The Kelly Grimsley Auto Group, an Odessa, Texas car dealership founded in 1994, lost its three Texas motor vehicle sales finance licenses on December 10, 2025, after state regulators found it had failed to pay off more than a hundred customer trade-ins, left dozens of buyers without titles or registrations, and ignored a September order requiring restitution.1Texas OCCC. OCCC Order of Revocation L26-026 If you bought or traded in a vehicle there, the state has ordered the dealership to fix your paperwork and refund what you’re owed, and there is a specific person at the state agency to contact.
What Went Wrong for Customers
Two problems hit buyers hardest. When customers traded in a vehicle, the dealership was legally required to pay off the existing loan on that trade-in within 25 days. In many cases, it never did. Customers kept getting bills, past-due notices, and collection calls on cars they no longer owned, and some watched their credit scores fall while they made payments on two vehicles at once to limit the damage.2BBB. Kelly Grimsley Auto Group BBB Complaints In at least one case, a tow truck arrived to repossess a car a customer had bought, because the dealership had never paid the prior lienholder.3NewsWest 9. Customers Kelly Grimsley Auto Group in Odessa Dealership Sued
The second problem was titles and plates. Buyers reported that the dealership never filed the paperwork for registration, so they drove for months on expired temporary tags. The Texas Office of Consumer Credit Commissioner (OCCC) later identified 104 trade-in vehicles with unpaid balances and 92 transactions where the vehicle was never properly titled in the buyer’s name. Investigators also found the dealership had collected title and registration fees from customers that it never actually paid to public officials.4Texas OCCC. OCCC Order L25-139
The State’s Orders and License Revocation
The OCCC investigated on site in June 2025 and found the 8th Street location closed. An employee blamed “cash flow issues” for the unpaid trade-in payoffs.4Texas OCCC. OCCC Order L25-139
On September 25, 2025, Consumer Credit Commissioner Leslie L. Pettijohn signed an order (Case No. L25-139) giving the dealership 30 days to pay off every overdue trade-in balance, title and register every affected vehicle in the buyer’s name, refund any title and registration fees it had overcollected, and file a spreadsheet documenting each correction.4Texas OCCC. OCCC Order L25-139
The dealership did none of it. It never submitted the spreadsheet and never responded to the agency. On December 10, 2025, the OCCC issued a revocation order (Case No. L26-026) pulling all three of the dealership’s motor vehicle sales finance licenses (Nos. 37315, 46668, and 55132). The order concluded the violations were committed “knowingly or without exercise of due care” and imposed a $20,000 administrative penalty, calculated at $1,000 per day for the 20 days of continuing violation.1Texas OCCC. OCCC Order of Revocation L26-026
The revocation also barred the dealership from entering or accepting any new retail installment transactions, ordered it to stop collecting payments from consumers, release all vehicle liens it held, return any unsold repossessed vehicles, and refund overcharged title and registration fees.1Texas OCCC. OCCC Order of Revocation L26-026
What to Do If You Bought or Traded a Car There
On paper, the dealership itself is supposed to identify affected customers and issue payoffs, refunds, and title corrections without you filing a claim. Because it ignored the first order, the practical step is to contact the state directly.
The OCCC attorney handling the matter is Matthew Nance, general counsel. His email is matthew.nance@occc.texas.gov and his phone number is 512-936-7660.1Texas OCCC. OCCC Order of Revocation L26-026 Local reporting also pointed affected buyers to the Texas Department of Motor Vehicles and the Better Business Bureau for complaints.5YourBasin. Kelly Grimsley Auto Kia Under Fire: Here’s What You Need to Know if You Made a Purchase When you make contact, have your bill of sale, trade-in documents, any communication from your old lender, and the VIN of both vehicles ready.
Keep making payments on any loan still in your name, including the old trade-in loan, until it is actually paid off. Customers who stopped paying saw their credit reports damaged and, in at least one instance, had a car repossessed.2BBB. Kelly Grimsley Auto Group BBB Complaints
The Honda Store Is a Separate Business
In December 2024, Kelly Grimsley sold its Honda store to Ethan Lee, who rebranded it as Lumos Honda. Lumos has publicly stated it has no affiliation with Kelly Grimsley or its liabilities.5YourBasin. Kelly Grimsley Auto Kia Under Fire: Here’s What You Need to Know if You Made a Purchase The OCCC action concerns Kelly Grimsley Auto Group, Ltd., not the current Lumos Honda operation.
The Hyundai Capital Lawsuit
Separate from the consumer harm, the dealership’s floorplan lender, Hyundai Capital America, sued Kelly Grimsley Auto Group in federal court on March 25, 2025 (Case No. 7:25-cv-00143, W.D. Tex.). The suit alleged the dealership had sold hundreds of vehicles “out of trust,” meaning it sold cars off its lot without repaying the loans that had financed the inventory. As of March 6, 2025, the dealership reportedly owed nearly $15 million, held more than 400 vehicles with unpaid floorplan balances, and had bounced checks to the lender.6Yahoo News. Kelly Grimsley Auto Under Fire4Texas OCCC. OCCC Order L25-1397Automotive News. Kia Dealership Settles Hyundai Capital Lawsuit8PACER Monitor. Hyundai Capital America v. Kelly Grimsley Auto Group, Ltd. et al That case resolved the lender’s claims and did not compensate individual buyers.
No Class Action, No Reported Criminal Charges
No class action lawsuit on behalf of affected Kelly Grimsley customers has been identified in court records, and no criminal charges against the dealership’s principals had been reported as of the most recent available information.1Texas OCCC. OCCC Order of Revocation L26-026 For now, the OCCC’s restitution order is the primary vehicle for making buyers whole, which is why direct contact with the agency matters.