Financially troubled auction company Kruse International has announced it is partnering with Chase Bank to provide an escrow system to help protect customers.
In a statement, the company called the arrangement “the best seller-buyer program in the collector car business.”
The plan will place sellers’ money in a third-party escrow account with Chase Bank.
The auction company and its owner, Dean Kruse, are currently involved in a series of lawsuits as both plaintiff and defendant. The company recently announced plans to sue customers and business associates who have not paid off debts. Previously, Kruse has been the target of multiple lawsuits and property foreclosure efforts.
Kruse has blamed the economy and late payments from its buyers and debtors as the main sources of its economic problems. In pending lawsuits in DeKalb County, Hillcrest Bank claims Kruse and his companies owe $6.5 million, and FCOF Midwest Credit LLC filed to foreclose its mortgage on Kruse Auction Park, saying the loan is in default for $7.8 million.
MORE RESOURCES FOR CAR COLLECTORS FROM OLDCARSWEEKLY.COM