Consumer complaint received 2023-05-09
Company: ALLY FINANCIAL INC.
State: MI
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On XX/XX/XXXX, I filed a complaint dispute for a fraudulent charge on my OLLO credit card with OLLO. The charge was from XXXX for {$31.00} and I did not make this charge. The OLLO card had not been used for any purchases since XX/XX/XXXX and had a balance of {$0.00}. 

I was told by a representative that they would report the fraud charge to their security department, and it would be resolved in about 2 weeks. After two weeks it was not fixed and was transferred to another department for dispute resolution, then transfered back to fraud, back to dispute resolution, back to fraud, and finally to security. By XXXX, the claim had been bounced around unresolved for two months. I began receiving emails from OLLO telling me that they were applying late fees on my card, interest, and that they were reporting to my credit late payments. By this point, I had contacted OLLO by phone over 18 times and had spent almost 15 hours total on the phone with different reps. I was assured that this was being taken care of, that non this would not be reported to my credit as it was not my charge, the late fees would be taken care of, and not to worry. On XX/XX/XXXX, during my XXXX phone call to OLLO I was told the fraud charge was finally being reversed along with the late fees and interest charges. However, this did not take place and on XX/XX/XXXX I discovered OLLO had reported this to my credit, had only reversed ONE fee & the fraudulent charge. 
I have asked for my calls to be reviewed, escalated, called over 28 times, spoken with countless employees and am not being helped. On XX/XX/XXXX, I spoke with a banking manager at ALLY who owns OLLO 's banking and was told I had to pay the late fees on the charge I never made and had been disputing since XX/XX/XXXX. I was also told by the same manager that they can report it to my credit for non-payment even though the fees were illegally applied to a fraudulent charge that had been deemed fraudulent. 

This is in direct violation of the fair credit act. A company is not allowed to report a late payment, charge fees, or charge interest on a charge that is in dispute or deemed fraudulent. I have tried to work with OLLO for almost three months and the situation is becoming worse and now they are illegally charging me fees and illegally hindering my credit report. I am NOW in grave fear this company is intentionally hindering my credit as I have made every effort to resolve this issue. I fear I am being bullied into paying fees I did not cause as this company will illegally report things on my credit report. 

I have attached screen shots showing the illegal fees being charged on a fraud charge. The letter showing the fraud charge being looked into & removed. I have also attached where it shows OLLO reported this to my credit.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation