Consumer complaint received 2023-10-11
Company: ALLY FINANCIAL INC.
State: MD
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
I engaged in a consumer credit transaction with XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX. I endorsed a Promissory Note, where XXXX XXXX took a wet, blue ink signature accompanied by the words without prejudice/recourse, retaining and PROTECTING my Rights as a Consumer from any non-disclosures and fraud.

Pursuant 15 USC 1692 ( f ) ( 1 ), Ive recently disputed this debt, requesting the wet, blue ink signature on the bi-lateral contract/application through a series of Debt Validation and Proof of Claim letters ( certified mail # XXXX XXXX XXXX XXXX XXXX and XXXX ) delivered XX/XX/XXXX. Pursuant to the Truth in lending laws of the United States Code, Title 15 1601 et. seq. and the Fair Debt Collection Practices Act laws of the United States Code 1692 et. seq. the Debt Validation request constitutes a timely written response to the Fair Debt Collection Practices Act notice that Ally, attempted to collect an alleged debt and is not a dishonor of their alleged claim of debt. Nonetheless, they were unable to validate this debt ; as they could not produce the sworn affidavit of claim against me, nor a copy of the bi-lateral contract with both parties signatures ( proof of binding ), nor was Ally able to produce the true and certified copy of the Original Note. 
Instead, I received a COPY of the Original Contract with a clearly altered signature, missing the words and phrase without prejudice/recourse which is blatantly illegal. In addition, Pursuant Regulation Z/TILA, I was never made aware of my Right to Rescind and this fact of non-disclosure has caused insurmountable damages. Pursuant 15 USC 1635, without proper disclosure, all financial instruments created through Commercial fraud, are VOID. 
As I realized the contract was Fraud and this debt could not be validated by the financial institution nor the dealership ; I, the consumer, ceased further finance payments and Ally Financial consequently referred my account to their in-house Collections Dept for a remaining balance of {$1200.00}. Finance payments totaling {$19000.00} were made to Ally Financial via ACH transfers from my checking account before I ceased payment. Pursuant 15 USC 1692h, I am entitled to and request all payments returned ; as this account is designated CLOSED on my credit report. In addition, this Contract was VOID when full disclosure was not extended to me as the Consumer.

Although I gave notice, required by law Pursuant 15 USC 1692 ( g ) ( b ), in demand to cease and desist collection activities prior to validation of purported debt and that they must validate the enclosed claim of an alleged debt ; Ally Financial continued sending emails, texts messages, and phone calls. These communication tactics in trying to collect on a debt I do not lawfully owe ; the electronic usage and bombardment of mail and phone calls have severely inconvenienced my daily routine. The language in these attempts became abusive in threats to repossess the conveyance without legal proceedings ; which Pursuant 15 USC 1692 ( e ) ( 4 ), diminished my ability to maintain a healthy mental state and consequently, affected my physical health and peace during this chapter. From the non-disclosure of my Right to Rescind to the predatory lending practices, I demand full remedy. My Consumer Rights protected by the FTCAct and CFPAct have been gravely violated. My credit score has been heavily impacted amongst the 3 Credit Bureaus by reporting a debt that can not be Validated ; ultimately a debt I do not owe. I can not take advantage of lower interest rates, I've been denied employment, and the process of purchasing Home for a growing Family has been on halt. I have not been able to enjoy the full freedoms and liberty due to me in the Equal Credit Opportunity Act.

According to the Fair Credit Reporting Act, Section 609 ( a ) ( 1 ) ( A ) states, an entity, company, person and etc. are required by federal law to validate - through the physical verification of the original signed consumer contract - any and all accounts an entity, company, person and etc. post on a credit report. '' Ally Financial has been given multiple opportunities to provide proof of their claim and they have not been able to produce proper proof of validation of debt. I demand this be removed from my Credit file and history immediately.

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