Consumer complaint received 2023-10-21
Company: ALLY FINANCIAL INC.
State: KS
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
This is a lot, so I'll do my best to adequately explain how I feel violated by Ally Financial. I filed foXXXX XXXX XXXX  bankruptcy late this summer, which was approved for discharge. I was only able to reaffirm one car, but Ally informed me and my attorney that ( if I continued to make payments ) I could keep the car my daughter is driving ; she's currently in grad school. Shortly after filing bankruptcy, Ally locked us out of paying online. They said it was due to the bankruptcy but also informed me I could pay by phone for a fee and transferred me to their " bankruptcy dept ''. This bankruptcy department was also another company going by the name of XXXX or XXXX ; they continued to call me even during the bankruptcy stay, claiming that, because they were a different company and not Ally ( the creditor ) they could still call me. They would tell me I was behind on payments, which I would explain the situation and how we couldn't pay online or phone to Ally. I was told I would have to pay via phone through them now due to the XXXX XXXX When I tried to pay by phone via them, I was not allowed to- again they stated it was due to the bankruptcy but they could release that hold in 1-2 business days. I called back every 2 days only to get the same runaround ( the hold was still in place but the rep could call a supervisor and get it lifted ) and being kept on hold for hours ; not feasible with a XXXX job. However, we held on to the money owed each month ( 3 months ) so I would have it when I was able to pay somehow. XXXX gave me the same runaround for another month before I got irate and contacted my attorney to let them know of the situation, and told XXXX it's not fair to demand money yet make it impossible for someone to pay. The rep said that's their policy and even seemed shocked ( and disappointed ) when I told them I had the money in escrow to pay them, because I wasn't spending it each month just in case I'd be able to finally pay. I demanded to know how to send the money. They said to send it via XXXX XXXX. When I asked for the details to send it via this highly unusual way to pay a bill, I was placed on hold again for nearly an hour. I was at work and had to hang up while on hold. I visited the Ally website and found an address to send payments to if unable to pay online or by phone ; I sent a check for the past due amount at that time ( {$860.00} ) to this address via certified mail and called the company back to inform them. I was told to call back and provide them with the tracking number, which was on the receipt in my car at the time and I was at work and could not leave. I called back later that day with the tracking number and was transferred and placed on hold multiple times before reaching a rep who first acted as if he couldn't understand the tracking number I was giving him : I had to repeat it slowly several times until frustration led me to ask for a manager. After another long hold, I was transferred again and the rep told me that I'd sent the mail to the wrong address. I asked how was it wrong when it's on the Ally site and was informed that there's no one at the address ; it's just a XXXX XXXX they check every week or so. This was highly confusing and suspicious to me. My attorney also called them and contacted me to let me know of the outcome a couple of days later. I was informed that, after 4 hours, she was able to get in touch with someone at XXXX and could tell by the " beeps '' that more than one person had joined the call. She was finally able to get out of them that they'd already put in a repo order on the vehicle shortly after I filed for bankruptcy and the debt I owed Ally was discharged- way before they even contacted me about money owed. Basically, still trying to collect money from me that was no longer owed when they knew they'd already planned to pick up the vehicle since I hadn't reaffirmed with them. She encouraged me to cancel the check and consider giving back the car. Consequently, I called my bank to put a stop payment on the check and- thank XXXX the mail was delayed when I tracked it before doing so. When XXXX called again about the debt, I informed them of what I'd found out, that I'd stopped payment on the check and I wanted them to pick up the vehicle. The rep 's tone changed to apologetic and cooperative and, after verifying the car was at my address, she told me someone from the repo company would call me beforehand to let me know when they were coming to collect the car. Strangely, I wasn't kept on hold or transferred from dept to dept this time, since I wasn't trying to pay but only wanted them to come pick up their XXXX XXXXXXXX XXXXXXXX XXXX. My attorney tells me I have a case to sue them if I would like, but didn't recommend it because 1 ) it would cost me more than the car 's even worth and 2 ) I no longer owe them money and could just be free and clear of them forever. She advised that Ally has been guilty of these kinds of things in the past, to never do business with them again, and to inform the consumer financial protection agency that they are " up to their old tricks ''. Hence, this report I've just written. Thank you.

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