Consumer complaint received 2022-02-23
Company: ALLY FINANCIAL INC.
State: MA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
I have been a customer of Ally Bank for over 10 years. I have used it as my primary financial institution for direct deposits and auto pay of bills. There has never been an incident. 

On XX/XX/XXXX I was notified via email that Ally Bank had frozen my accounts ( Checking, Savings, and CD ). There was no phone call. Just no access. They also cut my access to any online access. 

On XX/XX/XXXX, I called the fraud department. The fraud representative XXXX XXXX, I believe ) stated that 2 checks that I had recently deposited into my checking account were written on accounts of deceased individuals. I provided ample explanation that included the following. 

The first check was a final distribution from the estate of my grandfather, where I was a beneficiary. The check was signed by the executor of the estate. I provided the name and number of the executor so Ally could confirm the legitimacy of the check. I also mentioned to the fraud department that this deposit was from the same account and same executor signatory as a check deposited approximately 6 months earlier for the primary portion of the estate and that check had not resulted in any concerns. 

The second deposit from my uncle 's checking account. He died on XXXX XXXX, XXXX. I explained to the fraud department that I was a court appointed co-guardian for my uncle 's care and had signatory authority on his checking account with another co-guardian. I further explained that the check was for my uncle 's obituary that was put in the paper on XX/XX/XXXX. I informed the fraud department that I had signatory authority on the account and could provide that as well as all court documents. 

On this date ( XXXX ), the fraud representative said they would pass along all information I had provided and that the investigator or fraud department would reach out should they need anything further. At this time, Ally Bank could provide no timeline when the issue would be resolved. 

On XX/XX/XXXX, I called the fraud department as my accounts were still frozen. That fraud representative informed me that the check I tried depositing from my uncle 's account had been denied by his banking institution, XXXX XXXX XXXX ( XXXX ). XXXX had put the account on deposits only since my uncle was deceased. They did not inform me and the other co-guardian of the change in the account status. I spoke to our XXXX relationship manager, XXXX XXXX, who provided a letter stating that I had signatory authority and explained what had happened. This letter was to alleviate any concerns Ally Bank should have had about the deposit and at a minimum allowed me access to the accounts. 

On XX/XX/XXXX This XXXX  letter as well as all court documents giving me co-guardianship and XXXX were provided to Ally Bank via email to the fraud email address. 

On XX/XX/XXXX my account was still frozen. I called the Ally customer service department who said they could do nothing and they passed me to the fraud department. I spoke to XXXX in the fraud department. She informed me that there was nothing she could do. The matter was in the investigators hands, and they could not provide any timeline for when my accounts would be unfrozen. 

On XX/XX/XXXX I sent a letter to the head of Ally relationship management, XXXX XXXX, asking for assistance. I could not email her the letter as I did not have access to online banking ( frozen ). I had to overnight the letter to a XXXX XXXX XXXX No response as of XX/XX/XXXX. In addition, I sent the same letter to XXXX XXXX via XXXX hoping to get some response. No response as of XX/XX/XXXX. 

On XX/XX/XXXX I emailed the fraud department again asking for a resolution. No response. My husband ( also a customer ), sent a secure email since he still had online access to his accounts. They responded that they would pass along information to the fraud department but again, nothing they can do. 

On XX/XX/XXXX, I emailed the fraud department again. No response. 

On XX/XX/XXXX, I spoke again to XXXX XXXX at XXXX who confirmed that he had been contacted by Ally 's investigator on XX/XX/XXXX or XX/XX/XXXX and he again explained everything to the Ally investigator. I also spoke to XXXX XXXX, a XXXX manager, who expressed dismay at the length of time it is taking Ally and how banks, such as XXXX, would provide transparency, and at a minimum, provide a timeline. 

On XX/XX/XXXX, I called Ally 's relationship desk who then ( of course ) sent me to the fraud department. I spoke ( again ) to XXXX who stated that it was still with the investigators and that no timeline could be given. She further stated that under the deposit agreement ( which they will not allow you to negotiate ) states that they can freeze all my accounts for any amount of time. She further stated that they do not rush their investigations and that I had to deal with things. There was absolutely no concern for freezing an individual 's resources used for their livelihood. 

As of XX/XX/XXXX, my account has been frozen for 18 days. As the sole wage earner of a family of 4 who handles all the family finances, the freezing of our primary accounts has been detrimental to our family. All auto payments and direct deposits were to those accounts. I have had to re-route as many bills to another account I have and work to change all direct deposits so that I have access to the income I receive. The long-term freeze of all 3 accounts not only suspends a large portion of my funds it has resulted in past due bills and late fees. 

Although I appreciate a bank wanting to make sure that there was no illegal or fraudulent activities, I do not see how any financial institution can freeze all funds and all accounts essentially making it impossible for people to live. I especially do not understand how there can not be a time constraint to resolving investigations. How can it take a week to get an understanding of what they need because there is no transparency. How can any movement only appear to occur when there is an outreach by the person being harmed. Why does it take that outreach to gain any understanding of the situation. Moreover, how can it take another week once the investigator at Ally Bank has talked to XXXX ( XX/XX/XXXX ) for resolution that Ally can still freeze my accounts. And, How can it be that Ally Bank or any financial institution be held to accountability of working with their customers instead of provide an opaque wall so that they have my money but I have no information or known timeline. Why are the laws in the favor of the institution ( who holds the collateral and the legal arguments in their favor ) rather than the consumer. 

The Federal Reserve is tasked with supervising and regulating financial institution and activities to promote the safety and soundness of institutions and monitoring the impact on the financial system as a whole. They also hire examiners specially trained to examine banks for compliance with laws to ensure consumers are treated fairly and things are resolved in a timely manner. I do not understand how the issue outlined above is fair to me, the individual consumer, or the issue is being resolved in a timely manner. 

In addition, The Consumer Financial Protection Bureau exists to make sure banks and financial companies treat families fairly. I do not understand how a long-standing customer with no other issues for over a decade warrants such drastic action. How is it warranted to freeze all accounts for over 3 weeks effectively denying access to funds in which my family needs to live. 

The lack of customer service by Ally Bank is one thing and something that can be addressed by the XXXX XXXX XXXX  and possibly the CFPB. However, the lack of transparency into the issues and the blatant disregard of resolving issues timely by the fraud investigation should be, if it isn't already, illegal as it is obviously unethical. I I also do not understand, given the extensive XXXX process and constant monitoring done by banks as well as the fact that I am on no watch lists or have had any questionable activity allows a financial institution to withhold funds for such a length of time. If there is not already a law or regulation, there should also be one on reasonableness. Ally Bank 's actions are not reasonable considering all information ; especially for almost 3 weeks.

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 non-monetary relief