Consumer complaint received 2018-05-16
Company: ALLY FINANCIAL INC.
State: WA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Getting a loan or lease
Sub-issue: Fraudulent loan

Complaint:
On XX/XX/XXXX, I went to XXXX XXXX XXXX in XXXX, WA to Look at a vehicle. I did a test drive and decided to attempt to purchase the vehicle by completing my financing at the dealership. I knew that I wanted to go through my credit union as I have had an extensive lending relationship with them. Before the credit was run, The salesperson asked if I wanted them to run it through my credit union and a few other lenders in an attempt to find financing. I agreed to this. I waited in the salespersons room and several minutes later he came back with a printout offering me 9.94 % at 72 mos. I told him no. I asked who the financing was through. He indicated another lender not my credit union. He said hold on and he will see if anything else had come back. I waited another 10 mins and he came back with another document showing a fee removed for XXXX dollars and a rate of 8.94 %. I asked who the financing was through. He said Ally Financial. I asked what happened with my credit union? The salesperson specifically told me that my credit union declined me because I had 13 collections on my credit report. I was shocked, as I just purchased a home 7 mos ago. I have worked extremely hard to achieve homeownership and was aware of 3 outstanding medical collections that have not prevented me from purchasing my home and did not prevent me from obtaining additional UNSECURED credit from my credit union in XX/XX/XXXX when i asked for money for a car repair. I was in disbelief from what the salesperson told me and asked him what my credit score was. He didnt know but went to get my credit info and showed me that XXXX was reporting me with a score of XXXX. I told him to just give me a purchase order and I would call my credit union on Monday to find out why I was declined. He begins to question me as to why I need to check with my credit union if they have ALREADY DECLINED me. I told him I need to have a Sr underwriter to review my loan, because clearly one is not available. Once again, he says what do I think a Sr. Underwriter is going to do when they have already declined me.He leaves the room and comes back with a purchase order. I was set to leave. I then called my brother who is also a car salesman, and I ask him about the car, especially the sales price and the value of the car. I ran some numbers and decided I wanted the vehicle. The payment was XXXX than I wanted to pay, but I was thinking I could take what was being offered at this time and refinance my loan shortly once I cleaned up whatever issue was causing me to be declined by my credit union. I discussed the decline with the salesperson again, and he told me they have had recent issue with my credit union financing another client because they would not accept income as Noted on the customers paystub, stating that the weekly gross did not match they year to date on the stub. I decided to sign the paperwork with the finance person and we also discussed my confusion of being declined by my credit union. He  also went into detail regarding the same previous customer and the decline. 
I decided to call my credit union on Monday morning and spoke to a Sr.  Underwriter and explained what transpired. I was completely surprised when I heard that my loan was approved the following day at its FULL loan structure. NEVER ONCE WAS I TOLD MY LOAN WAS IN REVIEW STATUS by the salesperson or by the finance person. If I had known my loan was in review, I would have waited for an answer. Even if that meant risking someone else buying the car. I made my decision based on the exact words I was told, that my credit union declined me because I had 13 collections. When in fact, they had not even made a decision. I feel that I was misled, profiled, and taken advantage of. The dealer has their best interest at heart the rate they gave me was almost 2 points higher than what my credit union is willing to offer. And I was advised that my rate was lowered from 8.94 to 8.74 % during the signing. I have no Idea how that mysteriously happened. I have tried to work with my credit union to rectify this situation to see if they can pull the loan back, but the dealer told the dealer rep the transaction was already e-funded. The general manager reached out to me and stated he wanted to hear both sides of the story. I explained my side but the conversation went nowhere. The salesperson vehemently denies telling me I was declined and says he told me my loan was in review. I asked the general manager what he was going to do for me, and advise him that I have previous experience as an underwriter myself and know that any deal can be unfunded, but his answer was that he wanted to hear both sides, and he would train his people to communicate correctly going forward. I asked him what that does for me? He did he was done talking with me. I stand by the fact that I did not make up what I was told. While I was doing the transaction I was texting to friends explaining what was happening and what I was told. I have screenshots of my conversations stating I was told my credit union declined me. I will admit to my error of not coming to a dealership with my preapproval, which i will NEVER do again. It did not cross my mind that I would be blatantly lied to. The General Manager did a great job of looking out for his employees. I applaud that. He even accusingly asked me if I was calling the salesperson a liar? My answer is yes. But my screenshots dont lie.

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