Consumer complaint received 2018-07-02
Company: ALLY FINANCIAL INC.
State: AL
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Managing the loan or lease
Sub-issue: Problem with the interest rate

Complaint:
Purchased the vehicle on XXXX XXXX, XXXX from XXXX XXXX in XXXX FL. with Ally Bank, formally XXXX loan company with a TIL disclosure of on a Simple Finance Charge Installment agreement of 13.64 % with a 72 month term for XXXX a month. 

On or before XX/XX/XXXX I received a notice from ALLY Bank in the mail that they were not able to finance my vehicle for the terms and conditions made but not to worry, the payments were to be the same and if I had any questions to contact the dealership. 

At the end of XXXX the dealership called me and I went to pick up my tag and showed them the letter. They said nothing had changed and that they calculated my interest on a daily basis based on when I made my payment. Just like all loans they do with Ally. They never told me that my simple interest charge turned into a " FLEX FINANCE 1 interest charge and I would be charged interest differently and my Finance Charge on the FTILD area would be much more if paid in full by the due date. 

I found this out when I made my XXXX payment after logging into my back office with ALLY. I called them and after speaking to a finance supervisor of ALLY I DID NOT have a SIMPLE INTEREST loan ( fixed rate ) as disclosed on the TRUTH IN LENDING DISLOSURES portion of the RETAIL INSTALLMENT SALE CONTRACT. 

This is predatory loan and sales practices and both ALLY BANK and the Dealerships who use this loan installment agreement to bring down the guards of the consumer with a simple interest charge at the top of the page. They both should have been more transparent in disclosing changes to my agreed upon contract immediately after being informed and given the option to refinance or turn back in the car. I started watching my interest payments from XXXX forward. 

I called the Finance Manager of the Dealership of XXXX XXXX on XX/XX/XXXX and he was surprised of what I was told and wanted 3 days to discuss this with the bank and the owner and get back with me. He made the comment that he is selling these loans to not only his customers but his friends and family. I did not hear from him and called today to discuss this with XXXX XXXX XXXX. She said if I was not happy with Ally to come in and they would find another bank and help me get refinanced. This transaction would have never happened at all had I been told this to begin with. 

Today I called the finance company and asked them to send me the letter they sent me in late XXXX early XXXX ; as I can not find it now. I also spoke to a representative that told me that my interest payment is a FLEX FIANCE 1 and not SIMPLE INTEREST and is based on when I make my payments. I asked them to also send me a reconciliation of my loan based on the fact that if I do not pay it off early and go with the 6 year payment history to see how much interest I would be charged. I actually made two calls and got two different answers. One said I would only pay XXXX and the other said I would pay over the course of the loan. The other representative of ALLY told me as long as I had a balance, they had the right to charge me the yearly rate of 13.64 %. I would have NEVER bought this vehicle for this type of loan. 

That is not acceptable practices to begin and I feel that they are predatory and I want both of these companies exposed to the public and fined for their business practices.

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