Consumer complaint received 2023-08-10
Company: ALLY FINANCIAL INC.
State: TN
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Other transaction problem

Complaint:
The situation consisted of a fraudster posed as a member of law enforcement. Specifically, the fraudsters involved were impersonating the XXXX XXXX Sheriff deputies, who falsely accused me of contempt of court and failure to appear, while also imposing monitoring in place orders. To avoid jail time and criminal charges, the fraudsters demanded through scare tactics multiple bond payments and was in constant contact through every financial transaction that took place. The fraudsters initiated the P2P transfers via XXXX and XXXX and forced us to complete multiple transfers. At no time did we receive any benefit from the transfer. In fact, we suffered from financial loss. On XX/XX/2023, I initiated disputes with Ally Bank for transactions that debited my Spending account ending in XXXX between XX/XX/XXXX and XXXX, 2023, 11 transactions, totaling {$13000.00}. 

On XX/XX/2023, Ally Bank took proactive measures to thwart fraudulent activity associated with XXXX by initiating an account lock due to an inability to verify the account holder 's identity. In addition to the unusual nature of multiple transactions, Ally Bank possessed evidence of an unauthorized transaction within the P2P account linked to the same individual involved in the other transactions. 

On XX/XX/2023, a phishing text was disseminated, with one of the fraudsters attempting to impersonate Ally Bank. This incident was promptly reported to Ally Bank. Regrettably, Ally Bank 's subsequent investigation failed to acknowledge this occurrence or establish a connection to the ongoing fraudulent activities. In response, we received a standardized response from Ally Bank, stating, " We are committed to protecting the personal information of our customers. We always encourage customers to pay very close attention to any unusual activity on their bank accounts and debit/credit cards. '' Unfortunately, Ally Bank has yet to recognize the potential linkage between these events. 

Ally Bank denied these disputes due to Regulation E, as a non-covered transaction which include : Merchandise ordered but not received, defective merchandise, wrong merchandise received, service not rendered, 3rd party NSF fees ( e.g., Return Check Fee ), transactions processed by a 3rd party processor, customer provided debit card ( DC ) and PIN information to another person ; however, failed to contact us to inform us they had revoked the other persons authorization to use the DC. Ally Bank stated : Additionally, XXXX is a service that is used by a number of financial institutions and allows individuals to send and receive money with almost anyone who has a XXXXXXXX XXXX  account by using their email address or a U.S. mobile number. XXXX is intended for sending money to family, friends, and other people you trust. You should not use XXXX to send money to recipients with whom you are not familiar or do not trust. When you enroll to use XXXX as an Ally Bank customer, you agree to its terms detailed in the Ally Bank Online Banking Services Agreement, Version XXXX, effective XX/XX/2023. Further, subject to our obligations under applicable laws and regulations, you agree that you, not Ally Bank or XXXX, are responsible for resolving any payment or other disputes that you have with any other user with whom you send money to, or receive or request money from, using XXXX. 

We are under the impression that the Electronic Fund Transfer Act ( EFTA ) and Regulation E are applicable to P2P payments like XXXX and XXXX. This applies particularly to instances where a consumer is deceived into performing an Electronic Fund Transfer ( EFT ), which subsequently renders the transaction unauthorized due to fraudulent inducement. 12 CFT 1005.2 ( M ). I am also of the understanding that the Electronic Fund Transfer Act ( EFTA ) incorporates an anti-waiver provision, which stipulates that " [ n ] o writing or other agreement between a consumer and any other person may contain any provision which constitutes a waiver of any right conferred or cause of action created by [ EFTA ]. '' ( 15 U.S.C. 1693l ). This provision emphasizes that an agreement can not curtail a consumer 's rights beyond the scope defined by the law. Any contractual arrangement that attempts to limit these rights is deemed a violation of the EFTA. 

I am requesting that this dispute be evaluated to ensure all regulations are being followed and that as a consumer I am being protected against fraudulent activity. Furthermore, I am requesting my account to be credited {$13000.00}. 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