Consumer complaint received 2021-10-12
Company: ALLY FINANCIAL INC.
State: CA
Product: Vehicle loan or lease
Sub-product: Loan
Issue: Problems at the end of the loan or lease
Sub-issue: Unable to receive car title or other problem after the loan is paid off

Complaint:
My car was totaled out on XX/XX/XXXX. My insurance company sent a settlement amount of approximately {$23.00}, XXXX to Ally as a settlement. Ally accepted the settlement payment and is still claiming that I owe {$2000.00} on the account. XXXX XXXX, the gap insurance provider has stipulated that the amortized balance on the car is approximately XXXX and Gap is not responsible for paying anything because Ally should be refunding me the customer {$6800.00}. 

Ally utilized the settlement funds from my insurance company to pay interest and finance fees that were no longer necessary because the car was paid off prior the five/seven years that the original financing was for. I should not have a balance with Ally. Gap was purchase and paid for, to supplement any additional amounts concerning a total loss of the vehicle ; and if I am responsible for paying an additional amount to Ally for a car that I paid GAP insurance for, the issue should be resolved between Gap and Ally, as long as I was in conformity with the terms of my loan agreement with Ally. I request that Ally remove any arrearage amount owed from the customer ; and refund the amounts owed to me as the customer concerning the referenced XXXX XXXX XXXX. XXXX XXXX Gaps Claim number is XXXX. I have attached the letter sent from XXXX XXXX concerning this issue for your reference. 

Further, when I originally bought the car in XXXX the dealership sold me an additional XXXX insurance policy which cost more than {$3000.00}. I never asked for that policy, because I already had full coverage through XXXX. I placed the dealership on notice within 30 days of purchasing the car. Although the car dealership failed to re-write the agreement for the loan, the XXXX dealership in XXXX XXXX refunded me approximately {$2900.00} and placed me on notice that I did not have a car payamne due until XX/XX/XXXX. The entire {$2900.00} were applied toward finance and interest fees ; additionally every single penny of my car payment went toward interest and finance fees from that point forward. The {$3000.00} should have been taken from the final balance of the car in XXXX and there should have been a re-write of the loan minus the {$3000.00}, which would have yielded a different balance altogether. Please correct that wrong, so this account issue can be resolved without error, because it was clearly not necessary for me to borrow the additional {$3000.00} and the refund of the money only went toward interest fees, not a penny of it went toward the principal balance. Finance fees and Interest fees were calculated to include the unnecessary {$3000.00} that never should have been charged. Additionally the total amount of my {$670.00} monthly payments went toward finance and interest fees. A certain portion of my car payments should have been allocated toward the principal balance. How much of the money that was paid on the car was actually allocated to the principal balance? I never cancelled my gap insurance, so I received a letter from GAP that I am not able to attach. A letter was sent from Gap, XXXX XXXX XXXX XXXX XXXX, XXXX Texas XXXX and Ally was sent a copy of this notice, stipulating GAPS amortized balance and placing Ally Financial at XXXX XXXX XXXX, XXXX, Kentucky XXXX ; on notice that a refund of {$6800.00} is owed to me, and there is no need for them to pay Ally the {$2000.00} that they are claiming that is owed on the car. Please assist Thank You! 
XXXX

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