Consumer complaint received 2024-09-30
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: ALLY FINANCIAL INC. (CA)

XX/XX/XXXX Ally Financial XXXX XXXX XXXX # XXXX XXXX, MI XXXX Subject : Formal Dispute of Account Information and Unlawful Repossession - Account No. XXXX Dear Ally Financial, I am writing to formally dispute the inaccurate information being reported on my credit report regarding an auto loan under Account No. XXXX, which was opened on XX/XX/XXXX. According to your records, this account has been charged off with a balance of {$29000.00} as of XX/XX/XXXX. However, this account was initially held with XXXX, and I made several payments under the original contract. XXXX subsequently sold the account to Ally Financial, and you are now inaccurately claiming that I made no payments. In addition, the vehicle in question was wrongfully repossessed without proper notice or compliance with applicable repossession laws. 

Violations Cited : Fair Credit Reporting Act ( FCRA ) - 15 U.S.C. 1681s-2 ( b ) : You have failed to maintain accurate records by reporting false payment information. I made payments under my contract with XXXX, and your reporting of no payments is in violation of this statute, which requires data furnishers to report only accurate information. Please investigate and correct the inaccurate reporting immediately. 
Truth in Lending Act ( TILA ) - 15 U.S.C. 1639 ( a ) ( 1 ) : As a creditor, you are legally obligated to disclose any changes in the ownership of the loan. There was no clear notice of the sale or transfer of my loan from XXXX to Ally Financial, nor were the terms of the loan or the status of payments properly communicated to me. This lack of transparency is a violation of TILA, specifically related to the failure to disclose the loan transfer and its impact on my payment history. 
Deceptive Practices - Federal Trade Commission Act ( FTC Act ) - Section 5 : Your actions in claiming that I owe money when payments have been made, along with your failure to account for those payments, constitute deceptive practices under the FTC Act. Furthermore, repossessing the vehicle without adequate notice or proper legal procedures amounts to unfair and deceptive conduct. These actions have caused significant harm by falsely inflating my debt and damaging my credit standing. 
Wrongful Repossession : Ally Financial repossessed my vehicle without proper notice, violating my rights under state repossession laws and the Uniform Commercial Code ( UCC ). I did not receive any notice of default or intent to repossess, nor was I given an opportunity to cure the alleged default. This repossession is unlawful, and I request immediate redress. 
Resolution Sought : Correct the Payment History : I request that you correct the payment history on my credit report to accurately reflect the payments made under the original contract with XXXX. 
Provide Proof of Debt and Explanation : I request a full investigation into this matter, including a detailed explanation of how the payments were applied, along with proof of the alleged outstanding debt. 
Reverse the Repossession and Restore the Vehicle : I demand that you return the repossessed vehicle immediately, remove any related charges, and correct any negative marks on my credit report associated with this wrongful action. 
Compliance with Legal Obligations : If Ally Financial continues to report inaccurate information, fails to return the vehicle, or does not correct these errors, I will pursue all available legal remedies. This includes filing complaints with the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and pursuing legal action for violations of the FCRA, TILA, FTC Act, and repossession laws. 
Supporting Documents : Attached are copies of proof of payment made to XXXX and any relevant documentation showing that payments were applied to the original account, as well as correspondence regarding the wrongful repossession. 

Please address this matter promptly, as these actions are causing ongoing financial harm and negatively impacting my credit report. I expect a response within 30 days of receipt of this letter, in compliance with the FCRAs requirement for investigation and correction of disputed information. 

Sincerely, XXXX XXXX See Attachments .....