Consumer complaint received 2024-09-06
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem with paying off the loan
Company: ALLY FINANCIAL INC. (TX)

Ally Bank was my lienholder on a XXXX XXXX XXXX ( VIN XXXX ). The truck was sold to XXXX and the XXXX XXXX XXXX was fully executed by all parties on XX/XX/XXXX ( copy of this executed document attached ). Per the terms of this agreement, in this directly relevant section of the paragraph identified as XXXX XXXX, it states : XXXX will pay the amount of the liens obtained from the lienholder ( XXXX ) on your behalf, as reflected in Line ( XXXX ) ( Estimated Payoff ). You authorize XXXX to contact the lienholder ( XXXX ) to obtain whatever information is necessary to pay off the liens and transfer title and you give the lienholder ( XXXX ) authorization to release information to XXXX. The Estimated Payoff may be greater or less than the amount that is actually due to the lienholder ( XXXX ) to transfer title ( Actual Payoff ). You agree to pay XXXX the difference between the Estimated Payoff and the Actual Payoff plus any additional costs incurred by XXXX, upon demand. In order for you to transfer a marketable certificate of title, all lines on the Vehicle must be paid. If the Actual Payoff is less than the Estimated Payoff, you will receive a refund of the difference from your lienholder. 
If you notice in the attached Vehicle Purchase Agreement, there was XXXX in this vehicle i.e. enough to fully pay all liens on the vehicle.. An Actual Payoff amount includes all principal, interest AND FEES owed to the lienholder. Neither I, nor XXXX, were EVER contacted by Ally to make us aware of any remaining balance owed on the vehicle, etc. XXXX were we contacted by XXXX to make us aware of any remaining balance owed to the lender that would prevent them from obtaining the tile to this vehicle and completing the transaction as contracted. The title of the XXXX XXXX Tundra WAS IN FACT RELEASED BY ALLY BANK TO XXXX. XXXX purchases vehicles with the intent to resell them. which would require a clear title. 
Fast forward to XXXX of XXXX when I, XXXX XXXX, go to purchase another vehicle and my credit report is pulled ( relevant section of my credit report is ALSO attached ) and there is a {$660.00} balance showing owed from Ally Bank. The last payment is reported as being received on XX/XX/XXXX. This is only two calendar days following the executed Vehicle Purchase Agreement from XXXX. This remaining balance was never disclosed to us in writing, and it wasnt per the terms of the purchase agreement, if money was owed on the vehicle above the amount XXXX received from Ally Bank, then the title to the truck should not have been released by the bank, it wouldnt be a clear title, and a XXXX would remain. 
Ally Bank never notified us of a balance, and strangely, left this {$660.00} balance to be reported on my credit report from XXXX of XXXX through XX/XX/XXXX, which they charged off as bad debt. However, they ONLY reported late payments to the bureau in XXXX, XXXX, XXXX, & XXXX of XXXX. Except for those months, they reported to the bureaus as paying as agreed but the balance never changed.