Consumer complaint received 2024-09-03
Product: Checking or savings account — Checking account
Issue: Managing an account — Banking errors
Company: ALLY FINANCIAL INC. (MA)

XXXX XXXX XXXX Ally Bank is negligent of not investigating previously canceled recurring XXXX transfers that reappear several months after they were canceled and result in unauthorized attempts to make withdrawals from customers accounts. In addition, Ally Banks record keeping practices regarding customers requests to schedule, modify, and cancel recurring XXXX transfers are weak as they allow deletion of the information. 

Dear CFPB, I am writing to express my deep concern regarding an attempt of Ally Bank to transfer funds in amount of {$2700.00} from my checking account on XX/XX/XXXX, which Ally Bank claims were part of a recurring monthly XXXX transfer. This incident is troubling given the fact that I had explicitly canceled the entire recurring transfer series in question on XX/XX/XXXX. 

On XX/XX/XXXX I had scheduled a recurring monthly XXXX transfer in the amount of {$2700.00} from my checking account ending in XXXX to one of my XXXX recipients XXXXXXXX XXXX XXXX XXXX XXXX XXXX ) at XXXX with the initial transfer anticipated to occur on XX/XX/XXXX and then on the XXXX of every subsequent month ( XX/XX/XXXX, XX/XX/XXXX, etc ). However, subsequently I canceled the entire series of the recurring transfers on XX/XX/XXXX. In addition, in XX/XX/XXXX, I canceled absolutely all remaining ( I had at least three other recurring XXXX transfers with Ally Bank at that time ) recurring transfers associated with my account. At the end of XX/XX/XXXX I also verified through my online banking that no outstanding future scheduled XXXX transfers were showing up on my account. 

Despite these clear cancellations, there was an unexpected attempt to make a XXXX transfer from my account on XX/XX/XXXX for the amount matching the previously canceled recurring transfer. When I contacted Ally Bank and learned that my account was blocked due to not enough funds to cover the transfer I informed Ally Bank that the transfer attempt was clearly a banks error since I had canceled all recurring transfers months prior. The Ally Banks representative I was conversing with acknowledged the cancellation I had made in XXXX and indicated that they would file a report ( case number XXXX ) so that Ally Bank would investigate the matter. 

However, my subsequent inquiries about the status of this investigation have yielded unsatisfactory results. The bank has informed me that they can not locate a record of my earlier cancellation, despite my clear recollection and previous correspondence. Ally Bank was using the cancellations that were processed on or after XX/XX/XXXX ( those that were done after the fact to correct the problem that had already occurred ) as an excuse not to investigate the issue. The text of the original report that Ally Banks representative had filed as case number XXXX also can not be located by the banks representatives. The bank had claimed that no cancellations of the recurring transfer had occurred ( according to the records that they have ) prior to XX/XX/XXXX. 
It is important to note that if the recurring transfer had not been canceled prior to XX/XX/XXXX, it would have been expected to be processed on XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. The fact that no such transfers occurred during these periods strongly suggests that a cancellation was indeed in place. The attached correspondence with Ally Bank shows that they are aware that a cancellation of the recurring transfer originally scheduled for XX/XX/XXXX has happened on XX/XX/XXXX, however, to my additional questions whether, according to the Ally Banks records, that cancellation was for the entire recurring sequence of transfers or not Ally Bank has not responded. 

In one of the conversations I had with Ally Bank on XX/XX/XXXX I asked Ally Banks representatives to check the history of the email communications that Ally Bank had with me with regards to my account activities. Such correspondence history should have included all confirmations of my XXXX transfers cancellation requests and would help Ally Bank to identify using their internal data on what dates my recurring transfer sequence cancellation requests had occurred. Ally Banks representative informed that they do not have access to the history of the email communications prior to XX/XX/XXXX. During that conversation I had made a request for reasonable accommodations under the Americans with Disabilities Act to Ally Bank to restore my email communications with Ally Bank since XX/XX/XXXX ( request reference number XXXX ). In the attached document I am enclosing Ally Banks Executive Customer Relations representatives response to my request claiming that Ally Bank can not accommodate it and not providing any explanation of whether granting me the requested reasonable accommodation would constitute an undue burden on the bank or would require the bank to fundamentally alter the nature of the service it provides to the public. 

I believe that the described incident of Ally Banks attempting to perform a transfer that was canceled by the customer months prior and the banks inability to properly investigate the cause of that is indicative of a serious flaw in Ally Bank 's or its vendor 's system, which is allowing unauthorized transfer attempts to occur. Furthermore, the bank 's failure to investigate this issue thoroughly and its apparent deletion of relevant requests history demonstrate the Banks lack of due diligence. 

Thank you for your prompt attention to this matter.