Consumer complaint received 2023-05-17
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: ALLY FINANCIAL INC. (CA)

Re : AND Ally Bank ( owned by Ally Financial ) XXXX ( owned by XXXX XXXX ) XXXX, Utah XXXX, Arizona XXXX XXXX www.ally.com XXXX To whom it may concern, I would like to submit a complaint regarding Ally Bank and XXXX. I was a customer of Ally from XXXX XX/XX/XXXX until XXXX XX/XX/XXXX. I often used XXXX via the Ally phone application to transfer money with friends and family during that time. 

However, in XX/XX/XXXX, Ally and XXXX terminated my access without any cause over unfounded suspicion about fraudulent activity. Ally conducted an inadequate investigation that failed to take into account the relevant facts and circumstances and has caused me financial distress and harm by abruptly, and tortiously, preventing my access to my money. I have been conferring with legal counsel and sent letters to Ally and XXXX via the XXXX to establish the facts surrounding this situation and to 1. seek confirmation that neither Ally nor XXXX will be reporting any of my activity as fraudulent externally 2. for XXXX to reverse their decision and 3. for Ally to provide me with an accurate and complete statement of accounting of the last months transactions in light of the extensive evidence provided. 

In XX/XX/XXXX, I began planning a trip to XXXX XXXX with my friend of over ten years, XXXX XXXX. XXXX and I met in the XXXX XXXX XXXX XXXX XXXX XXXX XXXX in XXXX and have been very close ever since. A mutual friend from XXXX is getting married in XXXX XXXX, XXXX XXXX in XX/XX/XXXX. XXXX currently lives in XXXX, Colorado and works as a dermatology physician assistant. I currently live in XXXX XXXX, California and work as a XXXX XXXX XXXX XXXX XXXX performing reconstructive surgeries for children born with XXXX XXXX. XXXX and I began planning our trip in XX/XX/XXXX, and I paid for the following for both XXXX and myself : 1. Hotel in XXXX XXXX booked through XXXX XXXX and XXXX XXXX by XXXX booked for XXXX XX/XX/XXXX paid with my XXXX XXXX  XXXX XXXX on XXXX XX/XX/XXXX totaled {$520.00} 2. XXXX XXXX XXXX XXXX in XXXX XXXX, XXXX XXXX XXXX booked for XXXX XXXX paid with my XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX totaled XXXX XXXX as quoted by the lodge on- {$4200.00} was charged to my XXXX XXXX  - I quoted XXXX {$4200.00} via text on Monday ( see screenshot of conversion below ) 3. Hotel in XXXX XXXX booked directly through the hotel website The XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX XXXX booked with my XXXX XXXXXXXX XXXX XXXX on XXXX XX/XX/XXXX totaled XXXX ( equivalent to approximately {$1800.00} USD on the date of purchase ) In turn, my friend XXXX XXXX XXXX for my round-trip flights from XXXX XXXX to XXXX for the XXXX in XXXX XXXX, XXXX XXXX XXXX XX/XX/XXXX for flights on XXXX XX/XX/XXXX and XXXX XX/XX/XXXX totaling XXXX XXXX ( equivalent to approximately {$560.00} USD on the date of purchase ). 

( Please see attached document for original complaint submitted including screenshots and receipts. ) Because we split the costs of the hotels and safari lodge, XXXX owed me {$3300.00}, and we subtracted the {$560.00} I owed him for my flight, totaling {$2700.00} that XXXX owed me. 
XXXX XXXX is a XXXX customer who had never used XXXX before. I asked him to pay me via XXXX because I felt that it was more secure than XXXX, and far more efficient than mailing a check. On XXXX XX/XX/XXXX, XXXX tried signing up for XXXX. He had some difficulty doing so. At the end of XXXX XX/XX/XXXX, he was able to submit a {$2000.00} payment to me via XXXX due to daily limits, and he stated that he would send the remaining {$750.00} the following day. XXXX also mentioned issues with XXXX trying to verify his identity and he stated that the {$2000.00} payment was initially pending review, but that it did go through on XXXX XX/XX/XXXX. On XXXX XXXX, XXXX texted me that his account had been locked. However, by the end of XXXX XXXX, XXXX account was unlocked, the payment had been reviewed, and the payment was completed to me. I confirmed on XXXX XX/XX/XXXX via text that Gregs final payment of {$750.00} to complete the {$2700.00} he owed me was complete. ( Please see screenshots on attached document. ) Text chain between XXXX XXXX and myself discussing the costs and payments. ( Please see screenshots on attached document. ) XXXX and I thought that the issues had been resolved as the payments had gone through and what we owed one another was settled, since I had received email confirmations from Ally that both the {$2000.00} XXXX transaction had gone through on XXXX XX/XX/XXXX and that the {$750.00} XXXX transaction had gone through on XXXX XX/XX/XXXX. ( Please see screenshots on attached document. ) However, on XXXX XX/XX/XXXX I received two separate emails from Ally stating that XXXX had been deactivated for both my email address ( XXXX ) and my phone number ( XXXX ). ( Please see screenshots on attached document. ) I was in the midst of a very busy week of XXXX and was caring for my XXXX XXXX dog, so I was not able to call Ally right away. I figured that there had been some confusion since XXXX had trouble submitting the payments and that it would be easily resolved once I called Ally and/or XXXX particularly because they had approved the transactions and had fully deposited the funds into my Ally account. My dog passed away the night of Thursday, XXXX XXXX and I did not go to work on Friday, XXXX XX/XX/XXXX. 

On XXXX XX/XX/XXXX, I received an extremely alarming email from Ally, which stated : Ally Bank AlertYour telephone banking PIN has been changedIf you didnt make this change, call us immediately at XXXX. I also received three separate emails from Ally with the same message in triplicate asking me to call to verify information. ( I assumed corresponding to the three accounts I had open with Ally my checking account, a small stock checking account, and my savings account. ) ( Please see screenshots on attached document. ) I called the Ally Customer Care number ( as the Loss Prevention Line was closed after XXXX XXXX XXXX XXXX time ) immediately after I saw the emails I was extremely concerned that someone was trying to hack me, since I had not changed my banking PIN. I called spoke with Ally Customer Care at XXXX for 8 minutes at XXXX PM on Saturday, XXXX XX/XX/XXXX. At this time, Ally told me that Ally had actually changed the PIN themselves. I asked why and they said that there was a concern with my account and that they had locked all three accounts ( my checking, my stock checking, and my savings ). I was told to call the Ally Fraud Department the following day, since they were closed at that point. I was given the number XXXX. 

I called the Ally Fraud Department at XXXX several times on Sunday, XXXX XX/XX/XXXX to try to figure out what was happening. I called the Ally Fraud Department at XXXX XXXX and spoke with them for 4 minutes, called again at XXXX XXXX and spoke with them for 6 minutes, again at XXXX XXXX for 2 minutes, and XXXX XXXX for 5 minutes. On Sunday, I was told that all three accounts would remain locked pending an investigation, and that the investigative team did not work on weekends. I was instructed to give them a few days to complete their investigation and to call back at that point. I was concerned as my Ally accounts were my only source of funds. 

I called XXXX Customer Service at XXXX on Sunday, XXXX XX/XX/XXXX at XXXX XXXX for 6 minutes. I was told that because I was not using the XXXX application, they could not give me any information and that everything needed to go through the bank that was connected to XXXX. 

My jobs direct deposit went to my Ally Checking account and my entire savings was in the Ally Savings account. All of my autopays were linked to the Ally Checking account. However, because I had already paid my mortgage that month, because I had recently made some credit card payments, and because from what I could recall without access to my online account ( all three were paperless accounts ) most of my autopays went through around the XXXX of the month, I decided to be patient. 

Therefore, I followed Allys instructions and gave the Fraud Department three days to investigate. I called the Fraud Department at XXXX on Wednesday, XXXX XX/XX/XXXX after work at XXXXXXXX XXXX and spoke with someone for 10 minutes. At this time, I was told that either my friend XXXX XXXX or his bank, XXXX, had marked the transaction as fraud and this was why my account was locked. I called XXXX XXXX on XXXX XX/XX/XXXX at XXXX XXXX and spoke with him for 19 minutes. XXXX stated that he had not marked anything as fraudulent and that he would call his bank, XXXX, immediately to see if anything had accidentally been marked as fraud. XXXX called me back on XXXX XX/XX/XXXX and we spoke for 6 minutes at this time, XXXX stated that he had spoken with XXXX and that nothing had been marked fraudulent on their end. Apparently, the {$2000.00} payment was attempted once, and the {$750.00} payment was attempted three times, once successfully, but that nothing had been marked fraudulent at all on their end. Therefore, XXXX told my friend XXXX that there was nothing else they could do on their end. 

During one conversation, I asked Ally if they would accept a letter from XXXX bank, XXXX, sent directly to Ally stating that nothing had been marked fraudulent with these transactions on their end. The Ally representative stated that this would be very helpful, and to please have XXXX email the documentation to XXXX. I told this to XXXX, who called XXXX to ask for such documentation. Per XXXX, he was transferred three different times and spoke with two managers about this proposition and was ultimately informed that this would be illegal due to privacy issues, that they had never been asked for such a letter, and that they had never heard of the XXXX email address. 

On Thursday, XXXX XX/XX/XXXX, I called the Ally XXXX Department back for an update during a break at work. I was stuck on the call for 31 minutes. The very helpful representative said that he had escalated the issue to his manager to try to help the decision along, since I was unable to access any of my money, pay any of my bills, receive my paycheck from work, or pay my mortgage while this was being investigated/my accounts were locked. I asked if he could see if the accounts that the XXXX transaction was not deposited into could be unlocked so that I could at least pay my bills. He was very understanding and said it was a great idea, that he would see if that was possible. 

While on the phone with this agent, I missed a call from an Ally number of XXXX at XXXX XXXX. A woman at Ally left a voicemail stating This is an important message for XXXX XXXX from Ally Financial please give us a call back at XXXX I called the number back immediately at XXXX XXXX and spoke with Ally for 11 minutes. During this time, I was told that there was some movement on the investigation and that the investigator may give me a call soon. 

At XXXX XXXX  on XXXX XX/XX/XXXX, the investigator for the case called me and we spoke for 7 minutes. He, like previous Ally agents, asked me if I had ever given my Ally login or pin information to anyone else ( which I had not ), he asked me if I knew XXXX XXXX personally ( I stated that yes, we were longtime friends who were planning a trip together ), and I explained the situation. The investigator seemed understanding and stated that he would call XXXX right after this call and that I could likely expect a call back from him within an hour. I had to scrub into XXXX right after that call, but had our nurse watching the phone in case he called back. We finished XXXX and he had not called back as of XXXX XXXX, so I called Ally back at that time and spoke with them for 15 minutes. During this conversation, I was informed that a decision had been made within the last hour and that Ally Financial was terminating our relationship with you. I asked them to clarify how this decision was made I was told that XXXX told Ally that day that the XXXX XXXX transactions were fraudulent. I asked the Ally representative how XXXX and Ally had come to that conclusion, since no one had asked either XXXX or myself for any kind of supporting documentation that could prove our relationship and that a trip was currently being planned together. I was told that after receiving the information from XXXX, Ally had conducted their own internal investigation during the afternoon and that Ally had made the final decision to terminate our relationship. The Ally representative also stated that this sudden, unilateral termination was within their rights due to our agreements ( which I believe is true ), and that a check would be mailed to the address on file with the remaining funds in the account. 

Because Ally locked me out of all accounts, I was not able to verify that the amount I received back was correct. I was unsure if they were planning to return the previously deposited XXXX amounts from XXXX XXXX to him. ( As of XXXX XXXX, XXXX states that the funds have not been returned to him. ) I asked Ally how long it would take for me to receive the check I was told that it would be sent via regular mail and would likely take 7-10 days once it was mailed by Ally, and that Ally may take a few days to issue the final check. On Friday, XXXX XXXX, I discovered via my credit card and mortgage apps that all credit card payments and the mortgage payments I made on XXXX XX/XX/XXXX from my Ally account were returned, and now none of my bills or mortgage were paid, and the money will not be returned to me until after these were due. 

When the checks finally arrived, they arrived with no statement and zero explanation. I received three checks, one for each of my Ally accounts ( one savings and two checking ). None included a statement. They simply ( and deceitfully ) stated that the checks reflect the amount of the account at time of closure. I had to request statements through the XXXX  multiple times and via mail before receiving any. Eventually Ally disclosed via the XXXX that {$2000.00} was withheld on XXXX XX/XX/XXXX Ally stated that On XX/XX/XXXX, the XXXX XXXX noted that the {$2000.00} XXXX payment was reported as fraud. On XX/XX/XXXX, the funds were withdrawn from your XXXX and placed in a holding account and will be processed in accordance with any instructions received from XXXX and in compliance with the law. Ally also stated in their XXXX XX/XX/XXXX letter that my account closure will be reported to XXXX as a closed account and refused to discuss the future of the withheld {$2000.00}. They closed the BBB dispute on that date without resolution. 

I have many issues with how this issue was handled by both Ally and XXXX and have serious concerns with what may happen to me, my credit, and my ability to open bank accounts going forward. I have submitted these complaints via the XXXX without resolution - I have attached Ally and XXXX responses. 

Issues with Ally : - I feel that the investigation conducted by Ally was minimal effort. Their investigation changed the story multiple times. ( First it was that XXXX or XXXX had reported a transaction as fraudulent, then it was that XXXX XXXX was the one considered fraudulent, then finally it was that XXXX had determined that I was the fraudulent individual. ) Allys investigation ultimately relied solely on what XXXX stated - even though neither XXXX XXXX nor XXXX had reported the transactions fraudulent - without contacting me, XXXX XXXX, or Chase to provide any kind of documentation that could prove that XXXX and I were friends, that there was a trip planned, that he made the transactions, that the transactions were never reported as fraud. I could have provided all of the receipts, texts, and documentation of years of friendship with identity proof for both XXXX and myself. 
- I believe that Ally locking me out of all access of all accounts during their investigation, not just the account that received the transaction in question, was unfair and could have caused me undue harm and financial distress. Without access to any of my funds from the time they locked my account on XXXX XXXX until I received the check, I would have missed a payment on my mortgage, my student loans, several on my various credit cards, many autopays, and I would not have been able to receive at least one paycheck from my job as a physician assistant. This could have caused serious damage to my credit score and cost me huge amounts in late fees and APR charges, lasting for years, affecting my ability to open accounts, take out loans, etc. I believe that they should have solely locked the account into which the XXXX transaction was deposited and that there was not sufficient justification for locking all three accounts ( which I informed them during every single call were my only available accounts ). Fortunately, I have an extremely supportive family and job and my family helped me open another bank account and lent me money to pay my bills and mortgage in the meantime, and my job quickly changed my autopay before the next check was issued. For anyone without this kind of extreme support, this would have been financially devastating. 
- Ally has confirmed via the XXXX that they will be reporting this completely unsubstantiated account closure to XXXX ( and did not state that this would be the only report ). From what I know, XXXX gives consumers a credit rating that can make it extremely difficult for me to open other bank accounts for up to five years. As a young, single person with student debt and a mortgage, I could be extremely damaged by such unfair actions, since this alleged fraudulent transaction was not properly investigated. 
- Ally has unjustly withheld {$2000.00} of my funds without cause and with no communication about process for release. 

Issues with XXXX : - XXXX refused to speak directly with either XXXX XXXX or me, since we used XXXX through our banks. While I understand that this is their policy, I take issue that they clearly did not confirm with XXXX that neither XXXX XXXX nor XXXX had marked these XXXX transactions to me as fraudulent. 
- According to Ally, they were told definitively by XXXX that I had somehow committed a fraudulent transaction and that my email ( XXXX ) and cell ( XXXX ) were marked fraudulent/could no longer be used at XXXX. This is what turned the investigation, which had been sounding fairly promising Thursday morning after speaking with the investigator, immediately south. 
- Why was I, and not XXXX XXXX ( the one that made the transaction- which was reviewed, approved, and completed by XXXX ) marked as fraudulent? XXXX was cleared and his account was unlocked within one day. Why was only my end marked fraudulent and why was there no actual investigation/neither myself, XXXX XXXX , nor XXXX were asked to provide any documentation in defense? 
- I am also concerned that XXXX could report this completely unsubstantiated suspected fraud to federal or state officials and/or XXXX or any other consumer disclosure reporting agencies, again affecting my credit and life going forward. They did not specifically state via the XXXX even after I specifically asked multiple times that they would not be reporting me to any agencies, rather just stated that my account was active on XXXX. 
- According to Ally, XXXX is involved in the future of the withheld {$2000.00}. 

Ally has unjustly withheld {$2000.00} and have offered me no information about release, claiming XXXX will be involved. I am reaching out to California state and federal reporting agencies, and plan to take Ally ( and XXXX, if necessary ) to small claims court to retrieve the {$2000.00} I am owed. The distributed funds should also include the ~4 % interest these funds would have accumulated if in my savings since XXXX, as they would have in my possession. I also plan on disputing the closed account report directly with XXXX. 

Ideally, I would like governmental agencies to investigate Ally and XXXX actions in order to prevent similar issues from happening to others in the future its unlikely that most people have the support systems I am lucky enough to have, so they would be even more damaged by such unjust banking actions. 

I am able and happy to supply screenshots and verified cellular information from XXXX about all calls if needed. I have also included the most relevant XXXX communications as attachments. My friend XXXX and I have since gone on this trip, which I can also provide proof of, if needed. 

Thank you so much for your time. If the " Pray Ally XXXX XXXX Final '' document doesn't open properly please let me know and I can find another way to submit. 

Sincerely, XXXX XXXX