Consumer complaint received 2025-04-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Account reinstatement or redemption after repossession
Company: ALLY FINANCIAL INC.
State: WI

Complaint narrative:
Illegal Repossession After Valid Rescission of Contract TILA Violations, Privacy Invasion, and Failure to Issue 1099-C Company : Ally Financial Inc . 
Account Numbers : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I am submitting this formal complaint against ALLY Financial Inc. and their dealer partner XXXX XXXX XXXX XXXX, for egregious and willful violations of my federally protected consumer rights, including but not limited to : Truth in Lending Act ( TILA ), 15 U.S.C. 1635 and 12 CFR 1026.23 Unlawful repossession without notice or due process Failure to respond to lawful demand for 1099-C ( cancellation of debt ) Tracking and invasion of privacy without consent Violation of contract law and failure to honor rescission rights On or around the date I entered into the original purchase agreement with XXXX XXXX for XXXX vehicle financed through Ally Financial, I exercised my Right to Rescind the contract under TILA 1635 ( a ) and 12 CFR 1026.23 ( a ) ( 2 ) within three business days, as required by law. This rescission was sent via Certified Mail # XXXX, addressed to Ally Financial, and included a formal Notice of Right to Rescind the Contract. 

Despite this timely and lawful rescission, Ally Financial illegally repossessed the vehicle without any prior notice. This was a surprise repossession, conducted without following proper legal procedures, and done in bad faith while I was still awaiting confirmation of the rescission and lawful discharge of the contract. 

I also sent a formal Notice and Demand for IRS Form 1099-C to both Ally and the dealership on XX/XX/year>, requesting documentation of cancellation of debt for Account Numbers XXXX and XXXX. To date, I have received no response, no 1099-C, and no lawful discharge or explanation for the repossession.

Under 12 CFR 1026.23 ( d ), once the consumer exercises the right to rescind, the creditor must return any property or money given, terminate the security interest, and do so within 20 calendar days. I was under no obligation to tender or return the vehicle until they satisfied this obligation.

Instead of honoring the rescission, Ally and/or its agents tracked me using the vehicle 's onboard systems, found me, and illegally repossessed the property. The police declined to intervene, calling it a civil matter, but this conduct clearly constitutes a federal violation of privacy rights, and an unlawful seizure of private property under color of corporate authority.

I was left without transportation, without recourse, and without income, as this vehicle was essential to my daily life and livelihood. I suffered financial loss, emotional stress, and reputational damage.

I also sent follow-up notices and affidavits of default, but because I recently moved, I do not have immediate access to all tracking numbers. However, Ally and XXXX XXXX were properly noticed, and I will provide copies of all correspondence upon request. 
Demands & Remedy Requested : Full investigation into Ally Financial 's and XXXX XXXX handling of the rescission notice Immediate correction and deletion of any negative credit reporting related to this matter Issuance of the IRS 1099-C for both account numbers as previously requested Formal acknowledgment of the rescission and return of any personal property or funds $ XXXX in damages for wrongful repossession, violation of consumer protection laws, financial hardship, and emotional distress Enforcement actions and penalties for Allys failure to comply with TILA and Reg Z requirements Available Documentation Upon Request : Certified Mail proof ( tracking # XXXX ) Formal rescission notice XX/XX/year> Notice & Demand for 1099-C Account numbers and dealership information Affidavit of Non-Response and Default Statement of damages Complainant Contact Info : Name : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 
Mailing Location XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation