Consumer complaint received 2025-02-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Loan opened without my consent or knowledge
Company: ALLY FINANCIAL INC.
State: MI

Complaint narrative:
XX/XX/XXXX XXXX XXXX XXXX delivered me a new truck and Ally bank was the alleged lender. 

XX/XX/XXXX, business manager XXXX XXXX created a brand new promissory note and forged my name 4 times and used my business EIN for credit. 

XX/XX/XXXX XXXX XXXX calls and asks to sign a brand new loan as Ally refused to accept the negotiable instrument as indorsed. 

XX/XX/XXXX i opted to go into dealership and discuss and indorse the new loan document. 

My original payment date was due on XXXX XXXX so, when i got my documents from ally stating a payment date of XX/XX/XXXX i was concerned and asked about the difference, i have recorded my call with Ally at this time and asked when my loan was created. the man on the phone stated it was created on XX/XX/XXXX. 

i never authorized my signature, indorsement or other pertinent information on that date. i was not even at the dealership. 

Ally responded to my prior CFPB complaint : XXXX and XXXX by claiming that i signed this loan and was held liable for the payments. they refused to fix the credit reporting and refused to provide the information i have requested by law they provide me. 

I contacted state attorney general of Michigan and filed a complaint about the fraud and forgery. XX/XX/XXXX i received a direct call from the investigator for the attorney general. in this call i was informed the state investigated the allegation and found the dealership did in fact commit fraud and forgery of this loan. The state attorney general has filed a fraud charge against XXXX XXXX XXXX for the fraud and the state will be pursuing a combination of civil fines and possibly criminal charges as a result of this intended fraud. 

Now since the state attorney general has proven the forgery and fraud, I will be contacting the FBI to pursue RICO violations between Ally Bank and XXXX XXXX of XXXX. 

Ally bank purchased the promissory note from XXXX XXXX. Ally performed an Account creation and credit my new account with the value of the promissory note. Ally thus created a liability on its balance sheet meaning that Ally owes that amount to me. The XXXX XXXX refers to funds that are credited to the account based on the processing of the promissory note or related transactions. The bank processed the note through the clearing system, potentially resulting in a higher amount credited to my account. Legally, this could result from how the bank structured the transaction, leveraging the note 's value for greater credit creation. 

Since the bank credited my account, I become the account holder in due course for the deposited funds. This means I am entitled to the funds credited to my account, and the bank is obligated to honor that amount under the agreement created by the promissory note purchase and subsequent crediting. so, the original note amount was {$91000.00} multiplied by 900 % is about {$820000.00} that would have been created. 

The legal foundation for this comes from UCC Article 3 ( Negotiable Instruments ) and Article 4 ( Bank Deposits and Collections ), which govern how promissory notes are transferred, how funds are credited, and how banks handle accounts in clearing processes. 
This explanation is based on the law and not speculation. The banks actions would need to align with these laws in terms of its obligations toward me as the account holder and its role in processing and purchasing the note.

Relevant Laws Protecting Your Rights 1. 12 U.S.C. 1821 ( a ) Deposit Insurance : This section outlines the FDIC 's authority to insure all deposits held at FDIC-insured banks up to the insurance limit ( typically {$250000.00} per depositor, per bank ). This protection extends to your deposit in case of malfeasance, mismanagement, or improper withholding of funds.

2. 12 U.S.C. 1819 FDIC Authority : This section gives the FDIC broad authority to regulate banks and investigate complaints where the bank has failed to operate properly, including blocking access to customer funds.

3. 12 U.S.C. 1831t Consumer Protections : This statute provides protection for depositors and consumers in relation to unfair or deceptive banking practices. Blocking access to funds in your account could be seen as an unfair practice under this provision.

4. UCC Article 4 ( Bank Deposits and Collections ) : Under UCC Article 4, a bank is required to honor the deposit agreements made with its customers, and it can not arbitrarily block access to funds that belong to the account holder. If the bank refuses to provide access without proper cause, this can be considered a violation of fiduciary duty or breach of the deposit agreement.

5. Trustee or Custodian Role : If the bank is acting as a trustee or custodian, it still must act according to fiduciary standards. This means the bank is responsible for handling your funds in good faith and with care, and denying access to the funds without a legal reason is a breach of this duty. 

1. XXXX XXXX XXXX XXXX and Consumer Protection Act ( 2010 ) Legal Framework : The Dodd-Frank Act established the CFPB to enforce consumer financial protection laws. It allows individuals to file complaints about unfair, deceptive, or abusive acts or practices ( UDAAP ) by financial institutions, including banks.

Key Sections : o 12 U.S.C. 5481 et seq. provides the statutory authority for the CFPBs power to investigate and regulate banks ' practices related to consumer financial products.

o 12 U.S.C. 5531 ( UDAAP ) prohibits unfair, deceptive, or abusive acts or practices in connection with consumer financial products or services. Denying access to your account could potentially fall under unfair practices.

Your Right : You are entitled to file a complaint with the CFPB if you believe the bank is engaging in practices that violate consumer protection laws, including blocking access to your account without legal justification.

2. Electronic Fund Transfer Act ( EFTA ) 15 U.S.C. 1693 et seq.

Legal Framework : The EFTA governs electronic fund transfers and protections for consumers in banking relationships, including unauthorized or improper withholding of funds.

Key Section : o 15 U.S.C. 1693f covers the rights of consumers to dispute errors related to electronic transfers, which can include improper restrictions on access to your account.

Your Right : If your access to the account is blocked in a way that prevents electronic fund transfers, the EFTA gives you grounds to file a complaint through the CFPB.

3. Truth in Savings Act ( TISA ) 12 U.S.C. 4301 et seq.

Legal Framework : The Truth in Savings Act ensures that banks provide clear disclosures regarding the terms and conditions of deposit accounts, including how and when funds are accessible.

Key Section : o 12 U.S.C. 4303 mandates that consumers must have clear access to their funds according to the terms provided by the bank.

Your Right : If the bank is not honoring its disclosure of account access rights, you can file a complaint with the CFPB under this act.

4. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681 et seq.

Legal Framework : The FCRA governs how financial information is reported and can be relevant if the blocked account impacts your credit or if the bank is not properly handling your credit-related rights.

Your Right : If the bank 's actions have affected your credit report ( for example, due to missed payments or penalties related to blocked access ), you can file a complaint with the CFPB under the FCRA.

Company response to consumer: Closed with explanation