Consumer complaint received 2025-05-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Getting a loan or lease — Confusing or misleading advertising or marketing
Company: ALLY FINANCIAL INC.
State: OH

Complaint narrative:
I am filing this complaint regarding Ally Financial for misapplying more than {$43000.00} in payments and trapping me in a predatory XXXX loan. Despite consistent payments over XXXX years, my balance remains nearly {$30000.00} on a XXXX now worth around {$14000.00}. Ally 's records falsely report that I have only paid {$18000.00}, a discrepancy of over {$24000.00}. 

Loan Summary : Loan originated : XX/XX/XXXX Amount XXXXXXXX : {$48000.00} XXXX : 15.64 % XXXX charge : {$28000.00} Scheduled total payments : {$76000.00} Current balance ( XX/XX/XXXX ) : {$29000.00} XXXX XXXX XXXX : ~ {$14000.00} Total Payments Made ( Documented ) : XXXX : {$4100.00} XXXX : {$9200.00} XXXX : {$12000.00} XXXX : {$12000.00} XXXX ( through XXXX ) : {$5100.00} Total paid : {$43000.00} Misapplication of Funds : Despite this payment history, Ally 's XXXX shows only {$18000.00} credited toward the loan. This appears to be a serious accounting error or unfair loan servicing. 

For example, on my XX/XX/XXXX statement : I paid {$1000.00} Only {$660.00} went toward the unpaid balance {$350.00} went to XXXX  charges {$0.00} applied to fees or other charges This shows that more than XXXX years into the loan, my payments are still heavily weighted toward interest, not principal even when paid on time. I believe this is an example of a predatory amortization structure designed to keep me in long-term negative equity. 

Misleading Loan Setup : When I entered the agreement, I believed I was a cosigner not the primary borrower. I already had another XXXX loan in my name and relied on the dealerships representations. The loan was processed with unclear disclosures, and I was unaware of the true interest rate and long-term financial implications. Ally 's position has been simply that you signed the contract, without addressing the misleading conduct or predatory terms. 

Financial Harm : I have paid over 56 % of the total loan schedule but am told I have only paid off 39 %. My loan is now $ XXXX underwater, and the current structure offers no realistic way to exit without severe financial loss. 

Requested Resolution : I am requesting that Ally Financial take the following corrective actions : XXXX a full, itemized audit of all payments I have made since the loan originated in XXXX, and provide a detailed accounting of how each payment was applied ( principal vs. XXXX  charges vs. fees ). 

Correct any misapplied payments and retroactively apply funds toward principal where appropriate, especially where finance charges were prioritized long after the loans early stages. 

Offer a fair settlement option that allows me to exit this loan without a deficiency balance and without a repossession being reported to the credit bureaus. 

I am not agreeing to a voluntary surrender unless : The remaining balance is waived in full after XXXX XXXXeturn Ally commits in writing not to report the surrender as a repossession The account is reported as " settled '' or " paid as agreed '' on my credit report Alternatively, Ally should offer a refinancing or loan modification with a reduced interest rate, fairer amortization structure, and transparent monthly reporting to ensure all future payments reduce principal appropriately. 

Finally, I ask that the CFPB review XXXX servicing practices and loan terms for potential violations of the Truth in Lending Act, Fair Credit Billing Act, or Unfair or Deceptive Acts or Practices ( UDAP ) standards. 


I am also submitting this complaint to the Ohio Attorney General for additional review. I believe XXXX conduct XXXX violate the Truth in Lending Act, Fair Credit Billing Act, and consumer protection standards related to unfair or deceptive lending practices.

Company response to consumer: Closed with explanation