Consumer complaint received 2025-04-16 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Unable to receive car title or other problem after the loan is paid off
Company: ALLY FINANCIAL INC.
State: TN

Complaint narrative:
I started the process to refinance my loan in XXXX of this year. After paying my car loan on time and over the amount due every month for a year to Ally financial, I refinanced for a lower interest rate with XXXX XXXX XXXX XXXX. Ally has been nothing but a nightmare ever since. on their website, it says that you need to request a refund for the gap coverage directly from the gap carrier on your loan. So, I called the gap carrier, who told me I would need to contact the dealership in order to get the gap coverage canceled. When I went to the dealership, I was told I had to show a letter from Ally showing the loan was paid off before the dealership could issue the cancellation and have the refund sent to me. I spoke with Ally no less than four separate occasions and asked them to send me the loan payoff letter at first, I was told that I would receive a letter in the mail and that I had to wait for everything to process with the payoff before they would send me the letter on XX/XX/XXXX, Ally finally posted to their account the payment that was made from XXXX, to pay off my car loan. I called again and was told I would need to wait another 7 to 10 business days to be able to get that letter of payoff once Ally finally issued the payoff letter to me, I took it to the dealership to cancel the gap coverage and was told the coverage had already been canceled by Ally and the refund had already been withdrawn from the dealerships account. According to the letter, the dealership has from Ally, Ally would automatically send me the refund after XX/XX/XXXX, as long as I hadnt received a refund from the dealership yet. I called XXXX that day and was told that they have processed two refund checks that did not include the gap coverage on XX/XX/XXXX. I advised that I did not receive either check and to please stop pay and re-issue those checks that was XX/XX/XXXX XXXX still do not have Any refund from Ally. I also called today since it is after XX/XX/XXXX to see if my gap coverage refund had been processed yet and I was told I would need to wait 60 days from the payoff date of XX/XX/XXXX to be able to find out the status of my gap refund. Ally has done nothing but hold my funds since I refinanced my loan. They still have not reported to the credit bureau that my loan is even paid off, even though I have the payoff letter from them. I have now wasted hours of my time, trying to track down the information that was told to me that I needed in order to receive a refund that I still have not received, but they have received from the dealership already. Ive been told contradicting information multiple times by different representatives at Ally and not a single person has been able to help me. This should be a violation. My funds are being held by Ally for no reason it does not take 60 days to process a gap refund on a loan that has been paid off, especially when they already have the money from the dealership it also should not take more than 30 days to receive a refund check for the overpayment which I still have not received.

Company response to consumer: Closed with explanation