Consumer complaint received 2024-09-29 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: ALLY FINANCIAL INC.
State: CA

Complaint narrative:
[ XXXX XXXX ] XXXX XXXXXXXX XXXX XXXX XXXX  XXXX, CA XXXX XXXX ] XX/XX/XXXX Ally Financial XXXX XXXX XXXXXXXX XXXX XXXX  XXXX, MI XXXX Subject : Formal Dispute of Account Information - Account No. XXXX Dear Ally Financial, I am writing to formally dispute the inaccurate information being reported on my credit report regarding an auto loan under Account XXXX. XXXX, which was opened on XX/XX/XXXX. According to your records, this account has been charged off with a balance of {$29000.00} as of XX/XX/XXXX. However, this account was initially held with XXXX, and I made several payments under the original contract. XXXX subsequently sold the account to Ally Financial, and you are now inaccurately claiming that I made no payments. 
Violations Cited : Fair Credit Reporting Act ( FCRA ) - 15 U.S.C. 1681s-2 ( b ) : You have failed to maintain accurate records by reporting false payment information. I made payments under my contract with XXXX, and your reporting of no payments is in violation of this statute, which requires data furnishers to report only accurate information. Please investigate and correct the inaccurate reporting immediately. 
Truth in Lending Act ( TILA ) - 15 U.S.C. 1639 ( a ) ( 1 ) : As a creditor, you have a legal obligation to disclose any changes in the ownership of the loan. There was no clear notice of the sale or transfer of my loan from XXXX to Ally Financial, nor were the terms of the loan or the status of payments properly communicated to me. This lack of transparency is a violation of TILA, specifically related to failure to disclose the loan transfer and its impact on the payment history.

Deceptive Practices - Federal Trade Commission Act ( FTC Act ) - Section 5 : Your actions in claiming that I owe money when payments have been made, and failing to account for those payments, constitute deceptive practices under the FTC Act. This unfair and deceptive conduct has caused significant harm by falsely inflating my debt and damaging my credit standing. 
XXXX XXXX : I request that you conduct a full investigation into this matter and provide me with proof of the debt as well as an explanation for the inaccurate reporting of no payments. 
I request that you correct the payment history on my credit report to reflect the payments made under the original contract with XXXX. 
Should Ally Financial continue to report inaccurate information or fail to correct this error, I will seek all available legal remedies, including filing complaints with the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ) for violations of the FCRA, TILA, and FTC Act. 
Supporting Documents : Attached are copies of proof of payment made to XXXX and any relevant documentation showing that payments were applied to the original account. 
Please address this matter promptly, as these reporting errors are causing ongoing damage to my credit report. I expect a response within 30 days of receipt of this letter, in compliance with the FCRAs requirement for investigation and correction of disputed information. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation