Consumer complaint received 2025-04-16 00:00:00
Product: Debt collection — Auto debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: ALLY FINANCIAL INC.
State: NY

Complaint narrative:
I am filing this complaint against Ally Financial for repeated, willful, and negligent violations of the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ). Ally Financial continues to report inaccurate and unverifiable information regarding a charged-off account to XXXX XXXX XXXX  despite it being deleted by XXXX, and has improperly sold the alleged debt to a third-party debt collector after I formally disputed it. 

Account : Ally Financial, Account # XXXX Type : Charged-Off Auto Loan Original Dispute Date : XX/XX/year> I sent Ally Financial a formal written dispute challenging the accuracy, completeness, and verifiability of the charged-off account in accordance with my rights under the FCRA ( 15 U.S.C. 1681 et seq. ). My letter requested the original signed agreement, a breakdown of the alleged debt, and documentation verifying the chain of title or assignment if the account had been transferred.

Ally Financial failed to provide any of the requested documentation and did not correct or delete the inaccurate information still being reported to XXXX XXXX XXXX  despite the account being deleted from XXXX, which strongly suggests the information is unverifiable or false. 

Even more egregiously, after receiving my dispute, Ally Financial sold or transferred the alleged debt to a third-party debt collector called XXXX XXXX XXXX XXXX XXXX violation of multiple consumer protection statutes. 

Violations Committed by Ally Financial : FCRA 623 ( a ) ( 1 ) ( A ), 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Ally furnished information it knew or should have known was inaccurate by continuing to report the charged-off account to some CRAs but not others.

FCRA 611, 15 U.S.C. 1681i : Failure to conduct a reasonable reinvestigation after receiving a direct consumer dispute.

FCRA 609, 15 U.S.C. 1681g : Failure to provide copies of all records relied upon to verify the alleged account, including the original signed agreement and charge-off accounting.

FCRA 623 ( b ), 15 U.S.C. 1681s-2 ( b ) : Ally failed to properly notify all CRAs of the results of the reinvestigation or delete the disputed information from all reports.

FCRA 623 ( a ) ( 3 ), 15 U.S.C. 1681s-2 ( a ) ( 3 ) : Prohibited sale or transfer of a disputed debt. Ally transferred the alleged debt after receiving a dispute notice, in violation of FCRA and established CFPB enforcement guidance.

FDCPA 807 ( 15 U.S.C. 1692e ) : Ally qualifies as a debt collector or is working with one, furnishing false, misleading, or incomplete information about a debt violates the FDCPA.

As a direct result of Allys actions : My creditworthiness has been damaged due to false reporting.

I have been denied credit and faced higher interest rates.

I have endured emotional distress, confusion, and loss of time disputing this matter. 
I am now dealing with collection activity on a debt that was under formal dispute and not validated.

Company response to consumer: Closed with explanation