Consumer complaint received 2025-04-14 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: AZ

Complaint narrative:
This complaint is supplemental to a prior CFPB complaint filed against Ally Financial. The original case number is XXXX. This updated submission includes critical new facts and information regarding recorded conversations that were not included in the initial filing. 
-- -- - Ally Financial Mishandled Title Transfer, Provided False Information, and Failed to Support Resolution In XXXX, I purchased a vehicle while residing in California. In XXXX, I moved to Arizona and properly updated my address with my lender, Ally Financial, for both billing and garaging purposes. To register the vehicle in Arizona, I was required to submit a letter of authorization from Ally to the Arizona XXXX, which Ally provideddemonstrating their full awareness that the vehicle was being registered and garaged in Arizona. 

In XXXX, I moved to a new residence in XXXX, Arizona, and once again updated my address with Ally. In XXXX, I legally changed my name and submitted supporting documentation to Ally, which was accepted and processed. 

After making my final loan payment, I received confirmation from Ally that my vehicle title had been released. However, I was informed by the Arizona XXXX that the title was still located in California. Upon contacting the California XXXX, I was told that Ally had never closed out the California title record, and as a result, I now owe backdated registration fees to California. In addition, I am being told I must submit additional paperworkincluding documentation of my legal name changeto California in order to retrieve the title. 

The California XXXX also informed me that the title had been mailedhowever, it was sent to an outdated Arizona apartment address that I vacated in XXXX. Ally had my updated home address on file prior to the title release, yet still mailed the title to the wrong address. This has left my vehicle title potentially in someone elses possession, creating risk of misuse and further complications. 

When I initially contacted Ally regarding this, a representative acknowledged that the failure to close the California registration was their mistake and a result of internal negligence. I was told at that time that Allys title department would handle the resolution. Ally claims to record all phone calls, and this conversation should be on file. 

However, during a recent follow-up, Ally reversed their positionstating that they do not have a title department and that I must obtain an Arizona XXXX form to reinitiate the title transfer process. Additionally, I was informed there is no email address available for submitting documents, and that my only option is to mail materials to a XXXX XXXX despite the urgency of the matter and their prior mistake. 

I have made every effort to follow proper procedures. I updated my information multiple times, submitted the required documents, and registered my vehicle in Arizona with Ally 's documented approval. I should not be penalized for Allys failure to close the California title, their improper mailing of the title, or their conflicting and inaccurate guidance. I am now without a title, facing unjust registration fees, and at risk of further legal and logistical issues.

Company response to consumer: Closed with explanation