Consumer complaint received 2026-05-19 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: ALLY FINANCIAL INC.
State: UT

Complaint narrative:
Company : Ally Financial / Ally Auto -- - On XX/XX/year>, I received an official email from Ally Auto confirming that my auto account had been paid off, the XXXX had been released, and the title had been mailed to the finance company that submitted the payoff. The email stated I would receive a letter within XXXX days confirming the account was paid in full. Two days later, on XX/XX/year>, Ally sent me a Settlement Options Offer demanding {$27000.00}, offering either a lump sum payment of {$8100.00} or XXXX installment payments of {$250.00}. Ally 's own communication directly contradicts this collection demand. I am a co-borrower on this account. The vehicle was paid off through a redemption/refinancing loan by a third-party finance company, which Ally confirmed in their XX/XX/XXXX email. Despite this, Ally is now attempting to collect a deficiency balance from me that their own records indicate does not exist. I believe this constitutes a deceptive and unfair debt collection practice in violation of the Fair Debt Collection Practices Act ( FDCPA ) and potentially the Consumer Financial Protection Act. I have reviewed the CFPB Consumer Complaint Database and found multiple complaints filed in XXXX against Ally Financial with the identical issue category : " Debt collection / Auto debt / Attempts to collect debt not owed / Debt was paid. '' Specifically : - Complaint ID XXXX ( filed XX/XX/year> ) : Ally attempted to collect on an auto account that had already been charged off and paid in full, in alleged violation of the FDCPA and FCRA. - Complaint ID XXXX ( filed XXXX ) : Same issue category auto debt collection on a debt already paid. - Complaint ID XXXX ( filed XXXX ) : Same issue category auto debt collection on a debt already paid. - Complaint ID XXXX ( filed XXXX ) : Same issue category auto debt collection on a debt already paid. In each case, Ally responded by closing the complaint with a private explanation and chose not to provide a public response. This pattern of behavior across multiple consumers in XXXX strongly suggests a systemic failure in Ally 's internal processes for reconciling payoffs with their collections department, rather than isolated clerical errors. I respectfully request that the CFPB treat this as a pattern-of-practice issue. I have sent a formal written dispute to Ally via certified mail requesting full account documentation, including all records related to the payoff, title transfer, and lien release. I have retained a copy of the XX/XX/year> Ally Auto email confirming the payoff as evidence. I am requesting that the CFPB : XXXX. Investigate the direct contradiction between Ally 's XX/XX/year> payoff confirmation and their XX/XX/year> collection demand XXXX. Investigate whether this represents a systemic pattern of collecting on satisfied auto debts across multiple consumers XXXX. Require Ally to provide full documentation of this account XXXX. Ensure all collection activity on this account is halted pending resolution XXXX. Take appropriate enforcement action if Ally is found to be collecting debts that have already been satisfied

Company response to consumer: Closed with explanation