Consumer complaint received 2026-07-08 00:00:00
Product: Vehicle loan or lease — Lease
Issue: Problems at the end of the loan or lease — Excess mileage, damage, or wear fees, or other problem after the lease is finished
Company: ALLY FINANCIAL INC.
State: TX

Complaint narrative:
Company : Ally Financial LLC Account Number : XXXX Vehicle : XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX I am an XXXX XXXX XXXX XXXX XXXX XXXX XXXX submitting this complaint regarding Ally Financials handling of my leased XXXX following a not-at-fault accident that resulted in my vehicle being declared a total loss. I respectfully request that the Consumer Financial Protection Bureau investigate Ally Financials handling of my account, its refusal to provide transparency regarding the insurance settlement, and whether its disclosures and servicing practices complied with applicable consumer financial protection laws. I leased my XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX through XXXX XXXX, XXXX. The lease was later assigned to Ally Financial, and I made all of my lease payments directly to Ally. As an active-duty service member, leasing appeared to be a practical financial decision because of the flexibility it provides military members who frequently relocate due XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) orders and other military obligations. According to my lease agreement : * Gross Capitalized Cost : {$48000.00} * Agreed Vehicle Value : {$45000.00} * Capitalized Cost Reduction : {$13000.00} * Cash Paid at Signing : {$7700.00} * Federal EV Incentive Applied : {$7500.00} * Adjusted Capitalized Cost : {$34000.00} * Monthly Payment : {$420.00} * Lease Term : 36 months I made more than XXXX monthly lease payments before my vehicle was declared a total loss in a not-at-fault accident. On XX/XX/XXXX, XXXX notified me that it had issued a payment of {$46000.00} directly to Ally Financial for my total-loss claim. After Ally received these funds, I repeatedly requested a complete accounting of my account. During a three-way telephone call involving Ally Financial, XXXX, and myself, I specifically requested : * My payoff amount ; * How the insurance proceeds were applied ; * Whether any surplus existed after my lease obligation was satisfied. Ally refused to provide this information. I then submitted a written request by email asking for a detailed accounting of the payoff calculation, the application of the insurance proceeds, and whether any surplus existed. Ally did not provide the detailed accounting I requested. When I reviewed my Ally account, I found numerous unexplained accounting entries labeled only as Reallocations. These entries include transactions involving : * {$46000.00} * {$13000.00} * {$13000.00} None of these entries are explained, and Ally has never informed me what these amounts represent or how they relate to my insurance settlement. My online account now reflects : * Outstanding Balance : {$0.00} * Balance Paid : {$15000.00} However, these figures still do not explain how the insurance proceeds were applied or whether any excess funds remained after satisfying my lease obligation. As a consumer, I believed that making a substantial down payment would reduce my financial obligation and benefit me throughout the lease. I did not understand that, in the event my leased vehicle was declared a total loss, I could lose my substantial down payment, lose the benefit of the lease payments I had already made, and receive nothing from the insurance settlement while the leasing company retained the insurance proceeds. Although the lease contains legal provisions regarding total-loss settlements, I do not believe these consequences were clearly and prominently disclosed in a manner that an ordinary consumer could reasonably understand. XXXX leasing process is completed primarily through a digital application, and I do not believe consumers are adequately informed that a significant capitalized cost reduction may provide no financial benefit if the vehicle is declared a total loss. Had these consequences been clearly explained, I would not have made such a substantial down payment. I would have made a significantly smaller down payment or pursued another financing option. As an active-duty service member, I am particularly concerned that these lease structures may disproportionately affect military consumers. Leasing is often viewed as an attractive option because of the flexibility it offers service members. However, I believe many military families may unknowingly place substantial amounts of money down on leased vehicles without understanding the financial consequences if the vehicle is declared a total loss. This accident was not my fault, yet I still had to pay approximately {$2000.00} out of my own pocket to obtain replacement transportation. This financial burden occurred while Ally retained the insurance proceeds and refused to provide me with a complete accounting of how those proceeds were applied. I believe consumers deserve complete transparency regarding how insurance proceeds are applied following a total-loss claim and deserve clear disclosures before entering into a lease that explain the consequences of making substantial upfront payments.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation