Consumer complaint received 2025-10-05 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with the interest rate
Company: ALLY FINANCIAL INC.
State: TX

Complaint narrative:
I am submitting this complaint regarding what I believe to be predatory, discriminatory, and unfair auto lending practices by Ally Bank in connection with a loan I entered into in XX/XX/XXXX for a used XXXX XXXX XXXX purchased through XXXX XXXX XXXX in XXXX, Maine. 

The original vehicle price was {$16000.00}, yet the total cost of the loan is {$28000.00} after interest and add-ons. This is nearly double the vehicles value and reflects an exploitative loan structure that has placed me under significant financial strain. The loan has a 12.49 % APR, a {$410.00} monthly payment, and a XXXX termdespite a {$3500.00} down payment and a wealthy co-signer with strong credit. The remaining balance is approximately {$12000.00}, and I have already paid nearly {$5800.00} toward the loan. 

The contract includes more than {$5300.00} in add-ons that were rolled into the financed amount, including a {$3500.00} service contract, a {$640.00} documentation fee, XXXX insurance, and miscellaneous fees. These charges were not clearly presented as optional at signing, and because they were financed at 12.49 % APR, they have significantly inflated the overall loan cost. I was sold GAP insurance for this XXXX vehicle, which was also financed at the contract XXXX. At the time, I was not informed that I could obtain GAP coverage independently at a lower cost. For a vehicle of this age, the coverage offers limited benefit, and its inclusion reflects high-pressure sales and potentially deceptive add-on practices. 

The contract was executed at XXXX XXXX, leaving no realistic opportunity to review terms or explore alternatives. Maine law provides no cooling-off period, so I was locked into the loan immediately. Since then, I have spent {$1200.00} on brakes, {$2000.00} on maintenance, {$600.00} on tires, {$2000.00} on repairs, and face {$900.00} more in pending repairsover {$6700.00} in totalon a car that already carries an inflated loan balance. 

I am a full-time student, and despite my limited income, I have remained current on all payments. I reached out to Ally Bank multiple times to explore extensions or refinancing options but was provided no meaningful assistance. This refusal to offer relief, combined with the loan structure, has left me trapped in an unaffordable situation with no viable options to escape the debt. 

Importantly, I am an XXXX borrower, and Ally Bank has previously been ordered by the CFPB and the Department of Justice to pay {$80.00} XXXX in damages for discriminatory auto lending practices that disproportionately harmed XXXX, XXXX, and XXXX borrowers. The high interest rate I receiveddespite the vehicles age, my co-signers strong financial standing, and a substantial down paymentraises serious concerns that similar discriminatory pricing patterns XXXX have affected my loan. I urge the CFPB to investigate whether my loan reflects the same practices identified in prior enforcement actions against Ally. 

In total, this loan exhibits multiple red flags that align with patterns the CFPB has previously targeted : The total cost far exceeds the cars value. 
High APR despite lower risk factors. 
Excessive add-ons financed at interest. 
XXXX insurance misrepresented or overpriced. 
Late-night signing with no cooling-off period. 
Long loan term on an old car. 
Refusal to offer hardship or refinancing despite good payment history. 
Allys documented history of discriminatory pricing impacting XXXX borrowers. 

This situation has created ongoing financial hardship, despite my consistent good-faith efforts to meet my obligations.

Company response to consumer: Closed with explanation