Consumer complaint received 2026-04-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with additional products or services purchased with the loan
Company: ALLY FINANCIAL INC.
State: TX

Complaint narrative:
On XX/XX/year>, I submitted cancellation requests for XXXX add-on products that were financed into my XXXX XXXX XXXX installment contract : XXXX in the amount of {$760.00} and a service warrantyXXXX in the amount of {$3200.00}. Both refunds should have been handled correctly and applied to the balance of my auto loan with the correct lienholder, Ally Financial. The service warranty refund was mishandled because the dealer submitted the cancellation using the wrong lienholder, XXXX XXXX, even though XXXX is not my lienholder and I do not have any account with XXXX. Because of the dealers error, the refund was sent based on incorrect lienholder information. I was informed that XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX had already processed the cancellation, and XXXX XXXX XXXX later helped correct the problem by sending a check to the correct lienholder, Ally Financial. The dealer did not correct the problem it caused and did not meaningfully respond to my calls and emails about fixing it. The XXXX refund has also been delayed and handled inconsistently. On XX/XX/year>, I contacted Classic Track, the XXXX company, and was told that the XXXX product had already been canceled, that I would receive a full refund, and that notice had been sent to the dealer on XX/XX/year>. Despite that, the dealer previously told me the XXXX refund was still in process because it was waiting on funds from the provider. I later received another email from the dealer stating that both my XXXX and service warranty cancellations had been processed effective XX/XX/year>, and that Ally Financial would process the XXXX refund because the cancellation form listed the reason as Trade In. I also want to clarify that the cancellation form was not created by me. It was sent to me by XXXX XXXX, XXXX of XXXX, with both products already selected and the cancellation reason already marked as trade in/ sold. I was told by XXXX that I only needed to sign the form and send it to the cancellation department, which I did. I relied on the dealers instructions and the form the dealer prepared. To the extent the dealer is now claiming that the selected cancellation reason affects how the XXXX refund is being processed, that reason was prefilled by the dealer, not chosen by me independently. I am also including Ally Financial in this complaint because I have not been able to get clear and timely information from Ally about whether the refunds were received, how they are being processed, when they will be applied, or whether my principal balance has been corrected. I have attempted to contact Ally by phone regarding the refund status, but I have had difficulty reaching the correct department and have not received a meaningful resolution. Since the dealer now claims the XXXX refund is in Allys hands, I want XXXX to review Allys role as well and help determine whether Ally has received the refund, whether Ally is properly processing it, and why my loan balance has still not been corrected. My complaint is that the dealer and Ally have not timely and properly handled cancellation refunds connected to my motor vehicle financing. The dealer caused the wrong-lienholder problem for the service warranty refund, failed to timely process the XXXX refund after notice from the provider, and gave inconsistent explanations. Ally has not provided clear information or a resolution about the status and application of the refunds. Because of these delays and errors, my principal balance has not been corrected as it should have been based on the XX/XX/year> cancellation date. I am requesting that XXXX review the actions of both the dealer and Ally Financial, determine the status of both refunds, ensure both canceled-product refunds are properly credited to Ally Financial and applied to my loan principal, make any account correction effective from the XX/XX/year> cancellation date, and require written confirmation showing the refund amounts, processing dates, and how each refund was handled.

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