Consumer complaint received 2025-04-13 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: ALLY FINANCIAL INC.
State: NY

Complaint narrative:
Subject : CFPB Complaint Inability to Process Formal Chargeback Request under the 540 Rule Dear CFPB Representative, I am submitting this complaint because my attempts to resolve a disputed charge with Ally Credit Card have been unsatisfactory, and the bank is not allowing me to submit a formal chargeback directly. Below, I summarize the issue and provide context for my complaint : I disputed the charge of {$2100.00} billed on XX/XX/year>, for services rendered by XXXX XXXX XXXX XXXX I contend that this charge contains numerous billing errorsincluding charges for services not rendered, inconsistencies in billing timeframes, and questionable consultation fees. I have attached a detailed Formal Chargeback letter that lays out these specific discrepancies. 

Additionally, I have drafted a separate letter requesting this specific formal chargeback, invoking the special XXXX chargeback rule. This rule, as I understand it, supports a chargeback when there are clear discrepancies and errors in billing practices. In this special request letter, I expressly request that this ongoing dispute be processed under this rule and that all disputed charges be reversed. 

Despite my efforts, Ally Credit Card has responded with a generic denial, claiming that after a reasonable investigation the charge is valid and they have said that no further dispute is allowed because too much time has elapsed. They have not however addressed the detailed discrepancies I have documented. 

I am asking for the CFPBs assistance to : Review my attached documentation ( both the detailed formal chargeback letter and the special request letter ). Help ensure that the special chargeback ( XXXX ) rule is applied properly, and that my dispute is processed correctly given the evidence provided. Investigate the banks handling of my dispute and review their investigation process which appears to ignore critical evidence and specific discrepancies in the billing. 
Thank you for your attention and I appreciate your assistance in investigating this matter further. 
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Under Mastercards guidelines, consumers are entitled to dispute a charge within XXXX  days under what is commonly referred to as the XXXX chargeback rule. This right is further protected by Regulation Z of the Truth in Lending Act and Article XXXX of the Uniform Commercial Code. Specifically, XXXX allows chargebacks within this window if services were not rendered or were received in a significantly unsatisfactory manner. 
This dispute concerns a failure to provide the services I was promised. I paid for services I either did not receive or received in a deficient and unacceptable way. This qualifies as both a billing error and a case of services not rendered. 
I respectfully request that the CFPB instruct Ally CreditXXXX XXXX to process this as a formal chargeback, governed by the appropriate consumer protection laws. A formal chargeback requires a more rigorous evaluationsomething Ally has failed to provide. They have not supplied supporting evidence, have not addressed the specific issues raised in my dispute, and never informed me of any appeal process or timeframe, as required by law. 
Furthermore, Ally reported me to credit bureaus for lateness during the time my dispute was under review, damaging my credit. They are now threatening to suspend my account ( and have done so ) if I do not pay the very charge I have contestedwhile also harassing me daily with collection calls, texts, and emails. 
I ask the CFPB to ensure my case is properly investigated as a formal chargeback under the correct legal criteria, and that Ally is held accountable for disregarding consumer protections, mishandling my dispute, and violating my rights.

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