Consumer complaint received 2025-12-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem related to refinancing
Company: ALLY FINANCIAL INC.
State: VA

Complaint narrative:
Company : Ally Financial Product : Auto loan Issue : Loan servicing, lien release, title handling, credit reporting dispute Consumer location : Virginia I am submitting this complaint to escalate a serious servicing and title handling issue involving Ally Financial. Ally improperly released the lien on my vehicle, mishandled the title, and is now refusing to resolve the matter in good faith. Most recently, a representative terminated a call when I attempted to discuss settlement and dispute resolution. 

The issue began when Ally accepted a payoff that was sent by XXXX in error. I did not sell my vehicle and remained in possession of it at all times. Based on that erroneous payoff, Ally released the lien and mailed the title. Ally later refunded the payoff to XXXX, acknowledging that the transaction was invalid, but failed to correct the lien before further title actions occurred. 

As a result of Allys failure to timely correct its error, my vehicle was improperly transferred out of state and titled in Montana. After extensive effort on my part to resolve the issue, Virginia XXXX has now restored the registration and issued a clean Virginia title in my name with no lien recorded. I currently possess that title. 

Despite this, Ally is refusing to negotiate any resolution and is demanding that I sign a Power of Attorney so that they can take the title back and re-record a lien. Ally has not offered any compensation or loan adjustment for the harm caused by its error. I have clearly stated that I am willing to cooperate only as part of a written settlement agreement, but Ally has refused to engage. During my most recent call with Allys escalation team, the representative ended the call after I declined to sign a POA without settlement terms. 

Allys conduct is inappropriate and harmful. The lien was released due to Allys own error. The state of Virginia lawfully issued a clean title based on that release. Ally is now attempting to retroactively cure its mistake by pressuring me to surrender the title without addressing the damages I incurred or providing written assurances regarding credit reporting. 

As a direct result of Allys actions, I was forced to purchase a second vehicle due to legal uncertainty regarding the first vehicle. I also incurred additional insurance and registration costs, lost the ability to use or sell the original vehicle for a period of time, and spent significant time and effort resolving a multistate title issue that was not of my making. I also face ongoing credit risk because Ally continues to treat the account as enforceable while no lien exists on the title. 

I have consulted with legal counsel regarding this matter and am seeking compensation for the financial damages caused by Allys errors. I am willing to resolve this cooperatively, but Allys refusal to negotiate and its handling of this dispute leave me no choice but to escalate. 

I am requesting that Ally be required to respond substantively, acknowledge the improper lien release and title handling, cease coercive demands for a Power of Attorney, engage in good-faith settlement discussions, confirm that no negative credit reporting has occurred or will occur, and assign a senior case manager with authority to resolve this matter. 

I can provide documentation upon request, including the clean Virginia title, a timeline of events, written correspondence, and proof of financial damages

Company response to consumer: Closed with explanation