Consumer complaint received 2025-08-12 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: ALLY FINANCIAL INC.
State: UT

Complaint narrative:
I am writing to file a formal complaint against Ally Bank regarding three unauthorized electronic fund transfers totaling {$5100.00} from an account on XX/XX/2025. These transactions occurred under severe duress and coercion by scammers. Ally Bank subsequently provided misleading information and mishandled an attempt to stop the payments. 

Detailed Account of Events : On XX/XX/2025, an individual impersonating the XXXX XXXX XXXX XXXXXXXX XXXX XXXX  contacted the account holder. The scammer used the police department 's actual phone number via spoofing. The scammer sent a forged arrest warrant and falsely claimed the account holder was in contempt of court for failing to appear for jury duty. The scammer threatened immediate arrest if the account holder did not comply with demands. Under this pressure and fear of arrest, the account holder authorized three fraudulent electronic fund transfers from an Ally Bank account, totaling {$5100.00}. 
Upon realizing this was a scam, the account holder immediately contacted Ally Bank to stop these transactions. An Ally Bank representative informed the account holder that stopping the transactions would require a {$15.00} fee per stop payment. As two of the transactions were for the same amount and recipient, the account holder was advised that only two stop payments totaling {$30.00} would be sufficient to stop all three. The account holder paid the {$30.00} based on this information, trusting that Ally would prevent the fraudulent transactions. 

However, when I followed up on XX/XX/2025, only one stop payment had been successfully applied, leaving some of the fraudulent transactions unprotected. It appears that Ally Bank may never have had the ability to stop these specific transactions, despite assurances and the fee paid. This misinformation and mishandling caused further financial risk and XXXX  during an already difficult and coercive situation. In fact, the Consumer Financial Protection Bureau says that financial institutions can not delay or avoid investigations by requiring burdensome documentation or by requiring customers to first resolve disputes with merchants.

Relevant Regulations and CFPB Guidance : These transactions should be classified as unauthorized electronic fund transfers ( EFTs ) under the Electronic Fund Transfer Act ( EFTA ) and Regulation E, specifically 12 CFR 1005.2 ( m ). The CFPB has provided guidance clarifying that if a consumer is fraudulently induced into sharing account access with a third party, the subsequent transfer is an unauthorized EFT. Furthermore, Comment 1005.2 ( m ) -3 clarifies that an unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery. The situation, where the account holder was coerced by threats and a forged warrant, falls squarely within this guidance. Regulation E also states that consumer negligence, such as being tricked into providing information, can not be used to impose greater liability than permitted by the regulation. 12 CFR 1005.6 ; Comment 6 ( b ) -2. The account holder 's actions, though involving providing information, were not a free and genuine authorization, but rather a direct result of being under duress.

Ally Bank 's actions in advising the account holder to pay for stop payments that were ineffective in preventing the fraudulent transfers are concerning. This misleading information about the services offered exacerbated the situation. The bank has a duty under Regulation E to investigate claims of unauthorized EFTs promptly upon receiving notice.

Supporting Documentation : Attached : Copies of the forged arrest warrant Attached : Chat transcripts with Ally Bank representatives discussing the stop payments. 

Police Report Case Number : XXXX ( Filed with XXXX XXXX XXXX XXXX XXXX  XXXX  on XX/XX/2025 ). 
Ally Bank Internal Investigation Case Number : XXXX.

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 monetary relief