Consumer complaint received 2024-03-27 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: ALLY FINANCIAL INC.
State: DE

Complaint narrative:
Dear Regulators, For the Consumer Financial Protection Bureau, this complaint is against Ally Bank FDIC Cert # XXXX address Ally Financial Inc XXXX XXXX XXXX XXXX KY XXXX Phone XXXX Partnered with the dealership XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX NJ XXXX Employee ID XXXX Phone XXXX with combined efforts of Unfair Deceptive Abuse Act Practices with Sales transaction on a XXXX XXXX XXXX XXXX  4dr Rear-Wh Serial Number VIN : XXXX. On XX/XX/XXXX, the contract with Purchaser XXXX XXXX, who resides at XXXX XXXX XXXX XXXX XXXX XXXX XXXX DE XXXX XXXX, was signed. The contract has several Unfair Sales Practices with XXXX XXXX '' XXXX with XXXX XXXX and Unfair Deceptive Abuse Act Practices with Ally Bank & XXXX XXXX. 

The Unfair Deceptive Abuse Act Practices, Unfair Sales Practices, and Truth in Lending Violation will review the following : Credit risk is the risk to current or projected financial condition and resilience arising from an obligor 's failure to meet the terms of any contract with the bank or otherwise perform as agreed. The Obligee, XXXX XXXX, was a financially unsophisticated individual or someone vulnerable to financial abuse. Young people needed to fully understand the terms and conditions of XXXX XXXX and Ally Bank as the finance company. 

The obligee Credit was run 16 times with XXXX XXXX and others, which is outlined within the document, and credit scores pre-purchase of XXXX, XXXX, and XXXX according to XXXX Score XXXX on XX/XX/XXXX and post-purchase XXXX, XXXX, and XXXX on XXXX and a XXXX Score XXXX Auto Score averaging very good and reasonable in all three categories. With a 17.59 APR and a credit score of over 700, the obligee questioned the APR, and XXXX responded, " Credit Profile is thin, and Ally Bank is the only one able to service the loan. '' According to Ally Bank https : //www.ally.com/auto/car-payment-calculator/Financial Annual Percentage Rate ( APR ) APR is the cost you pay each year for financing, which includes finance charges and other fees. 
Credit Score Average rate for new cars Average rate for used cars 720 or above 5.61 % 7.73 % 660-719 7.35 % 10.26 % 620-659 8.86 % 12.97 % 580-619 10.40 % 15.98 % 579 or below 12.50 % According to Ally Bank, Profit margin acceptance would have given the obligee an APR of around 9.59 %. According to the contract, the XXXX XXXX XXXX XXXX 4dr Rear-Wh Serial Number VIN : XXXX. The Annual Percentage Rate 17.59 % The cost of Credit is a yearly rate that conflicts with Ally Bank. Finance Charge {$24000.00}. The amount financed was {$37000.00}, with the total payments after a 72-month term with a {$3000.00} down payment total of {$64000.00} with a 75-month term and a {$820.00} Car payment. The profit margins place the obligee at a severe credit risk due to not complying with the website 's terms. According to the contract, the total profit of the entire loan is 57.616 %. The advertising price of the vehicle was {$25000.00} with over a XXXX increase in fees, which the obligee needed to learn. The fees were included : Ally Service Contract, FLex protection, Downc ETCH, Ally Appearance, and Ally Dent Protection, paid to others on the obligee 's behalf, which was {$4400.00} minus Registration and Delaware Doc Fee. 

With the Unfair Sales Practices : XXXX XXXX needed to fully explain the numbers in the contract, which required to be given in full detail with a price increase. XXXX told the obligee that the payment would be around $ XXXX/month. As XXXX XXXX XXXX waited patiently for the outcome, the car increased in price with additional fees unexplained, violating the Truth in Lending Act ( TILA ) ; creditors must provide specific disclosures to borrowers. The amount a person suffered due to the creditor 's failure was over 8 %, which increased his debt-to-income ratio, XXXX resilient Score, and limited access to upcoming credit increases due to the overall amount owed on the vehicle. The statutory damages include a finance charge double the APR, according to the financial institution. XXXX XXXX Failed to disclose the following. 
Amount financed Finance charge Payment schedule Total of payments Annual percentage rate Security interest disclosures. 
According to the TILA, the creditors are liable for these violations, regardless of intent. The obligee was targeted due to the vehicle in its class. XXXX XXXX was sold on the eagerness to obtain the vehicle, and the dealership and Financial institution sold the car with the intent of profit gain of sale. 
When XXXX XXXX made contact on XX/XX/XXXX to question unexplained charges, the salesperson could not deliver a clear direction, only extra fees for immediate, which the obligee did not request. When the advocate XXXX XXXX XXXX, founder of XXXX XXXX XXXX XXXX XXXX Advocate for the obligee, questioned XXXX, the XXXX General Finance Manager, regarding the uncertainties of the contract, profit margins, unknown charges, and terms, which will be later explained in the complaint, the feedback was Ally Bank was the only one to seek the opportunity to finance the loan. 

On XX/XX/XXXX, XXXX contacted the obligee and stated, " He had good news. '' On XX/XX/XXXX, XXXX XXXX may want to finance the loan. When the obligee requested new agreement terms numbers to be sent via email for review, XXXX 's response was " unable to send information over for a review and requesting an in-person conversation. The obligee declined an in-person consultation for the following : On XX/XX/XXXX, XXXX XXXX declined the initial finance for the vehicle. The uncertainties were sent via the client; according to the conversation with the advocate, why did XXXX XXXX decide to post 29 days of sale to service the loan? Understanding Profit margins, the contract demonstrates why the loan was serviced with Ally and XXXX XXXX. XXXX stated via text that you could return the vehicle if you disagreed with the terms, and you could return the car. According to the current contract, the obligee has satisfied the first payment of {$820.00}. Regulators, the obligee was misled with terms and unexplained. According to the site APR, which is misleading, the profit margins and Unfair Sales have put the obligee at a credit risk. 

Regulators : If we continue to review the contract, I will address the following : Under the funding agreement, XXXX XXXX, if the Registration is not completed, the obligee must park the car until the registration process is completed. As of today, the Registration still needs to be fulfilled. Under the terms of the agreement section, The used vehicle recall Status Disclosure, Regulators review the following : XXXX XXXX states not responsible for vehicle recalls with the National Highway Traffic & Safety Administration, and the Non-Franchise dealer is subject to repair the car. However, I charged the obligee XXXX dollars for a XXXX report and requested a signature, which there is no place to sign ; however, I can go to the NSHTA for a free report to give to the obligee. 

Under the notice section of the contract, the content is read and signed without any feedback, with the following : XXXX XXXX may have overlooked, failed to observe, or otherwise missed specific cosmetic mechanical or structural damage to the vehicle. However, with the signed acknowledgment of the paid XXXX report, the obligee was advised of the alleged damage and was given a price discount. 

The details provided in this complaint, supported by documentary evidence and witness accounts, highlight a concerning pattern of behavior that not only undermines consumer trust but also violates established financial regulations designed to protect consumers. Consumer Affairs must take decisive action to address these issues, rectify the harm done to XXXX XXXX, and prevent similar situations from occurring in the future. Requesting a full investigation of practices and explained terms and fees. 
Thank you, regulators, for the full review and investigation. 

XXXX XXXX XXXX, founder of XXXX XXXX XXXX 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 explanation