Consumer complaint received 2025-12-24 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Problem with fees charged
Company: ALLY FINANCIAL INC.
State: IL

Complaint narrative:
1. Fraudulent Contract & " Total Loss '' Sale ( FTC Holder Rule ) This transaction was poisoned from the start. I was sold a vehicle represented as " Certified Pre-Owned '' ( CPO ) which was, in fact, a Total Loss vehicle with negative value. The dealership has failed to respond to previous complaints. Therefore, under the FTC Holder Rule ( asserted in the contract ), Ally Financial is subject to all claims I have against the seller. Because the asset was a Total Loss at the time of financing, the entire debt structure is invalid. I demand full rescission ( unwinding ) of the contract and the return of every dollar paid ( contract value approx. {$34000.00} ), as Ally financed a fraudulent asset that had no collateral value. 

2. Administrative Sabotage & Manufactured Default Ally Financial engaged in a pattern of " administrative sabotage '' where valid extension payments were accepted but then neutralized in their system. 

Good Faith Payments Ignored : While waiting for Ally to process my extension request in late XXXX, I continued to make good-faith payments, including {$100.00} in XXXX and over {$500.00} in XXXX. Ally accepted these funds but refused to finalize the extension until it was too late to help me. 

The " XXXX Trap '' ( Bad Faith Delay ) : I requested an extension in XX/XX/XXXX. Ally delayed the paperwork for XXXX months, finally issuing the approval on XX/XX/XXXX. 

The Trap : The agreement demanded an immediate fee of {$240.00} ( which I paid that same day ) but set the next full payment due date for XX/XX/XXXX, XXXX 24 hours later. 

The Result : By holding the approval until the day before the next installment was due, Ally made it mathematically impossible for me to stay current. This engineered failure resulted in false 30-60 day late marks on my credit report for XXXX XXXX, even though I had just paid the extension fee. 

The XX/XX/XXXX Sabotage : Earlier in the year, on XX/XX/XXXX, Ally offered an extension if I paid {$260.00}. I paid {$270.00} on XX/XX/XXXX. Immediately upon receipt, Allys logs show multiple " {$0.00} Reallocations, '' indicating a systemic override that voided the extension I had just purchased. 

3. Willful Violation of the FTC Holder Rule ( Warranty Refund ) The Violation : I cancelled a {$2500.00} service contract in XX/XX/XXXX. When I contacted Ally to have this principal removed from my balance, Ally explicitly refused, stating they would not credit my account until they received the funds from the dealership. 

The Law : This refusal violates the FTC Holder Rule ( 16 C.F.R. 433.2 ). Ally can not condition my credit on their ability to collect from a third party. I have attached screenshots of Ally 's refusal to honor this legal obligation.

Hidden Disclosures : Additionally, Ally provided me with incomplete contract copies that omitted Page 1, hiding the federally required Truth-In-Lending Act ( TILA ) disclosures.

4. Misleading Repossession Communications While my account was allegedly behind ( solely due to the administrative errors described above ), Ally sent conflicting messages regarding amounts due. On the same day repossession procedures were active in XX/XX/XXXX, I received an email stating I " may still qualify for help. '' This constituted Unfair Collection Conduct and a violation of FTC Act 5, as the mixed signals deprived me of a meaningful opportunity to cure the debt before the seizure.

5. Resolution Demanded The repossession was the result of a manufactured default on a fraudulent contract.

Contract Rescission : Because the vehicle was a Total Loss sold as CPO, the contract ( valued at approx. {$34000.00} ) was fraudulent from inception. I demand FULL RESCISSION of the contract and the return of all principal and interest payments made. 

Correction of Default : Even if the contract were valid, I was never legally in default. If the {$2500.00} warranty refund had been credited AND the extensions properly applied ( accounting for my XXXX payments ), I would have been ahead of schedule. 

I demand the immediate removal of the Ally Financial tradeline from my credit report as the debt is invalid.

Company response to consumer: Closed with explanation