Consumer complaint received 2024-01-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: ALLY FINANCIAL INC.
State: OH

Complaint narrative:
On XX/XX/XXXX, I concluded a lease trade-in for my account ( XXXX ) with XXXX  XXXX XXXX of XXXX , Ohio. The following day, XX/XX/XXXX, I received a communication from Ally Financial regarding a late payment. I promptly clarified that the vehicle had been sold the previous day. Despite this, on XX/XX/XXXX, and continuing through XX/XX/XXXX, I received multiple subsequent calls from Ally Financial, each indicating a late payment. I repeatedly informed them of the vehicle 's sale. 

On XX/XX/XXXX, I contacted XXXX XXXX XXXX of XXXX for more information regarding the payment status. They confirmed that Check XXXX for {$44000.00} had been dispatched to Ally Financial via XXXX  ( tracking number XXXX ) and was received on XX/XX/XXXX, at XXXX XXXX  ET. Later that day, I relayed this information to Ally Financial 's collections department, which led to a cessation of the repeated calls. 

By XX/XX/XXXX, my Ally Financial account ( XXXX ) reflected a {$0.00} balance, indicating full payment and no outstanding dues. However, on XX/XX/XXXX, a XXXX  alert notified me of a XXXX-point drop in my XXXX credit score due to a " 30 Day Late '' report by Ally Financial. Upon checking, I found the account marked as 'Past Due ' with a balance of {$19000.00} and 26 remaining payments. Upon contacting Ally Financial, I was informed of system downtimes preventing immediate resolution. 

The situation worsened on XX/XX/XXXX, with additional XXXX  alerts indicating further drops in my credit scores. After an extensive three-hour call with Ally Financial , I was informed that the payment check had been canceled by the dealer, necessitating further contact with XXXX XXXX XXXX XXXX XXXX. On XX/XX/XXXX, after their investigation, the dealership confirmed that the check had cleared and was neither returned nor canceled. 

The company responded with the following information, admitting fault, on XX/XX/XXXX ( summarized ) : " The correspondence addresses XXXX XXXX 's lease agreement with Ally XXXX for a XXXX XXXX XXXX XXXX, initiated on XX/XX/XXXX, through XXXX XXXX XXXX, with monthly payments of {$760.00}. The document acknowledges that the agreement was later assigned to Ally Bank Lease Trust and highlights a prior communication on XX/XX/XXXX, detailing corrections to the contract, indicating some initially incorrect or omitted information. 

Further, it provides a detailed payment history up to XX/XX/XXXX, urging XXXX XXXX to report any discrepancies between his records and the provided history for further investigation. The history outlines the receipt of payoff funds from XXXX XXXX XXXX dealership on XX/XX/XXXX, and the initiation of the dealer buyout process. It also mentions the issue of the account being reported as over 30 days past due to the late XX/XX/XXXX, payment. 

The response concludes with Ally 's action to request consumer credit reporting agencies to update their records to reflect the account as zero payments over 30 days past due. It encourages XXXX XXXX to verify these updates with the agencies after 30 days and provides contact information for further assistance or inquiries. The communication reflects a structured approach by Ally to address the concerns raised, offering transparency about the events and steps taken. '' In XX/XX/XXXX, I acknowledge the detailed investigation conducted and the subsequent corrections made to my consumer credit reports. Despite these efforts, the period during which incorrect information was present has inflicted immediate and significant damage to my entire credit portfolio. This situation has led to a distressing reduction in my financial flexibility and credibility. 

Now, in XXXX, XXXX, I am still suffering the damage from this. During the time the erroneous data remained on my reports, I have encountered several detrimental effects. Notably, 90 % of my credit card issuers reduced my available credit, directly impacting my financial maneuverability. Additionally, my XXXX  scores experienced a substantial average drop of over 100 points. This decline in credit score is not just a number ; it represents a setback in my financial reputation, current and future borrowing capabilities. 

Although my records have been updated, the ramifications persist. The inability to reinstate my previous credit limits, due to the past-due reports, has further strained my financial health. This discrepancy has shifted my credit standing from good to poor, This single incident has effectively erased years of diligent financial management and will require a prolonged period to recuperate fully. The enduring impact on my creditworthiness is not just a temporary inconvenience but a long-term hindrance that will affect my financial decisions and opportunities for years to come. The gravity of this situation can not be understated, as it undermines the trust and reliability I have strived to build with financial institutions over many years. 

Furthermore, the consequences of this erroneous and grossly negligent reporting by Ally Financial have escalated to a critical point, severely undermining my financial stability. As a direct result of the cut limits instigated by the false 30-day late payment, my credit cards are now being systematically closed. This action has not only buried me under an insurmountable burden but also effectively barred me from obtaining new credit, trapping me in a vicious cycle of diminishing financial resources. 

The subsequent cutting of limits and closing of cards has had a profound and distressing impact on my mental health, financial health, and the stability of my family. Over the last nine months, I have faced a denial of over {$200000.00} in credit. Each attempt to rectify the situationwhether paying off a card or reducing the balancehas been met with immediate closure or further reduction of my credit limit, maintaining a suffocating level of over 95 % utilization. The negative mark, which still lingers on certain reports inaccessible to me as a consumer, has thwarted my ability to leverage equity in my home, as banks continue to receive this erroneous information. Consequently, my XXXX mortgage score has plummeted into the 500s, reflecting the severe and ongoing repercussions of this single report. 

Amidst this financial turmoil, I find myself in a state of despair. Despite having no late payments, only cut limits, and closed cards, I feel increasingly trapped and powerless. The psychological toll is immense ; I am enveloped in a sense of XXXX and entrapment, with no apparent avenue for relief or support. The weight of this situation bears heavily upon me, leaving me desperate for a solution to help my family and restore the financial stability and security we once knew.

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