Consumer complaint received 2025-08-29 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Closing your account — Can't close your account
Company: ALLY FINANCIAL INC.
State: GA

Complaint narrative:
This is not a duplicate account. This is a new account. 

Certified Mail Return Receipt Requested Ally Bank / Ally Credit Card Services Attn : Executive Customer Relations XXXX  XXXX XXXXXXXX XXXX  XXXX, NY XXXX Date : [ Insert Todays Date ] Re : Formal Dispute Ally Everyday Cash Back Account ending XXXX NOTICE OF DISPUTE & DEMAND FOR DOCUMENTATION This letter serves as my formal dispute under the Fair Credit Reporting Act ( 15 U.S.C. 1681i & 1681s-2 ) and the Fair Debt Collection Practices Act ( 15 U.S.C. 1692g ) regarding the continued reporting and handling of my Ally Everyday Cash Back credit card account. 

Your own correspondence ( dated XX/XX/XXXX & XX/XX/XXXX ) confirms : The account was charged off on XX/XX/XXXX. 

You sold the account to a third-party collection agency. 

Yet you continue reporting the tradeline as charged off with an outstanding balance each month to credit bureaus. 

This is unlawful and misleading. 

REQUESTED INFORMATION I demand the following documents and clarifications : Proof of Ownership & Assignment Identify the collection agency or debt buyer the account was sold.

Provide the chain of assignment, including the bill of sale, transfer agreements, and schedules that specifically list my alleged account.

1099-C Issuance Confirm whether a Form 1099-C ( Cancellation of Debt ) was filed with the IRS, and if so, the date of issuance and amount canceled.

Under IRS regulations, once a 1099-C is issued, the debt is considered canceled, and continued reporting of a balance may constitute fraud.

Date of First Delinquency ( DOFD ) Provide the original date of first delinquency that led to charge-off, pursuant to 15 U.S.C. 1681c ( a ) ( 4 ) ( 5 ).

Why is this account still reporting charging-off after the 90-day delinquency?

Explain why the account continues to be reported monthly as charged off despite having been sold.

Under FCRA 623 ( a ) ( 1 ) ( A ), furnishers must report accurately and completely. An account sold with no balance due to the creditor must reflect {$0.00} balance.

Balance, Interest, & Fees Explain why the tradeline continues to reflect a balance of {$1800.00} ( and additional interest ) despite the sale of the account.

If Ally no longer owns the debt, Ally can not legally add interest or report a continuing balance.

LEGAL BASIS FCRA 623 ( a ) ( 1 ) ( A ) : Information furnished must be accurate
and up to date.

FCRA 611 ( a ) ( 1 ) ( A ) : CRAs and furnishers must conduct a reasonable investigation when a consumer disputes.

15 U.S.C. 1692e & 1692f ( FDCPA ) : Prohibits false representations and unfair practices.

IRS Reg. 1.6050P-1 : Once a 1099-C is filed, a creditor has canceled the debt for tax purposes.

FTC COMPLAINT Be advised that I filed a formal report with the Federal Trade Commission ( Report XXXX XXXXXXXX ) on XX/XX/XXXX, citing Allys ongoing misreporting after the account was sold. 

This report has been shared with federal and state regulators. Continued misreporting after notice exposes Ally to liability under 15 U.S.C. 1681n/o and 15 U.S.C. 1692k.

DEMANDS Immediately update or delete the Ally tradeline from XXXX XXXX XXXX XXXX to reflect a {$0.00} balance and status as sold/closed, not charged off.

Provide all requested documentation within 30 days of receipt of this letter.

Confirm in writing the identity of the collection agency/debt buyer that purchased the account.

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