Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
Ally Financial Inc. has reached a near $20 million settlement deal to resolve a class action lawsuit claiming that the company hit vehicle owners with hidden fees that were allegedly not listed in their lease-to-own agreements.
The consumers who filed the Ally Financial class action lawsuit have asked a Florida federal judge to approve a $19.7 million settlement agreement.
In the deal, $2.95 million are allocated for attorney fees. The rest of the funds will be paid to Class Members to compensate for 100 percent of the hidden fees they were allegedly charged.
These payments will average around $238, reportedly. Additionally, the Ally Financial class action settlement will include a $5,000 award for class representative Robert Schreiber, who brought forward the Ally Financial fees class action lawsuit.
The payment rate was allegedly determined from the records available from agreements made with Ally, which showed that consumers paid between $50 and $1,000 in hidden fees. The average of these fees was determined to be $238.06.
According to Schreiber, the deal is an “exceptional result for the class. It offers class members benefits approaching or equivalent to a complete trial victory without the risks, costs, and delay of continued litigation, a trial, and possibly an appeal.”
The Ally Financial class action settlement is the result of more than two years of legal back and forth, reportedly.
Schreiber initially brought the Ally vehicle lease class action lawsuit forward in 2014. U.S. District Judge Darrin P. Gayles had ordered the Ally Financial class action lawsuit to arbitration upon Ally’s request, but then reversed that decision after a challenge from Schreiber.
As a result of this settlement agreement, Schreiber seeks to certify a Class of consumers around the country who purchased vehicles and were hit with additional dealer and documentary fees that were not included in written agreements. This Class will allegedly include consumers who purchased vehicles as far back as 2009.
The initial Ally Financial hidden fees class action lawsuit alleged that Ally Financial made a practice of charging consumers hidden fees when they signed up for SmartLease Contracts.
The SmartLease program gave drivers the opportunity to purchase the vehicle they had been leasing at the end of their lease. However, consumers claimed that if they did want to purchase a vehicle, they had to pay fees not delineated in the SmartLease contract. In Schreiber’s case, these fees allegedly totaled $400.
Schreiber and the other affected consumers claim that the hidden fees that they were required to pay represent a breach of contract on the part of Ally Financial, and a violation of the federal Consumer Leasing Act.
Ally continues to deny any wrongdoing on its part, saying that “Ally continues to believe that its customers experience is best in class, but also believes that settling the case at this time is in the best interest of all parties.”
Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.
Schreiber and the proposed Class are represented by Peter Prieto, John Gravante, Matthew P. Weinshall and Alissa Del Riego of Podhurst Orseck PA and Daniel Alberstone, Roland Tellis, and Jonas P. Mann of Baron & Budd PC.
The Ally Financial Hidden Fees Class Action Lawsuit is Schreiber v. Ally Financial Inc., Case No. 1:14-cv-22069, in the U.S. District Court for the Southern District of Florida.
UPDATE: August 2018, the Ally Financial hidden auto leasing fees class action settlement is now open.Click here to file a claim.
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
28 thoughts onAlly Financial Reaches $20M Hidden Fees Class Action Settlement
I bought a truck from alley in 2018 a Dodge Ram they charge me a 1000 a month truck payment and I could not afford to pay on it no more and they pick the truck up and charge me 25000 dollars extra after it was not in my possession
They have screwed me over also. Marking payments late, a year after I had requested to change my payment date. They said I didn’t. Didn’t send statements, and wouldn’t let me view my statements online. Tried triple charging me for late fees. Add me. I’m gonna get um regardless
Same here.. I received notice of the action taken but I haven’t heard anything else. Does anyone know how I can collect my award?
I recieved a letter being included in the Class Action suit. It told me to only respond if I wanted out of the suit. I haven’t heard anything yet. I did purchase a car during this time with Ally.
I am currently being sued by Ally for non payment of loan on a motor home I purchased in 2013, it was stolen and then Allly located it, repossessed it and resold it, now they want me to pay an outrageous amount. Guess I will have to hire an attorney.
I also received a notice of the class action lawsuit and it said I didn’t have to do anything and I would be notified of outcome. Have not heard anything, except I was still included.
i believe i am in this lawsuit how do i claim the settlement
They haven’t approved it yet. The paper states The court will hold a final approval and fairness hearing on August 9, 2021 at 1:30 PM we do not have to attend the hearing to receive the benefit of the settlement but we may attend if we choose. That’s when we will be notified of the outcome
I received a letter that I was involved in the lawsuit but haven’t heard anything more
Has anyone received a settlement check? Do you know who to call to inquire?
I leased a 2012 Jeep Grand Cherokee and at the end of the lease when I inquired about the buy out the buy out price was exactly $2500 higher then the outlined price on my lease papers. I had an Ally rep provide me with a copy of the lease they have and line 9 of the agreement the price I had on my copy was crossed out with a higher price penciled in with my initials next to it. Neither the dealership or their Ally representative could provide an honest answer as to how this happened. Both sides pushed blame on the other.
After weeks of discussion I pulled in my lawyer and the owner of the dealership. They did agree to sell me for what was originally outlined on my copy but only when my lawyer got involved.
Never will I ever do business with Ally or dealership that condone these type of practices.
I’m am curious as to when I will receive my settlement check.
I purchased a vehicle that was financed through Ally. My car was repoed then i got it back. Then it happened again less than a year later. I called to ask how much to get it back they agreed and i paid the amount. They lued and after the fact so many calls still no car. They sold my car and want me to pay the balance. They still have some of my things no one answered my calls. They played games.
I bought a car through Ally financial and did not miss for 3 solid years. They came back on me saying that I owed from the very first payment 3 years back. If this were the case, why is it I never showed a late payment. They wanted another 2500.00 from from me, I told them no come an get the car! Now I am being told that I am not the only elderly person they did this to. Help!
I just received a letter saying, I did not have to do anything. I had a lease with Ally in 2016, it was repossessed
I applied to become part of this suit because I leased a vehicle through Ally which I purchased through Ally at the end of the lease in 2011. It’s been nearly a year and a half and I’m yet to get any correspondents informing me of the settlement or a resulting payment. Curious what the status is.