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Ally Financial class action lawsuit overview:
- Who: Ally Financial is facing a class action lawsuit.
- Why: Ally Financial allegedly charges borrowers unlawful fees to complete the loan process.
- Where: The Ally Financial class action lawsuit was filed in Florida federal court.
Ally Financial charges borrowers unlawful fees in order to complete the loan process, according to an Ally Financial class action lawsuit filed July 19 in Florida federal court.
Plaintiff Karl Grossinger says he refinanced his home with Ally. When he began the financing process, Ally allegedly agreed to “lock” the offered mortgage interest rate for the loan he was seeking.
When the loan process was delayed through no fault of his own, Ally allegedly charged Grossinger a fee to continue to lock in the offered interest rate in violation of its own rate lock policies.
Ally Financial class action alleges bank improperly shifts blame for delays to borrowers
Typically, when a customer seeks a home mortgage or refinance, Ally will commit to fund the loan at a locked rate only if the loan closes within a specific period. The rate lock period is usually 30 to 90 days, the Ally Financial class action lawsuit explains.
If the closing does not take place within the rate lock period, it can be extended. If the delay is not due to the fault of the borrower, the bank is allegedly supposed to absorb the cost instead of requiring the borrower to pay the fee to extend the rate lock period.
“What happened to Mr. Grossinger is part of Defendants’ systematic effort to charge home loan and refinance borrowers fees to extend their mortgage interest rate lock periods when the Defendants, not the borrower, caused the need for that extension,” the Ally Financial class action lawsuit alleges.
Ally and its partner Better Mortgage Company allegedly shift the blame for delays to borrowers to justify charging rate lock extension fees, which can be about .0001 of the loan amount per day. Depending on the type of loan, these rate lock extension fees can be substantial, the Ally Financial class action lawsuit asserts.
Grossinger filed the Ally Financial class action lawsuit on behalf of himself and a proposed nationwide Class of persons who obtained an Ally Bank and/or Better Mortgage Company mortgage for a residential property in the last three years and were charged fees to extend a mortgage interest rate lock extension in violation of the defendants’ rate lock extension policy.
Ally is also facing a class action lawsuit alleging it wrongfully denies accounts to non-US citizens. The bank also settled an Ally Financial class action lawsuit that alleged it sent repossession notices to borrowers that did not comply with the relevant law.
What do you think about the allegations in the Ally Financial class action lawsuit? Join the discussion in the comments below!
Grossinger is represented by Ronald P. Weil and Marguerite C. Snyder of Weil Law Firm PA and Hirlye R. “Ryan” Lutz II and F. Jerome Tapley of Cory Watson PC.
The Ally Financial Class Action Lawsuit is Karl Grossinger v. Ally Financial Inc., et al., Case No. 1:22-cv-22228, in the U.S. District Court for the Southern District of Florida.
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114 thoughts onAlly Financial class action claims bank charges unlawful fees to complete loans
Please add…discrepancy in original contract.
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Ally wrongfully charged fees and in end result repossessed my car after 5 yrs of paying and paying late fees that weren’t late.
I was taken for a ride from these crooks, they repo my car after paying over 35K for a 2015 Chevy Malibu and when I paid them what was owed except for late fees which came to $1400 they took it and sold it now they are saying that I owe them more than what was owed when the car was taken. I received a letter stating that they accelerated the amount owed and how can they do that and the contract was over? Please help me as I am filing a case against them.
I have a 2018 Nissan Sentra been paying on for four years and still owe$ 18.000.00 I need help I pay $532.00 monthly some months they take $290.00 in finance charges
Like you I’m in the same boat with my lease. I can’t even sell it to a dealer because they up the price by 4,000 . I’m not happy and this please needs to be taken down on fraud.
Add me they not only discrimination and charging 17% interest rates unknown fees also ruined my credit with their inaccurate information when I was buying my house.
Add me
Add me. They wrongfully repoed my car. Took payments out of my checking and never posted to actual payment. Please help me. I only liked 3 months paying off and the come and got it. They would not help me fix their error. Charged me late fees when they had payments on time.
Is the classaction lawsuit still open? My car was totaled and the remainder of the loan was paid in full. They are still trying to charge me and everytime I call they refuse to give me a supervisor. I have employees names and employee numbers and a case number promising they waived a fee. But it doesn’t show up on my credit report. Now when I call they hang up on me. They refuse to give me anything in writing that I can provide to help my credit score. They have not even posted accurate amounts or dates when payments are due. FEES APPEAR TO BE MADE UP. I AM AT A LOSS.