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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
I was scammed by Ally they deleted my nee account info and then on my 2nd to last catch up plan payment they tried drafting from an account that was closed. I made payment by phone and then when my last payment was due in august I was magically behind again made another payment and then in sept was behind again its almost 3 weeks now and I vant get through on the phone to make a payment meanwhile being charged late fees
Hey same here in Aug 22 they said I was behind 4 payments that they had. I withdrew it out of my account but would not post to payment said I was 4 payments past due and Ii only liked 3 payments paying off they come and stole the car. If you know s lawyer taking these kind of cases please let me know please. They have taken my only car wrongfully and they will not help me at all.
Tengo un préstamo con ally pero creo que el interés es muy alto
please add me. I had one of these leases through ALLY which resulted in a repossession an charge off. I have stellar history other than them and in violation of IRS law 1.166-2
Please add me. Have auto loan thru this company
Please add me , I have a car loan with them. Too embarrassed to admit signing with an Apr over 25% . By end date I will have purchased the car almost 3 times over.
Please add me. I had.to send car back due to costs of monthly loan. I begged for help from them.to lower it but they refused and had it towed from my.property and charged me the tow fee too.
Add me I currently have an auto loan and need it to be looked at to see if I was overcharged. ,
Add me! I had a car loan with Ally.
Ally has destroyed me took payments never applied to actual payments and reposses my car, charging me fees and late fees and payment coming out of my account monthly.
Add me! I had 2 2021 Corollas financed with them and refinanced them with out credit union a year after we bought them bc the payments were ridiculous now they’re almost half what they were!
Please add me! They ruined my credit by making an error in my payments!
Please add me. Thanks