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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 just had a car loan in 2020 with Ally in November which is ridiculously high. Please add
I had a ally car loan from 2020 to 2022. Please add
I had Ally for 5 years please add me.
Add me
Please add me, I have had car loans with Ally as well!
I had an Ally car loan, please add me if I qualify
I’ve had 2 loans with this company, please add me
I had an auto loan for two years with Ally I didn’t realize my interest rate was at 5 percent. Just refinanced . I will have to check my paperwork. Thank you. Add me please. Not sure if I qualify yet.
I had an auto loan with Ally from Sept. 2014 -to Sept 2020 on a used 2013 Dodge Caravan. Please let me no if i qualify
Add me