Ally Financial class action claims bank charges unlawful fees to complete loans (2024)

FAQs

Is there a lawsuit against Ally Financial? ›

Named plaintiff David De Medicis sued the bank in 2021, arguing that the security of his account and the proposed class members' accounts at Ally were compromised by a data breach in which a code error revealed Ally customers' names and passwords to third parties involved in business relationships with the bank.

What is the Ally Bank controversy? In 2013, Ally Bank was ordered to pay $80 million in damages to their customers who were illegally discriminated against when they applied for loans. These borrowers with certain ethnicities were given higher markups on their loan rates than others.

The Justice Department and the Consumer Financial Protection Bureau said an investigation into Ally's lending practices found that car dealers who arranged loans were allowed to mark up the interest rate over what would be justified by their credit profile. The dealers and Ally split the additional interest payments.

The volatility surrounding regional banks last year has impacted Ally Financial, but the stock has recovered nicely, gaining 77% since its March 2023 low. The bank stands to benefit from a pivot in the Federal Reserve's interest rate policy, but investors must also keep a close eye on its credit quality.

Your money is safe with Ally Bank because it is FDIC-insured. This means that your funds in Ally deposit accounts are insured up to $250,000 per person, per ownership category if the bank goes out of business.

In May 2009, GMAC Bank was rebranded as Ally Bank. In May 2010, GMAC re-branded itself as Ally Financial.

What are the disadvantages of Ally Bank? Ally Bank is an online-only bank without any physical branches or the ability to make cash deposits. If you need physical locations and the ability to deposit cash, then it's probably best to go with a traditional brick-and-mortar bank instead.

Money in an FDIC-insured bank, such as Ally Bank, is covered up to $250,000 (including principal and interest) per depositor, per qualifying account ownership category — but you could very well qualify for more than $250,000 in coverage if you mix and match accounts in different categories.

Synchrony and Ally Financial reach agreement on sale of Ally's point-of-sale financing business. Through this acquisition, Synchrony will create a differentiated solution in the industry -- simultaneously offering both revolving credit and installment loans at the point-of-sale in the home improvement vertical.

Ally hedges its interest rate risk with swaps, but is less asset sensitive than most banks. Asset Quality: Fitch views Ally's asset quality as solid for its rating category given the secured nature of most of its loan portfolio.

What is the risk rating for Ally Bank? ›

Sheridan v. Ally Financial, Inc.

A class action out of West Virginia claims Ally Financial, Inc. has “routinely” collected unlawful payment processing fees from borrowers who make monthly auto loan payments online or by phone. Ally Financial, Inc.

Ally Bank FAQs

Yes, Ally is safe to use for online banking. It's an FDIC-insured financial institution, so up to $250,000 per depositor per ownership category is secure in a bank account.

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The FDIC protects your Ally Bank deposits up to $250,000 per depositor for each qualifying account ownership category. This means you can rest assured that your deposits are safe up to FDIC limits, no matter what's happening in the economy.

Ally Bank, as a wholly-owned indirect subsidiary of Ally Financial Inc., is an award-winning digital direct bank that offers a variety of deposit and other banking products. Ally Bank has two businesses that meet the FDIC's definition of Core Business Lines: Automotive Finance and Direct Banking.

Introduced in 1933 during the Great Depression, the FDIC continues to serve as a way to insure Americans' bank deposits in case of bank failure — ultimately guaranteeing the money stays in their possession. As an Ally Bank customer, your deposits are FDIC-insured up to the maximum allowed by law.

You can request a transfer by logging in and selecting Transfers. You can also wire funds to another account for a $30 fee or request a check for a $5 fee.

The settlement provides $80 million in compensation for victims of past discrimination by one of the nation's largest auto lenders and requires Ally to pay $18 million to the CFPB's Civil Penalty Fund.