All About Ally Lawsuits

Ally Bank was a subject of a 2021 data breach lawsuit where customer usernames and passwords were exposed to third-party businesses. In so doing Ally Bank allegedly violated the California business and professions code, the California unfair competition law, and the California consumer Privacy Act. According to the lawsuit, this incident was not related to any type of cyber attack or hacking but from a programming error the fault of Ally Bank. Because of that error Ally Bank business partners were able to access customers’ full names, account numbers, statements, check images, email addresses, employment information, tax forms, beneficiary information, and other bank account details.

Ally Bank was sued in 2021 with a class action lawsuit stating that they violated the Fair Credit Reporting Act. This is still ongoing. 

The CFPB filed a lawsuit against Ally Bank in 2016. The Department of Justice pursued a federal court order which required Ally Bank to pay $80 in damages. In this case Ally Bank was accused of discriminatory auto loan pricing policies, marking up risk-based interest rates without adequate controls or monitoring, an action that targeted African-American, Asian and Pacific Islander, and Hispanic borrowers.

So next time you don’t think your complaints to the CFPB are being heard, remember that sometimes it takes a few years of investigation before the government takes action.

Ally Bank settled a class-action lawsuit involving a lot of complicated debt collection practices. Some of the allegations stipulate that Ally Bank sent notices about attempting to collect and repossess personal property that was used as collateral for loans or financing agreements. Other allegations include negative credit information that was sent by Ally Bank, unnecessary late charges, and repossession of personal property. In some cases Ally Bank even sold personal property they repossessed in association with loans and financing agreements. Ally Bank agreed to a 788 million-dollar settlement.