Ally Financial Inc. Consumer Loan Complaint

Ally Financial Inc. Consumer Loan department,

Vehicle lease Managing the loan or lease Ohio

I leased a - Jeep Cherokee through Ally Bank on - -, -. The Capitalized Cost Reduction, as shown on the lease contract, was $7000.00. The Adjusted Capitalized Cost at the beginning of the lease, and the total amount financed by Ally Bank, was $26000.00. On - -, - the vehicle was stolen and was later recovered with damages. The vehicle was then taken to - - in - - to be repaired. On - -, -, the vehicle was involved in a fire at - - and was deemed a total loss. The lease contract clearly defines the Unamortized Capital Cost of the vehicle as being synonymous with the lease payoff amount prior to the end of the lease term. Using the formula provided in the lease contract, the lease payoff at the time of the total loss was $25000.00. On - -, -, - - determined the Actual Cash Value of the vehicle at the time of loss as being $28000.00. On - -, -, - - faxed Ally Bank a request for a Letter of Guarantee with a settlement amount of $25000.00.


Ally 's Total Loss Department claimed that, per the terms of my lease contract, the insurance company owed Ally Bank the full value of the vehicle so that Ally could replace their car. However, nowhere in the lease contract does it say in the event of a total loss that Ally Bank would be owed the full Actual Cash Value, the full Fair Market Value, or the full settlement amount paid by insurance. After receiving the vehicle valuation report, Ally Bank felt the valuation was too low and demanded the valuation be increased before they would issue a Letter of Guarantee. On - -, -, - - provided Ally Bank with an increased vehicle valuation of $29000.00. On - -, -, Ally Bank finally provided - - with a Letter of Guarantee stating that they would release the title of the vehicle upon receiving settlement a check in the amount of $29000.00. The settlement amount Ally Bank received for the total loss exceeded the lease payoff at the time of loss by $4000.00. While Ally Bank profited from the total loss of the vehicle, I was left with nothing to put towards replacing it.