Consumer Bureau Action Tracker

CFPB – Ally Financial


State

Nationwide

target

Ally Financial Inc. and Ally Bank

Topics

Enforcement, Auto Loans, Fair Lending

In 2013, the CFPB, along with the Department of Justice, settled claims against Ally Financial for violating “fair credit laws by charging minority borrowers higher markups on auto loans than white customers.” Ally agreed to pay $98 million in restitution, with $80 million going to consumers in damages and another $18 million as a civil penalty to the CFPB.

  • The “$98 million agreement” was, at the time, “its largest-ever auto loan discrimination settlement.” In a lawsuit filed by the Department of Justice “in federal court in Michigan requires Ally Financial and Ally Bank to pay $80 million in damages to consumers” in addition to an $18 million civil penalty solicited by the CFPB. The settlement also required Ally Financial “to improve its monitoring and compliance systems.” [David Sherfinski, “Consumer board’s ‘guidance’ against discrimination angers car dealers, lawmakers”, Washington Times, 12/23/13]

Status

Inactive or Resolved


2013-CFPB-0010 12/20/2013 12/20/2013

CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing
http://www.consumerfinance.gov/policy-compliance/enforcement/actions/ally-financial-ally-bank/

  • Consumer Financial Protection Bureau (CFPB)
  • Administrative filing
  • None
  • Bank
  • $98,000,000
  • Not Available

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