Ally Financial Reveals Subpoena From DOJ
Ally Financial Inc. is the latest auto finance company to reveal it has received a subpoena from the U.S. Department of Justice. The subpoena, issued in connection to Ally’s subprime lending practices and securitization activities, was revealed by Ally in an 8-K filed with the Securities and Exchange Commission yesterday.
In the 8-K, Ally wrote simply, “Ally recently received a subpoena from the DOJ requesting information in connection with its investigation related to subprime automotive finance and related securitization activities. Other financial institutions have disclosed receiving similar requests earlier this year.”
Credit Acceptance Corp., the Southfield, Mich.-based indirect lender, revealed last week that it was issued a subpoena from the DOJ, on the heels of similar revelations from Toyota Motor Credit and American Honda Finance Corp.
Last December, Ally agreed to pay $98 million to settle a Justice Department and Consumer Financial Protection Bureau probe into its lending practices, while admitting no wrongdoing. The government had alleged a pattern of loan discrimination against minority borrowers.
The company separately announced today that it had exited the Troubled Asset Relief Program after the U.S. Treasury sold its remaining 54.9 million shares of Ally common stock.
