Deadline Looms for Ally Settlement | Auto Finance News | Auto Finance News

Deadline Looms for Ally Settlement

© Can Stock Photo Inc. / jcpjrAbout 235,000 Ally Financial Inc. customers who want part of an $80 million settlement have until Oct. 24 to apply for a refund from the administrator in the case.

To qualify, consumers must have financed a vehicle with Ally between April 1, 2011, and Dec. 31, 2013, according to an online FAQ. They must have been overcharged, as defined in the settlement, and the borrower must sign a form that says they or their co-signer (if any) belong to a protected group named in the consent order.

Ally settled discrimination charges based on dealer markup on auto loans, with the Consumer Financial Protection Bureau and the U.S. Department of Justice in December 2013. In June, an independent administrator started sending out instructions to consumers for how to get a refund.

The CFPB and the DOJ said regulators identified about 100,000 African-American borrowers who paid an average of $300 more than the average for non-protected classes, and about 125,000 Hispanic borrowers and 10,000 Asian or Pacific Islander borrowers who paid $200 extra.

However, the statistical method regulators use to identify members of protected classes is highly controversial. Attorneys for the auto finance industry protest that the statistics produce inaccurate results. Auto lenders aren’t allowed to collect data on race and ethnicity, so regulators use “proxies” for the actual data, based on customer names and addresses, to assign a likelihood whether a specific individual belongs to a protected class.

 

For more content like this, check out the upcoming Auto Finance Summit, October 21-23 at Wynn Las Vegas. Visit www.AutoFinanceSummit.com for more information.

 

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14 thoughts on “Deadline Looms for Ally Settlement

  1. Pratically any Ally customer could send in one of these forms and get a piece of the settlement. And many will. Every customer thinks they were overcharged and the CFPB has no idea of who was and wasn’t and their BISG proxy methodology was totally discredited by the Charles River Study last November. I as a white male could believe I was overcharged because Ally was trying to fix the numbers to give minorities a better deal.

  2. I need a new application for the Ally Financial Inc Ally Bank Settlement. please mail or email me the forms. Thank You

  3. I misplaced my form please e-mail or mail another.

  4. Im a participating in this settlement

  5. I have been waiting on a response about the settlement, I was eligible and I filled out the form they sent me in the mail. I am participating in the settlement.

  6. Has anyone received a notice on possible date of check and how much?

  7. Guess we aren’t the only ones still waiting

  8. They said late 2015 (which has passed) or early 2016.

  9. They said late 2015 early 2016 to receive payment. When I called several days ago now they are saying March.

  10. […] Only a month into 2016, and the Bureau has received harsh criticism from the House Financial Services Committee, in a report released on Wednesday. In the report the committee called into question the process the CFPB used for issuing payouts to affected borrowers in Ally Financial Inc.’s disparate impact case. […]

  11. still waiting..

  12. Any one else receive a refund of 162

  13. I got $170 yesterday, Feb1. I know it’s better than nothing.