Ally Financial Credit Check for Closed Account FCRA Class Action

The complaint for this class action says in its introduction, “There is a need to [e]nsure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy.” This is what Congress intended to provide with the Fair Credit Reporting Act (FCRA). However, it alleges, Ally Financial, Inc. violates the law by making “unauthorized and unlawful” credit inquiries.

The class for this action is all persons whose consumer credit reports from any of the three major credit reporting agencies (TransUnion, Equifax, and Experian) reflects an unauthorized consumer credit report inquiry by Ally Financial after closure of the consumer’s account with Ally Financial, through bankruptcy or any other means, between February 4, 2015 and February 4, 2020.

Plaintiff Linda Cottrell allegedly incurred a debt to Americredit Financial Services, Inc. which does business as GM Financial. On June 28, 2017, she filed for a Chapter 7 bankruptcy in Arizona, where she lives.

As part of their cases, people filing for bankruptcy are required to list all of their debts, after which their creditors are informed. Cottrell listed this debt and, the complaint claims, GM Financial received notice of the bankruptcy. Neither she nor GM made any filing to declare the GM debt “non dischargeable.” Neither of them made any filing to request relief from the automatic stay imposed on debts during bankruptcy proceedings.

Cottrell received a bankruptcy discharge of her debts on October 26, 2017. This discharge included the GM debt, and according to the complaint, it “extinguished any relationship between [Cottrell] and [GM].”

Sometime thereafter, the complaint says, GM nevertheless sold, transferred or assigned the debt to Ally Financial.

In the summer of 2019, Cottrell checked her TransUnion credit report and found that Ally had made an authorized credit inquiry on April 30, 2018 for “account review” reasons.

The FCRA sets forth the only permissible reasons for accessing a consumer’s credit report. According to the complaint, Ally’s request for Cottrell’s credit report was unauthorized and fell outside of the permissible reasons.

The FCRA has two levels of damages. One is for negligent violations. However, the complaint claims that Ally knew about the provisions of the FCRA and that its violations were therefore willful. The FCRA provides for damages of not less than $100 and not more than $1,000 for each violation. The complaint also requests punitive damages and attorneys’ fees and costs, which are also provided for in the law.

Article Type: Lawsuit
Topic: Privacy

Most Recent Case Event

Ally Financial Credit Check for Closed Account FCRA Complaint

February 4, 2020

The complaint for this class action says in its introduction, “There is a need to [e]nsure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy.” This is what Congress intended to provide with the Fair Credit Reporting Act (FCRA). However, it alleges, Ally Financial, Inc. violates the law by making “unauthorized and unlawful” credit inquiries.

ally_financial_debt_discharged_in_bankruptcy_compl.pdf

Case Event History

Ally Financial Credit Check for Closed Account FCRA Complaint

February 4, 2020

The complaint for this class action says in its introduction, “There is a need to [e]nsure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumer’s right to privacy.” This is what Congress intended to provide with the Fair Credit Reporting Act (FCRA). However, it alleges, Ally Financial, Inc. violates the law by making “unauthorized and unlawful” credit inquiries.

ally_financial_debt_discharged_in_bankruptcy_compl.pdf
Tags: FCRA, No permissible purpose for request for report, Your Privacy