A frequent provision in vehicle lease agreements is an option for buying the vehicle at the end of the lease. The complaint for this class action brings suit against Ally Financial, Inc. and Ally Bank Lease Trust, alleging that they have included such provisions in their leases and then refused to honor them.
The plaintiff in this class action, Moshe Katzburg, entered into an Ally Smartlease on October 21, 2018, with Schumacher Automotive Delray, LLC, for a 2019 Jeep Cherokee. The complaint quotes Section 9 of the document as saying, “You have an option to buy the vehicle at the end of the lease for $20,956.20, plus official fees and taxes.”
Section 13 bears the title, “Official Fees and Taxes,” and specifically mentions governmental license, title, registration, testing, and inspection fees, as well as taxes on the lease. The complaint quotes a couple of other relevant provisions relating to purchase as well.
At the end of his lease, Katzburg decided to buy his Jeep at the price set in the lease. However, the complaint alleges, “Ally told him that it could not legally sell him his car in Florida, despite what his SmartLease stated.” The company told him he would have to buy it through a licensed car dealership, one that did business with Ally.
He then went back to Schumacher, the original dealership, but the complaint alleges that Schumacher told him he would have to pay an additional $2,000 in fees which were not included in his SmartLease agreement. Katzburg then found another dealership to sell him his vehicle, but the complaint says Ally then refused to sell the dealership the vehicle for any less than $25,000. Finally, he was able to buy the vehicle at the stated price plus an additional $500 processing fee.
The complaint argues that the additional fee is not an official fee or tax and that no additional fee is mentioned in the SmartLease agreement as being necessary for buying the vehicle.
According to the complaint, Ally Financial has previously been sued in Florida for “the same exact conduct” and settled for $20 million.
The class for this action is all persons throughout the US who leased a motor vehicle under a SmartLease Agreement assigned to Ally Financial, Inc. (or a predecessor in interest or affiliate, including General Motors Acceptance Corporation, GMAC, LLC, GMAC, Inc., GMAC Automotive Bank, Ally Bank, Ally Bank Lease Trust, or Ally Financial Lease Trust), and who then bought the leased vehicle between June 19, 2018 and the present, pursuant to the purchase option provision in the SmartLease Agreement, and who were required to pay any fee not disclosed in the SmartLease Agreement and/or who were required to pay any fee not disclosed in the SmartLease Agreement, and/or who were required to pay more than the price specified in the purchase option in the SmartLease when they bought the vehicle.
Article Type: LawsuitTopic: Contract
Most Recent Case Event
Ally Financial End-of-Lease Purchase Conditions Complaint
April 8, 2022
A frequent provision in vehicle lease agreements is an option for buying the vehicle at the end of the lease. The complaint for this class action brings suit against Ally Financial, Inc. and Ally Bank Lease Trust, alleging that they have included such provisions in their leases and then refused to honor them.
Ally Financial End-of-Lease Purchase Conditions ComplaintCase Event History
Ally Financial End-of-Lease Purchase Conditions Complaint
April 8, 2022
A frequent provision in vehicle lease agreements is an option for buying the vehicle at the end of the lease. The complaint for this class action brings suit against Ally Financial, Inc. and Ally Bank Lease Trust, alleging that they have included such provisions in their leases and then refused to honor them.
Ally Financial End-of-Lease Purchase Conditions Complaint