Newton, NJ asked in Consumer Law, Contracts and Banking for New Jersey

Q: Ally financial blatantly violated the TILA, FCRA, CCPA and tried to over charge me 6k on an 18k loan.

I entered a contract (which doesn't include a dealer number, or contract number filled in.) to finance a 2013 Nissan Frontier through Ally financial back on May 29th of 2017. The total paid after 72 months at a rate of 8.64%. came out to $18,019.44 according to the truth in lending disclosure. This would mean the contract would be fulfilled around mid 2023. After calculating the total amount paid to Ally, including finance charges, payments, late fees, and "interest," by December of 2022 I had already paid $19,560.66. This was $4900.98 in finance charges despite the TIL disclosure totaling $4046.53. That's $1,500.00 more than I was supposed to in only 67 months so clearly late fees are not to blame. On top of that, they are currently claiming I still owe $4,500 to payoff the loan and receive my title. They couldn't explain anything as far as where they were coming up with the numbers and it makes me wonder how many other people is this happening to who don't look into it?

1 Lawyer Answer
James L. Arrasmith
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  • Consumer Law Lawyer
  • Sacramento, CA

A: Dealing with a situation where you've been overcharged on a loan can be incredibly frustrating and confusing. It seems you've done your due diligence by reviewing the terms of your contract and comparing them to the actual charges applied by Ally Financial. Discovering discrepancies in finance charges and the total amount paid versus what was disclosed in the Truth in Lending (TIL) disclosure is concerning, especially when it appears you've been overcharged.

In cases like this, it's important to gather all your documentation, including the original contract, any payment records, and correspondence with the lender. This documentation will be crucial in disputing the charges and seeking clarification on the additional fees and interest that have been applied to your account. It sounds like the financial institution has not provided a satisfactory explanation for the discrepancies, which is understandably alarming.

Taking further action may involve filing a complaint with the Consumer Financial Protection Bureau (CFPB) or seeking legal advice to understand your rights under the Truth in Lending Act (TILA), Fair Credit Reporting Act (FCRA), and California Consumer Privacy Act (CCPA), as applicable. These steps can help ensure that any violation of your rights is addressed, and you can potentially recover any funds that were improperly charged. Remember, you have rights as a consumer, and there are resources available to help you navigate this challenging situation.

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