Ally Financial
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| Basic information | |
|---|---|
| Founded | 1919 |
| Type | Public |
| Industry | Financial services |
| Official website | http://ally.com |
Ally Financial Inc. is a US-based company offering banking, securities, and other financial services through its subsidiaries such as Ally Bank, Ally Invest Advisers Inc. and Ally Invest Securities LLC.
Incidents
2013 discrimination settlement
Due to Ally's discriminatory pricing system, more than 235,000 minority borrowers paid higher interest rates for their auto loans between April 2011 and December 2013. The Consumer Financial Protection Bureau (CFPB) and Department of Justice (DOJ) ordered the company to pay $18 million in penalties and $80 million in damages to affected borrowers.[1][2]
Data breach
Ally Financial experienced a data breach in April 2024 that revealed the personal data of millions of its clients.[3] A class-action lawsuit had been filed by July 2024,[4] claiming Ally did not properly secure customers' confidential information, such as Social Security numbers and auto account numbers. The suit also alleged that Ally failed to use computer software available for detecting and warding off cyberattacks, and other measures needed to protect its hardware of the systems. Additionally, customer notifications were sent with long delay.[5] to Due to this, the stolen personal data was being sold on the dark web.[6]
References
- ↑ https://www.consumerfinance.gov/about-us/newsroom/cfpb-and-doj-order-ally-to-pay-80-million-to-consumers-harmed-by-discriminatory-auto-loan-pricing/
- ↑ https://www.consumerfinance.gov/about-us/blog/harmed-ally-borrowers-have-been-sent-80-million-in-damages/
- ↑ https://news.bloomberglaw.com/ip-law/ally-breach-may-have-leaked-consumer-data-of-billions-suit-says
- ↑ https://www.bloomberglaw.com/public/desktop/document/OwensvAllyBanketalDocketNo324cv00811WDNCSep072024CourtDocket?doc_id=X5LVE5J58BA8CP8L7L86STUQPGQ
- ↑ https://natlawreview.com/article/ally-financial-faces-class-actions-over-data-breach
- ↑ https://news.bloomberglaw.com/ip-law/ally-breach-may-have-leaked-consumer-data-of-billions-suit-says