How to Settle Debt With GMAC Financing (Now Ally Financial)
GMAC Financing is now Ally Financial, and newer GM customers deal with GM Financial instead. If you owe GMAC or Ally Financial, don't ignore the debt. Request debt validation, negotiate a settlement for less than you owe, and always respond to lawsuits with a written Answer within the required time frame to avoid default judgments.
Answer Your LawsuitPurchasing a car is part of the American dream. However, job loss, injury, or emergencies can quickly drain your finances.
If you bought a General Motors vehicle, you may deal with GMAC debt collectors. GMAC generally accepts late payments. But miss multiple payments and they will pursue repossession and collection.
GMAC or Ally Financial Suing You? Respond Now
Don't let GMAC get a default judgment against you. Answer your lawsuit and negotiate a settlement that protects your wages and bank accounts.
Respond to GMAC LawsuitWho Is GMAC Financing?
GMAC Financing was General Motors’ auto financing division until 2010. After the 2008 recession, GM renamed it Ally Financial for a government bailout. General Motors sold its stake completely. Ally Financial now finances cars at various dealerships.
If you see GMAC Financing on your credit report, you have an old GM debt. Alternatively, you may see Ally Financial if the debt transferred to them. Newer GM customers deal with GM Financial instead.
Contact Ally Financial using the information below:
- Phone: 1-877-247-2559
- Address: PO Box 217062, Auburn Hills, MI 48321
The company’s contact page has specific information depending on your reason for calling.
Who Does GMAC Financing Collect For?
GMAC Financing, now Ally Financial, is an auto financing bank. The company also provides credit cards and checking accounts. Ally will call if you’re late on credit card or car payments. GMAC may also hire third-party collectors for past-due accounts.
Read GMAC Financing Reviews Online
Many consumers have left online reviews. While mixed, the clear takeaway is simple. You must engage GMAC to resolve your debt.
- Read GMAC Financing reviews on the Better Business Bureau website
- Read GMAC Financing reviews in the CFPB database
As an entirely online bank, GMAC has no physical locations. You can contact customer service by fax, mail, email, or phone.
How to Resolve Debt With GMAC Debt Collectors
No one wants to deal with debt collection. However, financial stress happens. The best way out is striking a deal with GMAC. Verifying every debt is also crucial. You need to confirm it’s yours and every detail is accurate.
GMAC should provide details for every debt they claim you owe. You can create and send a debt validation letter if they don’t. Our partner Solo helps you respond to debt collectors and lawsuits effectively.
Request a Copy of the Deficiency Notice From GMAC Financing
If your car was repossessed, you may still owe GMAC money. Such scenarios occur when the lender doesn’t recover your full debt from selling the car. For example, you owed GMAC $27,000 on your vehicle loan. They repossessed it and sold it at auction for $17,000. You still owe the $10,000 difference.
A deficiency notice tells you the amount you currently owe. If you haven’t received it, call GMAC and request it via fax or mail. Don’t accept verbal amounts over the phone without written confirmation.
Compare the deficiency total to your loan documents. The amount should sound reasonable. It should be lower than the car’s loan balance, not higher. Remember, deficiency is the debt balance after the lender sold the vehicle.
Request Debt Validation From GMAC
If you notice GMAC Financing on your credit report, formally request documentation. The information helps you verify the debt amount is correct. It also enables you to trace it to your original contract date.
You can formally request debt validation by sending a debt validation letter. After receiving this request, GMAC debt collectors must prove the following with proper documentation:
- The amount of the debt
- The name of the creditor
- A statement that the collector will assume the debt is valid unless you respond within 30 days
- If you send them a validation letter, they must mail you validation within 30 days
- The name and address of the original creditor
If a debt is legitimate and every detail is correct, but you can’t pay in full, request that GMAC settle for less. Read the following section to learn how to negotiate a debt settlement.
Consider Negotiating a Debt Settlement With GMAC Financing
Consider negotiating with GMAC to resolve the case via settlement. If you pursue this option, you must strategize first. Follow the steps below:
- First, determine the highest payoff amount you can reasonably afford. It should be a considerable fraction of the debt. Consider offering around 50% of the balance owed. Why? Because it reflects good faith and effort to honor the amount borrowed.
- Next, contact the phone number on the debt verification letter or deficiency document. Ask whether GMAC would consider a settlement. If they’re open to negotiations, present your offer in writing.
- Be prepared for negotiations. GMAC may not accept your original offer. Instead, they may respond with a counteroffer.
- Get the details in writing. Once you and GMAC arrive at an agreement, request a signed settlement agreement. The document should outline everything about the debt settlement. It must state that the rest of the debt will be forgiven.
- Pay the agreed amount in a timely manner.
If a lawsuit has been filed, you can still settle. First, respond to the lawsuit with a written Answer. Then follow the steps above to negotiate a settlement.
Our partner Solo makes it easy to answer a debt lawsuit and negotiate settlements with collectors like GMAC.
What to Do If GMAC or Ally Financial Files a Lawsuit Against You
If you’ve received a Summons and Complaint, your instinct might be to panic. They’re suing you for a debt. You don’t have money for an attorney to fight back. You might think you should bury your head in the sand. Wrong!
The worst thing you can do is ignore a lawsuit. When you don’t respond with an Answer within the specified time frame, GMAC can ask the court for a default judgment. If granted, the judgment may allow them to garnish your wages. They can seize your bank account. They can place liens on your property.
After you file an Answer, the battle isn’t over. Keep track of your court case until it is resolved. Once the Answer has been properly filed, reach out to discuss settlement options. Find terms that work for both you and GMAC.
Don’t face GMAC or Ally Financial alone in court. Our partner Solo helps you respond to debt lawsuits and negotiate settlements that protect your finances.