FI showroom red and grey logo
MenuMENU
SearchSEARCH

Ally Subpoenaed By DOJ

On the same day the U.S. Department of the Treasury sold the last of its remaining 54.9 million shares of Ally common stock, Ally Financial revealed that it has received a subpoena from the Department of Justice related to subprime auto lending.

December 19, 2014
2 min to read


DETROIT — On the same day it announced that it will exit the Troubled Asset Relief Program (TARP), Ally Financial also disclosed in a regulatory filing that it received a subpoena from the Department of Justice (DOJ) requesting information related to subprime auto lending.

Ally is the latest finance source to disclose that it is the subject of the DOJ's investigation into subprime lending. Other sources include Santander Consumer USA, GM Financial and Credit Acceptance Corporation. Also this month, Toyota Motor Credit Corp. and American Honda Finance Corp. revealed in regulatory filings that they also face enforcement actions from the DOJ and the Consumer Financial Protection Bureau. The captives said the two agencies allege that their auto lending practices — particularly policies that allow dealers to mark up consumer interest rates — resulted in discriminatory pricing of auto loans.

Ad Loading...

“… Ally recently received a subpoena from the DOJ requesting information in connection with its investigation related to subprime automotive finance and related securitization activities,” the filing read, in part. “Other financial institutions have disclosed receiving similar requests earlier this year.”

On the same day, Dec. 18, Ally announced that the U.S. Department of the Treasury has sold its remaining 54.9 million shares of Ally common stock at $23.25 per share, meaning the finance source will exit the TARP upon settlement of the sale. The U.S. Treasury received $19.6 billion in total on the $17.2 billion Ally investment, which is $2.4 billion more than originally invested. 

“This marks another major milestone in Ally's journey," said Ally CEO Michael A. Carpenter. “… Today, Ally stands as a stronger and more focused financial services company that is dedicated to continued progress in the future.”

Ally entered TARP in December 2008 as part of an effort to stabilize and strengthen the U.S. auto industry.  Since receiving the investment from the U.S. Treasury, Ally has financed 7.4 million U.S. vehicles purchases through its auto dealer network, which currently stands at approximately 16,000 dealers. This represents about one in every 12 new vehicles sold to U.S. consumers during that period. Additionally, Ally provided inventory financing for nearly 23 million vehicles purchased and more than 6,500 dealers since receiving the investment from the U.S. Treasury. 

A year ago, Ally reached a $98 million settlement with the DOJ and CFPB related to its auto lending practices, which the regulators said had resulted in discrimination against minority car buyers.

More Auto Finance

Scrabble letter tiles spelling fraud
Auto Finance•by Gil Van Over•September 30, 2026

Top Five Credit Application Fraud Flags

Compliance audits regularly reveal bad habits that can lead to fraud charges and should have been stamped out decades ago.

Read More →
Paper money, car key fob and calculator
Auto Finance•by Hannah Mitchell•September 14, 2026

More Auto Loans for the Taking in August

Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.

Read More →
A fan of $100 bills sitting on a white envelope
Auto Finance•by Hannah Mitchell•August 12, 2026

July Was Hot for Auto Borrowers

Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.

Read More →
Ad Loading...
stacks of coins, a calculator, paperwork, and a pair of glasses in the background, text Lender Experience Drives Dealer Decisions, F&I and Showroom
Auto Finance•by Lauren Lawrence•August 12, 2026

Dealer Lender Preferences Revealed

When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.

Read More →
man sitting at desk using a calculator
Auto Finance•by Lauren Lawrence•August 10, 2026

Auto Refi Savings Surge

Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.

Read More →
Tiny toy car in front of small stacks of coins
Auto Finance•by Hannah Mitchell•August 5, 2026

Subaru Enters Lending Business

The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.

Read More →
Ad Loading...
Man climbing ladder in front of mountain landscape.
Auto Finance•by Lauren Lawrence•August 3, 2026

Positive Equity Reaches Record High

Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.

Read More →
Photo of document next to calculator and inkpen
Auto Finance•July 20, 2026

Dealerships Are Paying the Price for Extended Car Loans

Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.

Read More →
silver car in background with hand in front holding out a set of keys, Trade-In Trouble, F&I and Showroom
Auto Finance•by Lauren Lawrence•July 20, 2026

Trade-Ins in Negative Equity Reach New Heights

As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.

Read More →
Ad Loading...
Two men in suit jackets shaking hands in front of a new-looking white vehicle
Auto Finance•by Hannah Mitchell•July 15, 2026

Auto Credit Plentiful

June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.

Read More →