Ally facing legal challenge over leasing terms

National law firm Baron & Budd has announced it is accepting cases from consumers who participated in the SmartLease automotive lease program offered by Ally Financial, amid claims the former GM captive is violating the Federal Consumer Leasing Act by charging hidden fees when customers want to purchase their vehicle at the end of the lease.

Baron & Budd says that when a customer signs the company’s SmartLease agreement, he or she can purchase the vehicle at the end of the lease for a set price, in addition to official fees and taxes. These taxes include registration, title, license, inspection and testing fees.

However, the law firm is claiming many consumers report that Ally is violating the terms of the agreement by charging additional fees that are commonly in excess of $1,000.

Once consumers wish to purchase their vehicles at the end of the lease Ally, they allege, will typically refuse to sell the vehicle at the price set forth in the lease agreement. Instead, consumers claim, the company will force them to buy the vehicle for a higher price through a dealership, adding fees that were not previously disclosed in the agreement. These include charges such as dealer and document preparation fees.

“Ally Financial is alleged to have committed a violation of the Federal Consumer Leasing Act by not living up to the agreement it makes with its automotive leasing customers,” said Roland Tellis, head of the consumer class action group at Baron & Budd. “Our firm has the resources, experience and knowledge to protect the rights of consumers who feel they were taken advantage of by the company.”

Baron & Budd is currently appealing for consumers who feel they may have been unfairly treated by Ally Financial to get in touch. Ally Financial has not, so far, made a comment on the development.