Ally Financial v. Sheridan

NACA filed an amicus brief asking the Fourth Circuit Court of Appeals to affirm the District Court’s decision to grant class certification in a case addressing Ally Financial’s use of “pay-to-pay fees” for consumers who make payments on their auto finance contracts. The underlying lawsuit challenges Ally’s utilization of third-party payment processors to collect debt and, in the process, impose fees on consumers who make payments using certain methods, such as online or by telephone. NACA’s amicus brief expressly challenges the amicus brief filed by an advocacy group supporting third-party payment processors, which argues that third-party payment processors should be able to charge consumers fees that the finance companies would otherwise be legally barred from charging.