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How to Settle Debt With GMAC Financing

George Simons | January 30, 2025

George Simons
Co-Founder of SoloSuit
George Simons, JD/MBA

George Simons is the co-founder and CEO of SoloSuit. He has helped Americans protect over $1 billion from predatory debt lawsuits. George graduated from BYU Law school in 2020 with a JD-MBA. In his spare time, George likes to cook, because he likes to eat.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: GMAC is now Ally Financial and is not owned by General Motors. The company’s current financing division is GM Financial. If you owe a debt to GM Financial, don’t ignore it. Ask collectors to validate the debt, file a written Answer with the court if you’ve been sued, and reach out to negotiate the debt. Solo can help.

Purchasing and ultimately owning an automobile is part of the American dream. However, this dream can quickly turn into a nightmare if you encounter a sudden job loss, suffer a bodily injury that forces you to retire or take a significant amount of time off work, or confront another emergency that drains your financial resources.

If you purchased a car manufactured by General Motors (GM), you may be required to deal with GM Acceptance Corp(GMAC) and potentially a debt collection agency retained by GMAC to try and collect on a delinquent auto loan.

GMAC is generally known to accept late payments, but if you miss multiple payments, GMAC will not hesitate to proceed with repossession and debt collection.

Settle debt with GMAC Financing

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

Settle with SoloSettle

Who is GMAC Financing?

GMAC Financing was General Motors’ Auto Financing division until 2010. After the 2008 economic depression, GM consented to renaming it Ally Financial in exchange for a government bailout. General Motors ended up selling its stake in the company. Ally Financial now finances cars sold at various dealerships.

If you see a GMAC Financing entry on your credit report, you may have a long-standing debt with GM. Alternatively, consumers may see Ally Financial if the debt was transferred to the new entity. Newer GM customers will likely see their new financing arm, GM Financial.

To contact Ally Financial, use the contact information below:

  • Phone: 1-877-247-2559
  • Address: PO Box 217062, Auburn Hills, MI 48321

The company’s contact page has specific contact information depending on why you are calling.

Who does GMAC Financing collect for?

GMAC Financing (now known as Ally Financial) is an auto financing bank. It also provides credit cards and checking accounts. Ally Financing will call to collect a debt from you if you are late on your credit card payments or do not keep up with your car payments. GMAC may also hire a third-party debt collector to contact consumers with past-due accounts.

Read GMAC Financing reviews online.

Many consumers have left reviews online. While mixed, the logical conclusion is that you must engage GMAC to resolve your debt.

As an entirely online bank, it does not have a physical location. You may contact customer care by fax, mail, email, or phone.

Here's how to resolve debt with GMAC debt collectors

No one wants to deal with debt collection. However, when you experience financial stressors that leave you behind on payments, the best way out is to strike a deal with GMAC. It’s also crucial to verify every debt to ensure it’s yours and every detail is accurate.

GMAC should provide the details for every debt they claim you owe. You can create and send them a debt validation letter if they do not. Use SoloSuit’s guide to make the document in minutes.

Request a copy of the deficiency notice from GMAC Financing

If your car has been repossessed, you may still owe GMAC some money. Such a scenario occurs if the lender does not recover the debt you owe from selling the car. For example, you may have owed GMAC $27,000 on your vehicle loan. They repossessed the vehicle and sold it at an auction for $17,000. You still owe them the $10,000 difference.

A deficiency notice document should tell you the amount that you currently owe. If you haven't received it, call GMAC and request them to send it via fax or mail. Do not accept as fact any verbal amounts given to you over the phone without written confirmation.

Compare the deficiency total to your loan documents to ensure the amount sounds reasonable. It should be lower than the car's loan balance and not higher. Remember, deficiency is the debt balance after the lender has sold the vehicle and partially recouped some of its costs.

Request a debt validation from GMAC

If you notice a GMAC Financing entry on your credit report, formally request that GMAC provide all documents concerning the purported debt. The information the company sends helps you verify that the debt amount is correct and enables you to trace it to the date you signed the contract.

You can formally request a debt validation by sending a debt validation letter. After receiving a request to validate a debt, 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 the consumer sends them a Debt Validation Letter within 30 days.
  • If you send the collector a Debt Validation Letter, they must mail you validation of the debt within 30 days.
  • The name and address of the original creditor.

Check out this video to learn more about how to draft and send a Debt Validation Letter:

If a debt is legitimate and every detail is correct, but you cannot pay it 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 first strategize. Follow the steps below:

  1. 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 on your part to honor the amount borrowed.
  2. Next, contact the phone number on the debt verification letter or the deficiency document sent by GMAC to ask whether the company would consider a settlement. If they are open to negotiations, present your offer in writing.
  3. Be prepared for negotiations. GMAC may not accept your original offer, but instead, they may respond with a counteroffer.
  4. Get the details in writing. Once you and GMAC have arrived at an agreement, request a signed settlement agreement that outlines everything about the debt settlement, including that the rest of the debt will be forgiven.
  5. Pay the amount you agreed on 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.

Watch this video to learn more about negotiating a debt settlement:

What is SoloSettle?

SoloSettle is a web app that allows consumers and debt collectors to resolve debt outside court. The debtor uses the app to request for debt settlement. Both parties negotiate on the platform, and when they agree, the consumer authorizes payment within the app. SoloSettle ensures a traceable line of communication and a safe way to pay the settlement.

Settle with SoloSettle

Make an Offer

What to do if GMAC or Ally Financial files a lawsuit against you

If you’ve received and Summons and Complaint, your instinctive reaction might be to panic. They’re suing you for a debt and you don’t have the money for an attorney to fight back, so you might as well bury your head in the sand and pretend like it isn’t happening, right? Wrong!

The worst thing you can do is ignore a lawsuit. When you don’t respond to the lawsuit with an Answer within the specified time frame, GMAC can ask the court for a default judgment. If it’s granted, the judgment may allow them to garnish your wages, seize your bank account, or place liens on your property.

After you file an Answer, the battle isn’t over. It is crucial that you keep track of your court case until it is resolved. Once the Answer has been properly filed, it’s time to reach out and discuss settlement options that work for both you and GMAC.

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