Ally Debt Cancellation Agreement

The remaining gap between what her insurance paid and what she owed for her vehicle was $US 7,000. When Hernandez asked for Ally`s $7,000 to cancel his debt, his request was denied due to an « exclusion » that was not allowed by Maryland law. Under Maryland law, the lender is required to cancel the remaining balance on its auto credit — that is, pay the borrower — if a vehicle protected by a debt cancellation contract is added up or stolen after the insurance proceeds are applied. .

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