She was born on October 21, 1907 in Santa Monica, California. Her father, Clarence Webb, was the chief of police. When she was a child she took dance lessons and became an expert swimmer. At the age of nineteen she made a screen test for MGM and was offered a contract. She worked as an extra in numerous films but she was never given any significant roles. Fay met Rudy Vallee on the set of the 1929 film The Vagabond Lover. The couple were married on July 6, 1931. She decided to give up her career to be a full-time housewife. Unfortunately their marriage was tumultuous and she began drinking. Fay also suffered from a recurring case of tuberculosis. They bought a fourteen room mansion in Beverly Hills but because of Rudy's busy touring schedule they never moved in. After just two years of marriage they split up in 1933. She accused him of cheating on her with Alice Fay and said he "cursed and swore at me in front of his friends."
Rudy claimed that she had been unfaithful with dancer Gary Leon. Their divorce took three years to settle because she was often too ill to attend court. Fay was awarded $25,000 and $100 a week in alimony. She continued to struggle with alcoholism and in 1934 she was diagnosed with cirrhosis of the liver. Sadly her mother, Myrtle Webb, died in early 1936. Then in November she had abdominal surgery. Fay developed peritonitis and lapsed into a coma. Tragically on November 18, 1936 she died at the young age of twenty-nine. Her ex-husband Rudy Vallee said "I've always loved her. I always will." She was buried at Woodlawn Cemetery in Santa Monica, California. More tragedy occurred during the funeral when her aunt suffered a heart attack and died right next to her coffin. Rudy later married actress Jane Greer.
