Thanks for more details. It will help us.
Does your plugin upload files to a directory named 'album'? If so, does it check to see if there is one already created?
No. We are using WordPress Library attachment system seamlessly. So all media uploads are normal wordpress uploads behind the scene.
This was done so that users will be able to use other plugins like smush.it (for image compression), w3-total-cache (for CDN) without any extra work.
May be album folder was created by another plugin.
Can you try logging into wp-admin side from another browser or Incognito mode (if you are using chrome)