![\"user-pic\"](\"/css/images/default.gif\")
Ally needs lots of deposits because they're the ones funding your new car purchase at any General Motors dealer. If I'm not mistaken, they're also the captive finance company for Chrysler now too.
Ally needs lots of deposits because they're the ones funding your new car purchase at any General Motors dealer. If I'm not mistaken, they're also the captive finance company for Chrysler now too.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-255368-100x100.png\")
Is there any way I can get my bank to explicitly deny any funds transfer from Ally Bank? If they'll do a large transfer like that from my unverified account, that's a huge fraud potential. Simple open up an account, \"verify\" checking account, and then transfer some money, and then withdraw it. Rinse, wring, repeat with another random bank account.
Are the funds the withdraw without verification held until the verification occurs? If the verification does not occur within a specified time frame, are the funds returned?
Even if they do have pleasant customer service, I'm not sure I would continue opening the account after this fiasco. ING perhaps? I've been happy with them.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-400379-100x100.png\")
In this case I don't see what Ally did wrong. The OP misentered her account number and didn't do anything to correct it. I think that it is a plus that Ally allows the quick transfer because people want access to their money quickly. The OP's bank was right for catching the mistake and fixing things on their end, but in this case I think the OP deserved the fee (I don't think that anyone really deserves fees)
In terms of the support, I had questions about interest rates so I live chatted them and the rep was quick, polite, and knowledgeable even though my questions were a little obscure.
@CompyPaq: If the verification process exists for no reason, why does it exist at all? This behavior is inexcusable, and it's made me rethink opening an account with Ally.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-21984-100x100.png\")
@CompyPaq: As others said, I am seeing way to much potential for fraud with the bank's method. Just look at the Nigerian 419 crowd and now the \"payment processing job\" crowd for examples of how this method of unverified money transfer could be a boon to the criminal eliment...
@CompyPaq:
Suppose I owned a business where I frequently received payment in the form of checks. I now have the checking account numbers of a great many people. If Ally allows linked accounts to be accessed without verification that I own the linked account, I can now commit fraud quite easily.
It seems reasonable to assume that someone at Ally has thought of this, and therefore they would have security measures to prevent such fraud. That, presumably, is why the verification process exists. It is for this reason the OP assumed that no money would be withdrawn without her verifying that she owned the account; it is a reasonable assumption unless she was notified otherwise (we don't know if she was or wasn't).
Either way, Ally is doing something that exposes the customers of other banks to fraud.
@acvicari: Through the Electronic Funds Transferring system, a business can debit money from a bank account through other means without verification. Many places do it when you give them checks, many gyms do it when you sign up for auto-pay. Ally is protecting themselves by requiring the verification because the law doesn't. The law only requires that a customer be informed that their account will be debited, and the bank is on the hook if the debit is incorrect.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-98911-100x100.png\")
@CompyPaq: What Ally did wrong was take money from an unverified bank account. What if the OP had put in a number for someone else's account?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-318831-100x100.png\")
@CompyPaq: Anld whatd if the OP had made a slightly greater error in typing in her account number, and entered someone else's account number? Would what Ally did still be ok with you?
@Difdi:
That's not what happened here - the OP entered the correct number, and authorized Ally to debit her account. The verification is more for Ally's protection - if the OP DID put someone else's number, Ally would be on the hook and have to repay the back.
This only confirms my habit of only making a small transfer during set up of online accounts, and then moving over the large amount once I'm convinced everything's set up.
It is rather scary that they would take money before verification though. What if you had accidentally (or on purpose) entered some other user's account number? I wonder if they verify the name on the account or anything like that.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-34627-100x100.png\")
@tamaracks:
Yeah, when I set up my Schwab account they wouldn't let you transfer any amount until the verification process was complete.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-263779-100x100.png\")
What I'm curious about is the \"small amount\" that they transfer to verify the accounts. I just went through this with them in reverse (moving money from an Ally account to my local bank) and they did put through two small deposits first that added up to $0.25. They were not reversed, nor did the money come out of my Ally account. Does that mean a bank just GAVE me $0.25? Hmmm... If you rinse and repeat this verification process, can you make real money at this? ;0
@tripnman is a pizza thief: As I remember there was a story in the last few years about a gentleman who setup a series of accounts and did just this. He managed to amass quite a bit of money once he automated the process.
@FatLynn: @tripnman is a pizza thief: Google enough and you will find someone convicted of using an automated program to do this for over $100k. I think they got him on unaithorized use (hacking) because of the tos.
Sorry, too lazy to find
@FatLynn: Well, if they report it as interest income, I only made $0.15.
Should have known someone had already tried this.
My credit union allows me to link external accounts. Their verify process both deposits and WITHDRAWS small amounts! They make you acknoledge this in a disclaimer, but what if someone mistyped someone else's already overdrawn account? The deposits wouldn't cover the withdrawls if the balance were negative resulting in overdrafts! If they really don't want to give the money away why not just deduct $1 from my checking and credit the difference of the small amounts after verification is complete?
Looking for serious responses here-- is Ally legit? I'm *incredibly* wary of dropping cash in online-only banks (did so with eTrade, that was a mistake), does any one have any argument for/against opening some CDs at Ally?
Their rates are some of the best right now.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-129212-100x100.png\")
@savvy999: FWIW, eTrade isn't online only - they have a handful of branches where you can deposit checks, etc. As to your question, I have a savings account with Ally and have had no problems moving money in and out. IIRC, the verification process was for moving money out - you can move money in with your first transfer unverified (as the OP did accidentally), but to get money out you need to verify the account you're moving it to.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-537475-100x100.png\")
@savvy999: Technically, USAA is online-only. They have only one branch, in San Antonio. I'm a little wary with signing up for USAA because being non-military, I don't have access to all the features, the most important of which (since they have only one physical location) is depositing online.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1481383-100x100.png\")
@savvy999:
Ally is FDIC insured. Stay under the limits and you're as safe as any brick and mortar bank.
@savvy999: I currently have an online savings account and a few laddered CDs with them and have had no issues at all. They do have some of the best rates out there, so I'm slowly siphoning off dollars from by BoA accounts and dropping them with Ally. If you didn't know - Ally was GMAC Bank, they changed their name when the auto companies received their bail outs.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-87038-100x100.png\")
@savvy999: I have been had some accounts with Ally for about 6 months and so far have no complaints. I didn't have this verification SNAFU when I created my account, but I don't remember if I scheduled a big transfer before the verification or not. (I expected things to drag on during the verification as they did years ago when I set up my ING account.) Ally's rates are relatively good, and since I unfortunately don't have huge piles of money I'm well within the FDIC-guaranteed amounts so I'm not very worried about their long-term viability.
Why even keep doing business with them? They didn't verify your account, I'd shut it down and tell them where they can stick the $35!
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-812791-100x100.png\")
@Aaronjk: Well, the $35 charge is from the OP's original bank, not Ally. So no matter what, she's on the hook for that amount.
Anyway, they do verify accounts. It's just that they do the withdrawal before the verification process is complete. If the account ends up not verifying, they would have to return that money.
It's a tough call whether or not Ally should be held responsible. On one hand, it was the customer's mistake, but on the other hand, she did try to correct it immediately and logically thought it wouldn't be an issue since she hadn't yet verified the account.
Man, that Sanjay Gupta is good at so many things!
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-1034061-100x100.png\")
The verification is mostly for protection against outbound transfers from Ally, since Ally is mostly interested in protecting itself and its own customers. I don't know why Suzette has a problem with Ally, since it is her checking account that requires no verification, and which is now charging an extortionate fee. Though the outcome was unclear, Suzette did make the error, and since she didn't cancel the transfer, she is on the hook for the \"courtesy overdraft service\" her bank generously provided.
This exact same thing happened to me earlier this week. I decided to open a CD with Ally Bank, and thought that they would first verify the minute deposits (much like ING Direct does) before making a withdrawal.
Imagine my surprise when the amount was immediately withdrawn. It's a good thing that I keep an eye on my accounts. I contacted Ally the same day, and also got a song a dance about how \"we make the withdrawal immediately in order to assure current market rates\". I asked the customer service rep whether they worry about making withdrawals from an account before verifying that it is the correct account, and she couldn't provide a straightforward answer. I again asked if this is how Ally does business, and she insisted that it's to the benefit of the customer.
All I see is a bank desperate to get funds into their hands.
I'll be writing a letter to the above listed address as well.
I foresee this biting Ally in the arse really fast.
@pat_trick: You're complaining because you started earning interest on your CD sooner? Send it all to me, and I'll be happy to open a CD for you in 50 years.
@morlo: Hahaha, no, I'm complaining because it also overdrew my account. Fortunately I bank with a credit union and had sufficient funds in my savings, so they did supply the funds, and dinged me all of $1 for the trouble.
Lesson of the story: Bank with Credit Unions. They tend not to have crazy fees.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-328687-100x100.png\")
I opened an Ally account at the end of October. I don't remember the whole process of opening your account, but I definitely knew that the initial funding was immediate and the linking of accounts is a separate process. She probably didn't read the fine print. My withdrawal came before the verification process.
I actually had an issue too - I transposed two numbers and it was denied. Someone from Ally called me up and told me what happened and we fixed it over the phone. It was very courteous and fast. I highly recommend them. They have great customer service.
BTW - the two times I called and the one time I chatted with them I found that their agents are American and English is their first language. (I actually don't have a problem understanding outsourced agents, but many people do, so I thought I would point it out as a plus.)
@sprocket79: Oh and since I opened my account, the interest rate has increased from 1.55% to 1.64%. Meanwhile, my old eTrade account is still at .5%.
@sprocket79: That was a little anomaly. The rate dipped down from 1.7% to 1.55 (the same as the MM rate, which the savings is supposed to exceed) for 10 days before going back up--but not all the way back up--to 1.64%
It used to be GMAC, that explains everything. GMAC was horrible!!! They also own the rip-off mortgage company Ditech, enough said.
When I worked for a mortgage broker, GMAC was the worst bank to deal with. They screwed a couple of our borrower and brokers. Finally, we refused to do business with them.
I don't get it. We have a company - a bank that has good customer service and transfers our money when we request it without holding it or doing any other sort of shenanigans. Yet we are blasting them for what imho and in theirs is a customer centric policy.
What next, they change their policy and somebody writes in because they took too long to verify the transfer and the interest rates on their CD went down??
@Difdi: I actually did that. I transposed 2 numbers. My bank denied the transaction and Ally called me.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-125589-100x100.png\")
what's the point of verifying the account if they're going to allow transactions on it anyway? What if she never verified the amounts? Would they continue to draw money? I have a feeling they would, since they tried to like 5 times.
@DeeJayQueue: I would imagine that although they withdrew the money immediately, they wouldn't make it available to the customer until the account was verified.