Disturbing experience with Ally Bank

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deskjockey
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Disturbing experience with Ally Bank

Post by deskjockey » Thu Nov 14, 2019 7:30 am

I'm in the middle of a problem with Ally and had to vent and (hopefully) get advice from other folks who have had this problem before. On Monday I initiated an ACH transfer from Ally (my hub account) to pull $50k from my Marcus account and deposit it in my Ally savings account. Yesterday, I logged in to Ally to see if the transfer was complete and to move a couple of thousand to a different account. Lo and behold, the money was not there and there was no trace of the transfer. I addition, when I went to the outside account page, it told me the account was locked and instructed me to call customer service.

I called and, long story short, after more than 30 minutes on the phone and multiple holds, the very polite rep said that the "back office" had flagged the account for an unspecified "issue" and gave me a case number. He said the back office would get back to me within two days, but stated he didn't know why outside transfers were blocked or where my money was (it has very clearly left my Marcus account). He apologized for Ally holding my money hostage (his words), but that's about all he could do.

This is not the largest transfer into or out of Ally I have made, nor is it the first one, but it is the first big one in about three months. I'm now angry and frustrated, as I had earmarked that money for our basement remodel and am concerned Ally could tie it up for an unknown period of time. Has anyone had a similar experience? What is the "issue" that the back office flagged the account for (money laundering? using Ally as a hub? something else?)? What should I do (if anything)?

I have to say this has made me lose all confidence in Ally as a reliable institution. I'm glad they didn't play these tricks when we moved money around to buy a car a few months ago--that would have really screwed us over--but can't trust them not to pull this stunt in the future. I'm considering closing my accounts once I straighten this out and get my money back. I'm also going to insist they pay me interest for the time they hold the money in limbo. It's not much (about $2.30 per day), but it's the principle of the matter. They deducted the money from Marcus on schedule, after all, and if they had an issue with the transaction, they never should have done that.

SlowMovingInvestor
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Re: Disturbing experience with Ally Bank

Post by SlowMovingInvestor » Thu Nov 14, 2019 7:39 am

Honestly, I think this is not an Ally specific issue. Banks may lock accounts if their algorithms pick up something, even if it's a false positive.

Very annoying, no doubt. This is where having a bank with branches can be helpful, especially if you know the branch manager.

furwut
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Re: Disturbing experience with Ally Bank

Post by furwut » Thu Nov 14, 2019 7:41 am

i guess if the money must positively get someplace by a certain time there are wire transfers for a fee. When doing an ACH transfer always a good idea to add some pad the time you expect it to arrive. This transaction getting flagged may have just been your bad luck.

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8foot7
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Re: Disturbing experience with Ally Bank

Post by 8foot7 » Thu Nov 14, 2019 7:44 am

SlowMovingInvestor wrote:
Thu Nov 14, 2019 7:39 am
Honestly, I think this is not an Ally specific issue. Banks may lock accounts if their algorithms pick up something, even if it's a false positive.

This is where having a bank with branches can be helpful, especially if you know the branch manager.
with due respect, it absolutely is an Ally issue because they're the ones that have not only locked his account but not posted his transfer.

Plenty of banks manage to transfer funds and post them. You are correct that seemingly every bank has algorithms to flag transactions that seem suspicious, but most banks will at least post the incoming funds even if they restrict access to the availability of the funds or restrict access to viewing the account until a deeper security verification takes place.

It seems that Ally and only Ally in this particular case has taken control of the funds and decided to, at least temporarily, appropriate them without evidence -- and it is appropriating them, because they have not posted a transaction in the funds' owners' account. And particularly when this isn't the first or even largest transaction that the OP has made with Ally involved, Ally's algorithm in particular is in question as are Ally's actions responding to the algorithm's signal.

SlowMovingInvestor
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Re: Disturbing experience with Ally Bank

Post by SlowMovingInvestor » Thu Nov 14, 2019 7:51 am

8foot7 wrote:
Thu Nov 14, 2019 7:44 am
SlowMovingInvestor wrote:
Thu Nov 14, 2019 7:39 am
Honestly, I think this is not an Ally specific issue. Banks may lock accounts if their algorithms pick up something, even if it's a false positive.

This is where having a bank with branches can be helpful, especially if you know the branch manager.
with due respect, it absolutely is an Ally issue because they're the ones that have not only locked his account but not posted his transfer.

Plenty of banks manage to transfer funds and post them. You are correct that seemingly every bank has algorithms to flag transactions that seem suspicious, but most banks will at least post the incoming funds even if they restrict access to the availability of the funds or restrict access to viewing the account until a deeper security verification takes place.
Good point, I agree with this. Certainly obnoxious to withdraw funds and not deposit them.

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RickBoglehead
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Re: Disturbing experience with Ally Bank

Post by RickBoglehead » Thu Nov 14, 2019 7:55 am

They have an executive office of customer service that you should ask to speak to.
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NewMoneyMustBeSmart
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Re: Disturbing experience with Ally Bank

Post by NewMoneyMustBeSmart » Thu Nov 14, 2019 8:00 am

This happened to me with SunTrust bank some 15 years ago for a larger sum. It makes one feel powerless and scared to rely on banks when they can do anything in the name of "your safety."

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HueyLD
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Re: Disturbing experience with Ally Bank

Post by HueyLD » Thu Nov 14, 2019 8:06 am

Ally standard transfers take three business days.

Is the money there today, Thursday, three days from Monday?

arf30
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Re: Disturbing experience with Ally Bank

Post by arf30 » Thu Nov 14, 2019 8:09 am

Not that it helps now, but it's generally better to "push" from the origin bank, less likely to trip fraud algorithms (this is fairly well known in the bank bonus community as they move money often). Chase is notorious for doing this.

MikeG62
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Re: Disturbing experience with Ally Bank

Post by MikeG62 » Thu Nov 14, 2019 8:12 am

deskjockey wrote:
Thu Nov 14, 2019 7:30 am

...I called and, long story short, after more than 30 minutes on the phone and multiple holds, the very polite rep said that the "back office" had flagged the account for an unspecified "issue" and gave me a case number. He said the back office would get back to me within two days, but stated he didn't know why outside transfers were blocked or where my money was (it has very clearly left my Marcus account). He apologized for Ally holding my money hostage (his words), but that's about all he could do.
I suspect the flagging was under the anti-money laundering rules. I wrote on this a month ago with regard to a call I had with a Fidelity representative here:

viewtopic.php?f=10&t=292085&p=4785976&h ... g#p4785976

Having said this, Ally not addressing this immediately while you were on the phone with them I find unacceptable. Being told to wait two days is ridiculous.

I have had unpleasant interactions with them as well, as I documented in this thread a while back:

viewtopic.php?f=2&t=259287&p=4172353&hi ... e#p4172353

I threatened to close my accounts with them over the second interaction. After that, I got a call back from a supervisor who apologized for the interaction we had, said they were totally wrong and that they would be reviewing their processes.

If in your shoes I'd call back and demand to speak to a supervisor. I'd tell them if they did not resolve the issue immediately that you would be closing your accounts with Ally once the hold was released and moving all your funds to Marcus. In fact, Marcus online savings account yielding 20bps more than Ally anyway and very easy to do business with.

You are right to be frustrated and aggravated.
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sabtastic
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Re: Disturbing experience with Ally Bank

Post by sabtastic » Thu Nov 14, 2019 8:55 am

I have had this happen multiple times over the years myself, much more so since title III of the patriot act as US bank account holders are subject to seizure any time for any reason and banks are forced to do it. This is why I only use brokerage and local banks for personal demand deposit accounts, as I so far I never had an issue despite all kinds of ACH and personal checks.

Has anyone had this problem with Fido or Vanguard?

CoastalWinds
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Re: Disturbing experience with Ally Bank

Post by CoastalWinds » Thu Nov 14, 2019 9:20 am

People move/transfer much larger sums than this every day, for a variety of reasons. Why should this be flagged at all?! And no communication from them either. I would be very upset.

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Re: Disturbing experience with Ally Bank

Post by RickBoglehead » Thu Nov 14, 2019 9:26 am

HueyLD wrote:
Thu Nov 14, 2019 8:06 am
Ally standard transfers take three business days.

Is the money there today, Thursday, three days from Monday?
Monday was a banking holiday.
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lostdog
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Re: Disturbing experience with Ally Bank

Post by lostdog » Thu Nov 14, 2019 9:34 am

I just got locked after I did a few ACH transfers yesterday and today. We're switching banks because of a move. I called this morning a few hours ago. I'm still locked out. I'll have to call again.

I guess I'm better off bringing a check into the bank.
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MikeG62
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Re: Disturbing experience with Ally Bank

Post by MikeG62 » Thu Nov 14, 2019 9:37 am

sabtastic wrote:
Thu Nov 14, 2019 8:55 am
I have had this happen multiple times over the years myself, much more so since title III of the patriot act as US bank account holders are subject to seizure any time for any reason and banks are forced to do it. This is why I only use brokerage and local banks for personal demand deposit accounts, as I so far I never had an issue despite all kinds of ACH and personal checks.

Has anyone had this problem with Fido or Vanguard?
Yes Indexfundfan documented this issue with Fidelity in the thread I first linked above (which is the reason I reached out to Fidelity in the first place).
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snowman
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Re: Disturbing experience with Ally Bank

Post by snowman » Thu Nov 14, 2019 10:17 am

arf30 wrote:
Thu Nov 14, 2019 8:09 am
Not that it helps now, but it's generally better to "push" from the origin bank, less likely to trip fraud algorithms (this is fairly well known in the bank bonus community as they move money often). Chase is notorious for doing this.
As a member of the bank bonus community, I wholeheartedly agree with this statement. I have no experience with Ally, but can confirm that all banks have their own algorithms that can lock your account at any time for any reason.

Going forward, no matter which banks you are with, I would ALWAYS push money from outside account back to your hub account, especially if there is a time deadline for paying bills etc. Push will generally take 24-48 hours and is less likely to raise the red flag (though it does happen sometimes, especially with newer accounts).

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mmmodem
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Re: Disturbing experience with Ally Bank

Post by mmmodem » Thu Nov 14, 2019 10:21 am

I don't have any advice for you.

But similarly, the last time I made a big transfer to my online bank account for my home downpayment, it took over a week to process. However, my bank was completely transparent. The entire amount was recorded on my online statement with a hold. A schedule was shown with a percentage of the transfer being unlocked as each holding period expired.

It was nerve racking the first 24 or 48 hours or so. I don't remember how long it was when the amount "disappeared" from my outgoing account until it showed up in my incoming account. I didn't expect to make the transfer Monday and see it Tuesday. I expected it to show up no later than Thursday.

MotoTrojan
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Re: Disturbing experience with Ally Bank

Post by MotoTrojan » Thu Nov 14, 2019 10:47 am

HueyLD wrote:
Thu Nov 14, 2019 8:06 am
Ally standard transfers take three business days.

Is the money there today, Thursday, three days from Monday?
+1. It’s pretty common when transferring assets to see $0 at both places for a day or more.

Millennial
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Re: Disturbing experience with Ally Bank

Post by Millennial » Thu Nov 14, 2019 10:54 am

MotoTrojan wrote:
Thu Nov 14, 2019 10:47 am
HueyLD wrote:
Thu Nov 14, 2019 8:06 am
Ally standard transfers take three business days.

Is the money there today, Thursday, three days from Monday?
+1. It’s pretty common when transferring assets to see $0 at both places for a day or more.
That has not been my experience with ally and my local bank's checking account. Transfers take 1 day, and are reflected simultaneously at both. This includes transfers larger than OP's

Katietsu
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Re: Disturbing experience with Ally Bank

Post by Katietsu » Thu Nov 14, 2019 11:26 am

Millennial wrote:
Thu Nov 14, 2019 10:54 am
MotoTrojan wrote:
Thu Nov 14, 2019 10:47 am
HueyLD wrote:
Thu Nov 14, 2019 8:06 am
Ally standard transfers take three business days.

Is the money there today, Thursday, three days from Monday?
+1. It’s pretty common when transferring assets to see $0 at both places for a day or more.
That has not been my experience with ally and my local bank's checking account. Transfers take 1 day, and are reflected simultaneously at both. This includes transfers larger than OP's
I believe you have been fortunate to always have a next day transfer. A standard ACH transfer is 3 days and it is common to see $0 at both places for a day or more. In the case of the OP, Monday was a holiday, so a standard transfer would arrive on Friday. Eligibility for a next day transfer is based on a somewhat vague list of things like account tenure and account activity. So I don’t think anyone should count on it. I have used a wire when a time was of the essence.

It seems possible that Ally should have better communication but I will not fault an institution for being security conscious. I have had similar holds a couple of times with different institutions than the ones mentioned in this thread.

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Re: Disturbing experience with Ally Bank

Post by kaneohe » Thu Nov 14, 2019 12:14 pm

I use broker as hub so if I have to move from bank A to bank B, it is 2 separate moves. Each move takes 1 day if placed early enough so max
from bank A to bank B would be 2 days. I don't recall any moves taking more than 1 day or any problems like OP.

atomicrc11
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Re: Disturbing experience with Ally Bank

Post by atomicrc11 » Thu Nov 14, 2019 12:25 pm

Similar thing happened to me with a online bank a couple years ago. It is definitely Ally's job to fix this, but not the only bank where this can happen.

Be persistent and ask for a supervisor. Document all contacts in regard to this noting the time, who you spoke with, Employee ID's if possible and what was discussed.

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Re: Disturbing experience with Ally Bank

Post by jeff1949 » Thu Nov 14, 2019 3:16 pm

I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.

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indexfundfan
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Re: Disturbing experience with Ally Bank

Post by indexfundfan » Thu Nov 14, 2019 3:59 pm

jeff1949 wrote:
Thu Nov 14, 2019 3:16 pm
I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.
Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
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Re: Disturbing experience with Ally Bank

Post by BogleMelon » Thu Nov 14, 2019 4:01 pm

indexfundfan wrote:
Thu Nov 14, 2019 3:59 pm
jeff1949 wrote:
Thu Nov 14, 2019 3:16 pm
I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.
Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
Can you please tell what banks you are using?
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Re: Disturbing experience with Ally Bank

Post by Horsefly » Thu Nov 14, 2019 4:13 pm

I can't speak to the issues the OP is having, but I routinely move money from our Fidelity taxable account to Ally. As I've posted here earlier, I've been seeing it recently happen in less than 24 hrs. These have usually been transfers of between $5K and $25K, and it's always gone off without a hitch. Of note, this is when I do a "push" from Fidelity to Ally. I believe I have done a "pull" from the Ally side, but it isn't often and I don't recall how long it took (if it was an unreasonable amount of time, I probably WOULD remember.

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Re: Disturbing experience with Ally Bank

Post by indexfundfan » Thu Nov 14, 2019 6:02 pm

BogleMelon wrote:
Thu Nov 14, 2019 4:01 pm
indexfundfan wrote:
Thu Nov 14, 2019 3:59 pm
jeff1949 wrote:
Thu Nov 14, 2019 3:16 pm
I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.
Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
Can you please tell what banks you are using?
I'm currently using a Fidelity brokerage account for banking.
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Olemiss540
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Re: Disturbing experience with Ally Bank

Post by Olemiss540 » Thu Nov 14, 2019 7:50 pm

indexfundfan wrote:
Thu Nov 14, 2019 6:02 pm
BogleMelon wrote:
Thu Nov 14, 2019 4:01 pm
indexfundfan wrote:
Thu Nov 14, 2019 3:59 pm
jeff1949 wrote:
Thu Nov 14, 2019 3:16 pm
I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.
Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
Can you please tell what banks you are using?
I'm currently using a Fidelity brokerage account for banking.
I recently had to wait a WEEK (banking holiday and weekend in between) to have a 1000 dollar ACH transfer to go through at Fidelity. Caused my to have to withdraw from ATM multiple times costing 12 or so dollars.

Afraid they are not the ultimate solution.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

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deskjockey
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Re: Disturbing experience with Ally Bank

Post by deskjockey » Thu Nov 14, 2019 7:51 pm

OP here. The money in theory should have shown up in my Ally account today, according to Ally's transfer tool (I made a note of that when I made the transaction) and the transaction initially showed up in the "future transactions" section of the web site. After the account got locked yesterday, the pending transaction disappeared and the money was not posted in my account today.

I called up Ally this afternoon to find out what to do next. After 20 minutes on hold, all that the rep would tell me is that the account was locked (wow, I didn't know THAT already!), there were no pending transfers, and an investigator had been assigned and would get back to me in one or two days (same story I got yesterday). When pressed, she said the investigator had only been assigned today, but would not connect me to that person or to a supervisor. The best I could do was to get her to take down my info so that a supervisor could call me "later." Surprise, surprise, that hasn't happened so far.

I'm now a very unhappy customer, to put it mildly. I will call again tomorrow to see if I can talk directly to a supervisor, but I'm not holding out hope for much progress. I'm reading up on how to file a complaint with the Federal Reserve (which I understand is the regulator for Ally), but that process can take one to two months, so it will be my last resort. One thing is for sure, I'll be taking every cent out of my Ally accounts after this and will close all accounts once my 12 month CD matures in May.

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Re: Disturbing experience with Ally Bank

Post by arf30 » Thu Nov 14, 2019 7:52 pm

Olemiss540 wrote:
Thu Nov 14, 2019 7:50 pm
indexfundfan wrote:
Thu Nov 14, 2019 6:02 pm
BogleMelon wrote:
Thu Nov 14, 2019 4:01 pm
indexfundfan wrote:
Thu Nov 14, 2019 3:59 pm
jeff1949 wrote:
Thu Nov 14, 2019 3:16 pm
I just did a pull from Alley to my Marcus account yesterday for $25k. I was surprised when they told me it would take three days instead of one day to pull that amount. The transfer will not be complete until Monday, the 18th even though the Marcus account shows today that the $25k has been debited from that account as of today, the 14th. Similar transfers to Ally from my Union Bank and my Key Bank only take one day to transfer. The only difference may be that my Marcus account is only about a month old and the others are several years old.
Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
Can you please tell what banks you are using?
I'm currently using a Fidelity brokerage account for banking.
I recently had to wait a WEEK (banking holiday and weekend in between) to have a 1000 dollar ACH transfer to go through at Fidelity. Caused my to have to withdraw from ATM multiple times costing 12 or so dollars.

Afraid they are not the ultimate solution.
If you do an ACH pull at Fidelity (or Schwab) it's subject to a 5 day hold before you can transfer it out. Again - push, don't pull.

Olemiss540
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Re: Disturbing experience with Ally Bank

Post by Olemiss540 » Thu Nov 14, 2019 7:54 pm

arf30 wrote:
Thu Nov 14, 2019 7:52 pm
Olemiss540 wrote:
Thu Nov 14, 2019 7:50 pm
indexfundfan wrote:
Thu Nov 14, 2019 6:02 pm
BogleMelon wrote:
Thu Nov 14, 2019 4:01 pm
indexfundfan wrote:
Thu Nov 14, 2019 3:59 pm

Ally is one of the few banks that still swallows your money in a black hole for a few days with their "standard" ACH transfer. Most banks do not do this anymore.

It has been reported that to enable next-day ACH with Ally, you need to have made a transfer of at least $250 in the direction you want, and wait for two months for the next-day ACH to activate. I have moved on long ago to better banking options.
Can you please tell what banks you are using?
I'm currently using a Fidelity brokerage account for banking.
I recently had to wait a WEEK (banking holiday and weekend in between) to have a 1000 dollar ACH transfer to go through at Fidelity. Caused my to have to withdraw from ATM multiple times costing 12 or so dollars.

Afraid they are not the ultimate solution.
If you do an ACH pull at Fidelity (or Schwab) it's subject to a 5 day hold before you can transfer it out. Again - push, don't pull.
Just an extremely frustrating lesson to learn.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

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indexfundfan
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Re: Disturbing experience with Ally Bank

Post by indexfundfan » Thu Nov 14, 2019 8:38 pm

Olemiss540 wrote:
Thu Nov 14, 2019 7:50 pm

I recently had to wait a WEEK (banking holiday and weekend in between) to have a 1000 dollar ACH transfer to go through at Fidelity. Caused my to have to withdraw from ATM multiple times costing 12 or so dollars.

Afraid they are not the ultimate solution.
When you do an ACH pull, most banks would place a hold on the money. The difference between Fidelity and Ally is that the money never disappears into a black hole for a few days at Fidelity. Although you cannot withdraw ithe money, it earns interest while it is on hold at Fidelity.

If you want fast ACH transfers and generally no holds, check out Alliant Credit Union.
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SrGrumpy
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Re: Disturbing experience with Ally Bank

Post by SrGrumpy » Thu Nov 14, 2019 9:09 pm

deskjockey wrote:
Thu Nov 14, 2019 7:51 pm
OP here ... I'm now a very unhappy customer, to put it mildly. I will call again tomorrow to see if I can talk directly to a supervisor, but I'm not holding out hope for much progress. I'm reading up on how to file a complaint with the Federal Reserve (which I understand is the regulator for Ally), but that process can take one to two months, so it will be my last resort. One thing is for sure, I'll be taking every cent out of my Ally accounts after this and will close all accounts once my 12 month CD matures in May.
Ugh! Sorry to hear. I feel I should close mine in solidarity. This seems like an unusual situation, I must say. Keep pestering them.

snowman
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Re: Disturbing experience with Ally Bank

Post by snowman » Thu Nov 14, 2019 9:52 pm

Olemiss540 wrote:
Thu Nov 14, 2019 7:50 pm

I recently had to wait a WEEK (banking holiday and weekend in between) to have a 1000 dollar ACH transfer to go through at Fidelity. Caused my to have to withdraw from ATM multiple times costing 12 or so dollars.

Afraid they are not the ultimate solution.
In my experience, Fidelity is the best there is. Whether you ACH $25 or $25K, it will take the same amount of time - about a week if you do a pull, and between few hours to next business day if you do a push. Pull, while not available to withdraw, is available to trade immediately - meaning you earn interest in MMF while you wait for the money to transfer. There is never a black hole like in OP's case with Ally.

I almost feel like people need to be educated on ACH, and learn the difference between push and pull. If you need the money quickly, you need to do a push to your hub account. If time is not of the essence, do the pull from your hub account and earn interest right away. They both have pros and cons depending on situation.

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anon_investor
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Re: Disturbing experience with Ally Bank

Post by anon_investor » Thu Nov 14, 2019 10:18 pm

SlowMovingInvestor wrote:
Thu Nov 14, 2019 7:39 am
Honestly, I think this is not an Ally specific issue. Banks may lock accounts if their algorithms pick up something, even if it's a false positive.

Very annoying, no doubt. This is where having a bank with branches can be helpful, especially if you know the branch manager.
I have had something happened to me at other banks before. The last time it was at my brick and mortar bank, and I was able to go in person and sort it out and get access to my money same day.

I have been with Ally for several years now and never had such an issue. All the more reason to not keep all your case in one place. I always keep some in my Vanguard sweep account, so I can push to my brick and mortar bank.

nalor511
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Re: Disturbing experience with Ally Bank

Post by nalor511 » Thu Nov 14, 2019 10:39 pm

This would upset me a lot if it happened to me, particularly if it made me miss a deal on a CD, rate lock on a mortgage, down payment on a house, days of interest, stock market upswing, etc

student
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Re: Disturbing experience with Ally Bank

Post by student » Thu Nov 14, 2019 11:06 pm

This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.

UpperNwGuy
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Re: Disturbing experience with Ally Bank

Post by UpperNwGuy » Fri Nov 15, 2019 1:28 am

student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
And this is exactly why I have never used online banks. All of my banks over the last 60 years have had a brick and mortar location within driving distance.

csm
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Re: Disturbing experience with Ally Bank

Post by csm » Fri Nov 15, 2019 8:11 am

OP, thanks for posting and I'll be watching the result with interest. I am in the process of closing on a house sale and will be pushing funds in excess of $500,000 which I had intended to split between Ally and Schwab for the FDIC coverage.

I have even contacted Ally in advance to advise them of the impending transfer and ask if they needed any documentation regarding the source of funds, or whether there was anything I should be aware of. They basically responded that there would be no problem and funds would be credited to my account when received.

I did a test transfer of a small amount this week to both Ally and Schwab and will say that Schwab posted the incoming funds one day earlier. I made the identical transfers within minutes of one another on Friday, Nov 8th (funds gone from originating account). Schwab posted on Tuesday, the 12th; Ally on the 13th. I completely forgot that the 11th was a banking holiday, so in effect, it was one banking day for Schwab and two banking days for Ally. But it was a small amount (equivalent of ca. $300 each).

I'm reassessing whether I want to use Ally for such a significant sum now. Since my Ally account is joint and I essentially have double the FDIC coverage, I was going to send the larger portion there. But now I may send it to Schwab and then split it up after it gets there. I'm just nervous about sending such a large amount in one go to Schwab since my account with them is new and it is an individual account so FDIC is capped at $250,000.

BogleMelon
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Re: Disturbing experience with Ally Bank

Post by BogleMelon » Fri Nov 15, 2019 8:17 am

I appreciate this post and wish the best of luck for the OP resolving this. This post made me transfer half of my cash savings from Ally to Fidelity. I think if a similar issue happened at Fidelity, they would have better customer service, and also their physical locations would help. Am I correct?
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

simas
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Re: Disturbing experience with Ally Bank

Post by simas » Fri Nov 15, 2019 8:33 am

student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.

student
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Re: Disturbing experience with Ally Bank

Post by student » Fri Nov 15, 2019 8:38 am

simas wrote:
Fri Nov 15, 2019 8:33 am
student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.
At the very least, you talk to the same person every time. When you come back the second time, they cannot pretend that the case is not on their system.

BogleMelon
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Re: Disturbing experience with Ally Bank

Post by BogleMelon » Fri Nov 15, 2019 8:39 am

student wrote:
Fri Nov 15, 2019 8:38 am
simas wrote:
Fri Nov 15, 2019 8:33 am
student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.
At the very least, you talk to the same person every time. When you come back the second time, they cannot pretend that the case is not on their system.
And you can easily reach a manager. Unlike getting denied that right when you ask over the phone as in OP's situation
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

simas
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Re: Disturbing experience with Ally Bank

Post by simas » Fri Nov 15, 2019 8:40 am

student wrote:
Fri Nov 15, 2019 8:38 am
simas wrote:
Fri Nov 15, 2019 8:33 am
student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.
At the very least, you talk to the same person every time. When you come back the second time, they cannot pretend that the case is not on their system.
and this would help how?? no updates, sir - we would let you know once we hear back. you are welcome to come here every 10 minutes if you wish, I would only be able to give you updates once we have them. Now what?

people greatly overestimate the 'local advantage'...

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HueyLD
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Re: Disturbing experience with Ally Bank

Post by HueyLD » Fri Nov 15, 2019 8:41 am

Csm,

Per Ally's website, there are ACH maximum transfer limits and the amounts vary depending on the frequency, and inbound or outbound.

Inboubd to Ally: $250k limit per transfer, $250k limit per day, and $1M limit per month.

Outbound from Ally: $150k limit per transfer, $150k limit per day, and $600k limit per month.

In addition, you get their standard 3-business day turnaround unless you have done transfers within the last 60 days and your account is in good standing and not new.

student
Posts: 4618
Joined: Fri Apr 03, 2015 6:58 am

Re: Disturbing experience with Ally Bank

Post by student » Fri Nov 15, 2019 8:43 am

csm wrote:
Fri Nov 15, 2019 8:11 am
OP, thanks for posting and I'll be watching the result with interest. I am in the process of closing on a house sale and will be pushing funds in excess of $500,000 which I had intended to split between Ally and Schwab for the FDIC coverage.

I have even contacted Ally in advance to advise them of the impending transfer and ask if they needed any documentation regarding the source of funds, or whether there was anything I should be aware of. They basically responded that there would be no problem and funds would be credited to my account when received.

I did a test transfer of a small amount this week to both Ally and Schwab and will say that Schwab posted the incoming funds one day earlier. I made the identical transfers within minutes of one another on Friday, Nov 8th (funds gone from originating account). Schwab posted on Tuesday, the 12th; Ally on the 13th. I completely forgot that the 11th was a banking holiday, so in effect, it was one banking day for Schwab and two banking days for Ally. But it was a small amount (equivalent of ca. $300 each).

I'm reassessing whether I want to use Ally for such a significant sum now. Since my Ally account is joint and I essentially have double the FDIC coverage, I was going to send the larger portion there. But now I may send it to Schwab and then split it up after it gets there. I'm just nervous about sending such a large amount in one go to Schwab since my account with them is new and it is an individual account so FDIC is capped at $250,000.
Regarding FDIC insurance, I assume you mean Schwab Bank. But their saving account is not competitive (rate). If you are talking about money market fund, then FDIC does not come into play.

student
Posts: 4618
Joined: Fri Apr 03, 2015 6:58 am

Re: Disturbing experience with Ally Bank

Post by student » Fri Nov 15, 2019 8:48 am

simas wrote:
Fri Nov 15, 2019 8:40 am
student wrote:
Fri Nov 15, 2019 8:38 am
simas wrote:
Fri Nov 15, 2019 8:33 am
student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.
At the very least, you talk to the same person every time. When you come back the second time, they cannot pretend that the case is not on their system.
and this would help how?? no updates, sir - we would let you know once we hear back. you are welcome to come here every 10 minutes if you wish, I would only be able to give you updates once we have them. Now what?

people greatly overestimate the 'local advantage'...
I will demand that they give me an estimated date of resolution. I won't leave until they give me an answer. Are they going to call the police and be on the 6 o'clock news. On a more positive side, if you are a long time customer, you likely know the bank manager, who likely willing to provide better customer service. I guess I am saying that squeaky wheel gets the oil.

SlowMovingInvestor
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Joined: Sun Sep 11, 2016 11:27 am

Re: Disturbing experience with Ally Bank

Post by SlowMovingInvestor » Fri Nov 15, 2019 8:50 am

simas wrote:
Fri Nov 15, 2019 8:33 am
student wrote:
Thu Nov 14, 2019 11:06 pm
This is just ridiculous. Within an online bank, one cannot even go to the branch and be in their face.
what I am confused about is the local branch is better mentality here - how is being "in their face" would help you if this is local Chase or something? You will hear, back office is looking , once we have additional updates we will call you. that would be the end, regardless of you crying, praying, threatening, laying down on the floor of the branch, etc.
If nothing else, they can verify your identity and docs quickly. If you know the manager, he or she can put in a special request for you.

Not a hypothetical, this has happened to me.

BogleMelon
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Joined: Mon Feb 01, 2016 11:49 am

Re: Disturbing experience with Ally Bank

Post by BogleMelon » Fri Nov 15, 2019 8:54 am

deskjockey wrote:
Thu Nov 14, 2019 7:30 am
What should I do (if anything)?
Focusing on OP's question, have you considered filing a claim here?: https://www.consumerfinance.gov/complaint/

Also, you may reach out to your congressman through his website. Ours have a form that I can fulfill allowing him to deal with financial institutions on my behalf to try to resolve issues. Not sure if that works, but I would give it a try if I were you.
"One of the funny things about stock market, every time one is buying another is selling, and both think they are astute" - William Feather

simas
Posts: 518
Joined: Wed Apr 04, 2007 5:50 pm

Re: Disturbing experience with Ally Bank

Post by simas » Fri Nov 15, 2019 8:55 am

student wrote:
Fri Nov 15, 2019 8:48 am

and this would help how?? no updates, sir - we would let you know once we hear back. you are welcome to come here every 10 minutes if you wish, I would only be able to give you updates once we have them. Now what?

people greatly overestimate the 'local advantage'...
I will demand that they give me an estimated date of resolution. I won't leave until they give me an answer. Are they going to call the police and be on the 6 o'clock news. On a more positive side, if you are a long time customer, you likely know the bank manager, who likely willing to provide better customer service.
[/quote]

have you ever done this or is this in theory type of conversation?? the whole 'activism' fantasies? you can demand whatever you want (including taking them all hostages, etc.) - it will do absolutely nothing. if there is update, I am sure they are happy to give it to you. if there isn't , how the branch would not give it to you? it is like coming to local car dealership (that loves for you to come by and pays you various cash bonuses to test drive their car) and demanding something they can do (I want my car to have 6 wheels , now!).

and yes, if you are disruptive to other customers/patrons - they will ask you to leave and will involve law enforcement if you do not so voluntarily (same as any other business). if you are eager to end up on 6 pm news, you may actually succeed in this along with charges levied against you. this will NOT resolve your questions you have with back office..

I think honey works better than vinegar and the whole 'I refuse to leave' will only hurt you. Figure out what is expected of you (identify verification ,etc), be polite /professional, find easiest way to do so (it could be in the branch ). work with the system and through the system vs childish threats => better results are more likely

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