Ally Financial Inc. (2024)

FAQs

What is the Ally Financial controversy? ›

The CFPB ordered Ally Financial Inc. and Ally Bank to pay $80 million in damages to African-American, Hispanic, and Asian and Pacific Islander consumers harmed by Ally's discriminatory auto loan pricing, and $18 million in civil money penalties.

Ally works with more than 23,000 dealers nationwide. Scores as low as 520 can qualify for loans: You can get approved for an Ally loan for a new or used vehicle at a dealership with FICO scores as low as 520.

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Your money is safe with Ally Bank because it is FDIC-insured. This means that your funds in Ally deposit accounts are insured up to $250,000 per person, per ownership category if the bank goes out of business.

The volatility surrounding regional banks last year has impacted Ally Financial, but the stock has recovered nicely, gaining 77% since its March 2023 low. The bank stands to benefit from a pivot in the Federal Reserve's interest rate policy, but investors must also keep a close eye on its credit quality.

CFPB and DOJ order Ally Financial and Ally Bank to pay $80 million in damages and $18 million in penalties for discriminatory auto loan interest rates.

With a bad credit score, you'll likely be offered some of the highest advertised rates. According to data from Experian, borrowers in the subprime category (a FICO score between 501 and 600) can expect an average rate of 12.28 percent for new cars and 18.89 percent for used cars.

Ally Bank FAQs

Yes, Ally is safe to use for online banking. It's an FDIC-insured financial institution, so up to $250,000 per depositor per ownership category is secure in a bank account.

Minimum credit score needed for each mortgage loan type

For most mortgage types, the minimum credit score requirement is 620. This would put you in the “fair credit” range using the FICO score model. (A good credit score is 670 or higher, according to FICO.)

Ally offers an online preapproval process that reportedly takes as little as three minutes and only involves a soft credit check, so your credit score won't be affected.

Can I transfer money from Ally Bank to another bank? ›

We charge a $20 fee when you wire money from your Ally Bank account to another bank. We'll refund this fee if you're wiring money from your Ally Bank account to your Ally Invest account.

Ally also support ACH of course, and it also support periodic ACH transfers. The best thing is, the ACH transfer limit of Ally is so big. Other banks, for example, Chase, has a limit of $10,000/transfer and $25,000/day. On the other hand, the limit of Ally is $150,000/day and $600,000/30days!

Ally Financial, like most financial institutions, considers your credit score when deciding whether to approve your application for loans or credit cards.

In addition to offering a higher APY than conventional banks, another great selling point of Marcus is that there are no additional fees attached to opening an account with them. However, Ally charges an additional $25 for an overdraft and other fees, such as a $10 excessive transaction fee.

What are the disadvantages of Ally Bank? Ally Bank is an online-only bank without any physical branches or the ability to make cash deposits. If you need physical locations and the ability to deposit cash, then it's probably best to go with a traditional brick-and-mortar bank instead.

Named plaintiff David De Medicis sued the bank in 2021, arguing that the security of his account and the proposed class members' accounts at Ally were compromised by a data breach in which a code error revealed Ally customers' names and passwords to third parties involved in business relationships with the bank.

Ally Bank is a member of the Federal Deposit Insurance Corporation (FDIC). The FDIC protects your Ally Bank deposits up to $250,000 per depositor for each qualifying account ownership category. This means you can rest assured that your deposits are safe up to FDIC limits, no matter what's happening in the economy.

Sheridan v. Ally Financial, Inc.

A class action out of West Virginia claims Ally Financial, Inc. has “routinely” collected unlawful payment processing fees from borrowers who make monthly auto loan payments online or by phone. Ally Financial, Inc.

In May 2009, GMAC Bank was rebranded as Ally Bank. In May 2010, GMAC re-branded itself as Ally Financial.