November 4, 2023

Ally Bank Problems and Solutions

Read more about Ally Bank
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Ally Bank is well-known for having attractive APYs and practically no fees. But, what's the catch? Read on to know what nuisances you may encounter.

Ally is an online-only bank that boasts deposit accounts with competitive rates and low fees. But, it's not all sunshine and rainbows.

Most user complaints revolve around its lack of physical branches, limited deposit options, and such.

If you have any banking deal-breakers, continue reading to find out what problems you may run into with Ally Bank.

Is Ally Bank Having Problems Right Now?

While Ally Bank has its share of problems, they're not likely to set off major alarms.

But, it pays to be aware of them so here are some concerns you should look out for:

What is the Ally Bank controversy?
In 2013, Ally Bank was ordered to pay $80 million in damages to their customers who were illegally discriminated against when they applied for loans. These borrowers with certain ethnicities were given higher markups on their loan rates than others.[1]

What problems have you encountered with Ally Bank?

No Brick-And-Mortar Branches

One of the main reasons why Ally Bank can offer a high APY is because it doesn't have any physical locations.

This means no live-person tellers or bank staff to help with your transactions, translating to lower overhead expenses for the bank.

However, this entails a purely digital banking experience which may be uncomfortable or difficult for some.

What You Can Do:
Even though Ally Bank is online only, it has 24/7 live customer care specialists. You can reach out to them anytime at +1-877-247-2559 or through the chat feature on their site or mobile app.

Additionally, Ally is known for its easy-to-navigate online banking system so you're bound to get the hang of it with just a few uses.

You can also bridge that gap by maintaining a checking account with a brick-and-mortar bank and linking it to your Ally Bank account. This allows you to do physical transactions with a traditional bank while reaping the benefits of a digital one too.

Compare Checking Account Offers

No Cash Deposits

Since Ally Bank is fully online, meaning there are no ATMs or physical branches, users are unable to do cash deposits.

This limitation makes it less accessible for those who often handle cash when depositing money into their accounts.

What You Can Do:
Although Ally Bank doesn't accept cash deposits, you can transfer funds electronically or do a mobile check deposit.

If you have cash on hand that you want to deposit in your Ally Bank account, you can consider purchasing a money order or cashier's check.

Or deposit it in your traditional bank account and write out a check. You can then deposit this check remotely through your Ally mobile app.

For check deposits via mail, send it to Ally Bank - P.O. Box 13625, Philadelphia, PA 19101-3625.[2] Do note that this is not a branch location.

No Outgoing International Wire Transfers

Ally Bank does not support outgoing international wire transfers.[3] These transactions are difficult to process because they typically require bigger infrastructure and partnerships with other banks.

However, some Ally accounts can receive international wires using the routing number (021000021) and swift code (CHASUS33) provided to overseas senders.[4]

What You Can Do:
There are several alternatives available when you need to wire funds overseas, making traditional wire transfers almost a thing of the past.

Consider using services like Wise and PayPal, which offer faster transfers and lower fees.

Linking your Ally account to these services allows for convenient and inexpensive international transfers.

Limited Loan Options

Ally Bank has both personal banking products and loans but their catalogue is far less compared to that of other banks.

They currently offer mortgages, auto loans for vehicles, and loans for medical treatments and home improvement.

What You Can Do:
If you want a general personal loan, you must look elsewhere. The same goes for small business loans.

Is my money safe in Ally Bank?
Ally Bank is a safe place to park your funds in. It is FDIC-insured, providing coverage on deposits of up to $250,000 for individual accounts and $500,000 for joint accounts.[5]

Ally Bank Products



Bottom Line

Ally Bank is a great option for those who are comfortable with the online-only banking model or those who want to deviate away from traditional banking.

While concerns may arise regarding the absence of physical branches and a few other drawbacks, having a high APY and fee-free accounts makes Ally an attractive choice regardless.

How would you rate Ally Bank's resolution of your problem(s)?

References

  1. ^ Consumer Financial Protection Bureau. CFPB and DOJ Order Ally to Pay $80 Million to Consumers Harmed by Discriminatory Auto Loan Pricing, Retrieved 08/23/2023
  2. ^ Ally Bank. Contact, Retrieved 11/6/23
  3. ^ Ally Bank. FAQ: How do I send a wire transfer?, Retrieved 11/6/23
  4. ^ Ally Bank. FAQ: How do I receive a wire transfer?, Retrieved 11/6/23
  5. ^ Ally Bank. FDIC Insurance, Retrieved 11/6/23
Discover Bank
Member FDIC

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Chase
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Bank of America
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  • Bank of America, N.A. Member FDIC.
CIT Bank
Member FDIC

CIT Bank Platinum Savings - 5.00% APY

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  • Member FDIC
Axos Bank
Member FDIC

Rewards Checking - Up to 3.30% APY

Expires 6/30/2024
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Compare:

What problems have you encountered with Ally Bank?
38% Issues with mobile and online banking
17% Slow customer service response
11% Difficulty in depositing or withdrawing funds
27% Unexpected account closures or freezes
8% I have not encountered any problems.
Source: CreditDonkey. Totals may not add to 100% due to rounding.
How would you rate Ally Bank's resolution of your problem(s)?
17% Excellent - My issue was solved efficiently.
8% Good - My issue was resolved, but it took time.
75% Poor - my issue was not fully resolved.
Source: CreditDonkey
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