ALLY Financial is TERRIBLE!

[2ss-booya]

5th 3rd bank is by far the worst....

[Snoman]

Originally Posted by PeteD

I have had no problems. I just pay online. I like to call and give the debit card payment as my money is direct deposit and that is how I do it. They do not take that kind of payment. So, I just do it online. No problems so far

100% of all debit cards have an account number and routing number. Brick & mortar major bank, AMEX/Visa pre-loads, ALL debit cards.

Log into Ally, go to "set up auto-draft", enter your routing number & account number, click confirm and submit; Done.

If they will draft a credit card like USAA will (doubt, almost NO ONE does), put it on a credit card with cash back or points.

Financing your car and house with negative interest? Investor level = 1000

[STUNNAH]

Never had a problem with Ally...Make payments online, get a confirmation # and done...

[1KillerSS]

The thing is, unless you miss your payments, how can you know if it's a bad bank anyway. All you do is send in the check, or pay it online. There was a time when I missed three months of payments on my Ally loan. I was in the hospital, and unable to bring in any income. They were threatening me with a repo.

When I got out, I told them all I could do was start making payments again, but could not catch up on the three months I was behind. Surprisingly after they talked to their supervisor, they agreed. So I avoided a repo without catching up on three months worth of payments. Tell me how many banks would be ok with that?

[frenchsquared]

I have been very happy with them for the last 2 years. Don't need to call for a payoff. Just login to your account and you can see the payoff within a small percent. There is a button to click to get the exact pay off.

I have not missed any payments either. I keep my cars 1 to 3 months paid in advance in case there every was an issue. Lowers total interest paid as well.

They even sent me coupons to skip payments.

[Snoman]

Originally Posted by 1KillerSS

The thing is, unless you miss your payments, how can you know if it's a bad bank anyway....

Most of the general populous is clueless to researching anything financialy related properly. One method is to ask how your daily interest is physically calculated. Ally is one of the most consumer friendly.

[sherob]

I've never had any problems w/ Ally... Now, don't get me started w/ Wells Fargo.

[2SS/RSD]

I have never had any problems with Ally.

[OmniCamaro]

Originally Posted by Snoman

Most of the general populous is clueless to researching anything financialy related properly. One method is to ask how your daily interest is physically calculated. Ally is one of the most consumer friendly.

Your last sentence is beyond incorrect and I don't care what anyone says. Witnessing it firsthand is all the proof I need.

And their customer service is overseas and absolutely horrible, especially if you ask a question that involves even the slightest understanding of the English language.

If someone never has any issues with payments ANY 'financial institution' will do.


Sent from my iPad using Tapatalk

[Snoman]

Originally Posted by OmniCamaro

Your last sentence is beyond incorrect and I don't care what anyone says. Witnessing it firsthand is all the proof I need.

How exactly is it incorrect precisely? Unless they have changed their business model, they re-calculate their daily interest rate when and only when you make a payment. That's once or twice a month or bi-weekly. Nearly every other financial institution on the market re-calculates daily interest whether you make a payment or not. If you believe daily recalculation is good on a loan, may I suggest a refresher finance course at your local junior college.

[BehindBlueI's]

Originally Posted by Snoman

Most of the general populous is clueless to researching anything financialy related properly. One method is to ask how your daily interest is physically calculated. Ally is one of the most consumer friendly.

Physically calculated? That's a nonsense phrase to start with unless they are using an abacus.

The difference in compounding variants and intervals is so minimal as to be a non-issue in deciding a loan or an investment if you're not dealing with hundreds of thousands of dollars over a long period of time, particularly at today's interest rates. Seriously, calculate out the difference yourself.

$30,000 car loan, 60 payments over 5 years, 3% APR.

Compounded monthly payment: $539.06
Compounded daily payment: $539.11

Yup, a nickle a month. $3.00 over 5 years.

Originally Posted by Snoman

Unless they have changed their business model, they re-calculate their daily interest rate when and only when you make a payment. That's once or twice a month or bi-weekly. Nearly every other financial institution on the market re-calculates daily interest whether you make a payment or not. If you believe daily recalculation is good on a loan, may I suggest a refresher finance course at your local junior college.

Re-calculate the daily interest rate only when you make a payment? If you're going to be snarky and tell people to hit the local junior college, at least know what you're talking about.

You do not recalculate daily interest rate on a fixed rate loan. It is the APR divided by 365 (or 360, depending on accounting method). The only way the daily interest rate would be recalculated would be if you have a variable rate loan, such as prime+4%, and that's not normally an issue with car notes.

I think what you're trying to get at is principal balance. Daily compounding is done...daily, hence the name. The interest is calculated on your current balance and then added to that balance every day. Yes, your statement doesn't show the interest added every day, it just shows you the slice of your payment pie that's principal and the slice that's interest, but calculate your effective interest rate and you'll see that's how it checks out. The difference is a pittance, though, as already demonstrated in the daily vs monthly calculations.

[L99CAMA2011]

Ally are ripoffs.

[Snoman]

Originally Posted by BehindBlueI's

...
You do not recalculate daily interest rate on a fixed rate loan. It is the APR divided by 365 (or 360, depending on accounting method). The only way the daily interest rate would be recalculated would be if you have a variable rate loan, such as prime+4%, and that's not normally an issue with car notes....

Simply incorrect sir, the "fixed rate" never changes and while payments might be made monthly, interest is compounded daily and readjusted daily. Hence the advertising "we'll give you a 3% loan then in small print the loan institution may or may not tell you about something they refer to as "effective rate of 3.25%" It's absolutely no where near a nickel per loan and across the industry it's a few billion dollars a year because most of the public is clueless. This is also one of the reasons institutions act all gracious obtaining a new loan and "suggest" that you don't make your first payment for up to 60 days, they are bending you over blind on interest.

Let me try and provide an inkling of an idea to others and I'll use student loans since this done with almost all financial institutions to people dumb enough to have consolidated their loans. "Daily interest rate" might have the term 'rate' in the language, but it is computed and stored as cash.

$50,000 Loan value
3% APR

Your loan becomes active with a $50k LV and 30 days later the first payment is made;

Day 1: 50,000.0000000000 x .03 / 365 = 4.1095890411
Day 2: 50,004.1095890411 x .03 / 365 = 4.1099268155
Day 3: 50,008.2195158566 x .03 / 365 = 4.1102646177

see where this is going?

Come 30 days to make the first $500 payment and the balance at the beginning of month 2 is $49,623.43.

However, if you make 30 payments (daily payx4 and a triple payment on friday) throughout the month of $17 of on your student loan, this does two things. Firstly, most institutions are required to report your "outstanding balance" when you make a payment, this forces them to round your balance to the penny and the statistics get funny but essentially it generally rounds down. Second, your daily interest rate goes steadily down instead of up. Because of this, the student loan balance at the beginning of month two is $49,500.

Apply this principal over the life of the student loan (10 years for most) and the pay off is 100 months instead of 120.

Of ironic note, triple check the paperwork on a house loan or any other type of long term note over $100k. I can just about guarantee you there is a clause somewhere that states you are prohibited from making more than 1 payment every two weeks. Since the institution cannot legally refuse payment as it triggers payment in full regulations, they will charge you a "processing fee". On large notes I always suggest payments match income frequency at a minimum and if not otherwise disallowed, daily pay all loans.

[BehindBlueI's]

Originally Posted by Snoman

Simply incorrect sir, the "fixed rate" never changes and while payments might be made monthly, interest is compounded daily and readjusted daily.

Interest RATE is fixed, it is not recalculated. Principal balance is recalculated. Go back and read what you first said, that the RATE is recalculated daily.

Again, compounding interval and method makes no difference on small short term loans like a car note. The difference between any major bank is going to be less than the cost of a Starbucks coffee over the life of the loan

Hence the advertising "we'll give you a 3% loan then in small print the loan institution may or may not tell you about something they refer to as "effective rate of 3.25%"

Effective rate also includes origination fees, which are significantly more important than compounding intervals. I've already shown you the differences.

If you want to figure a given rate for yourself, you can do it easily here:
http://www.calculatorsoup.com/calcul...calculator.php

Second, your daily interest rate goes steadily down instead of up.

Once again, the RATE is steady. The principal balance changes.

In your oddball daily payment plan, the savings is coming from reducing the principal amount earlier. The interest applied is less because the principal is less, not some oddball accounting trick. You'll also likely to find you're making extra payments, much like bi-weekly results in more principal deduction than twice monthly of the same amount because bi-weekly results in 26 payments vs 24.

I'm not an accountant, but was an accounting minor and did take the classes through the 300 level. It's been awhile, but this is simple stuff. Folks can listen to who ever they like, there's plenty of simple online calculators if you don't know the formulas, and if you learn to read the loan (or investment) documents, it's honestly not tough to compare loans without much of an understanding of the underlying principals. It's done so on purpose, to make it easy to compare, hence the requirement to give APY as well as APR, etc.