Have you ever heard of Ally Bank? Probably not, but it is being advertised very heavily these days.
What is your bank trying to sneak by you?, they ask. Fine print? Asterisks? Not Ally. They promise “no sneaky disclaimers ever.”
But who is Ally Bank? Clicking “the Ally Story” link on their website, reveals who they really are:
*MOUSE PRINT:
“We are Ally Bank. Built on the foundation of GMAC Financial Services”
When asked to explain that somewhat flowery language, Ally’s customer service department responded, in part:
Ally Bank was formally known as GMAC Bank. The launch of our new name was on 5/15/2009.
Ally Bank is a separate company from General Motors (GM). Ally Bank is a part of GMAC Financial Services, which became an independent company in late 2006. GM holds an equity stake in GMAC, but is reducing its ownership equity due to the federal requirements of GMAC becoming a Bank Holding Company. GMAC provides financing to automotive dealers and customers, but they do not directly finance GM. The companies have separate banking relationships.
So this is really GMAC Bank with a new name. So why did they change their name away from GMAC Bank?
” — We do not own gmac.com, and we do not own the “GMAC” name as it is leased from GM.
— We decided to invest in building a new brand, since we are going to increase our marketing of the Bank to raise retail deposits.
— Our research showed that GMAC brand recognition was largely limited to existing and past customers. We wanted a bank brand name that would have potential for eventual global growth.
— Perhaps most importantly, to launch a unique online bank with a unique customer offering, we felt that it was important to create a truly unique brand – one with a name that means something to the customer and speaks to our business philosophy of working with customers to make money, not against them.” –Manager, Global Marketing Communications
Or, just maybe people were reluctant to deposit money with what was better known as an auto finance company with the name “General Motors” in its title?
In any event, they have savings products that pay higher rates of interest than almost anybody. Their savings account currently pays 2.05% (down from 2.25% just last week), and they have a money market checking account paying 1.90% (limit six checks/withdrawals a month). The latter account also comes with an ATM card, and they will reimburse other banks’ ATM fees for the first four transactions a month, up to $6 a month. And, of course, individual accounts are insured by the FDIC for up to $250,000.
I have been hearing about AllyBank and when I saw this post, I thought it was going to be a big expose. I would think anyone thinking of opening an account there would do some research beforehand. I don’t see anything in their changing their name. Who wants to be associated with GM especially when you are not affiliated with them.
I don’t think this is a big deal. I’m surprised they didn’t change their name sooner. They aren’t GM, they aren’t a part of GM, and as they pointed out, even with the spin-off, they don’t own the name “GMAC”. What company would want to continue leasing it’s name, it’s brand identity from another company? It certainly doesn’t seem like they’re trying to hide this connection; “Read Our Story” is featured prominently in the middle of the screen.
“Ally Bank was formally known as GMAC Bank”
Hmm, ya think they meant “formerly”?
I agree with the two previous posts. What would you do if you resurrected a bank that previously had a name associated with failure and bankruptcy? I think the Ally response is entirely appropriate–they could have lambasted their predecessor as part of their response, but chose not to. And I like their choice of names. Looks like they’re really trying hard to establish a bank with some nice customer benefits–not easy to achieve these days.
I don’t have the idea that they’re actively trying to hide that they were GMAC. They changed their name. For a good reason.
So, they are changing their name, big deal. The fact is, they actually have best rates for CD’s, I opened two in less than a month. I received tremendous customer service. NOT like the other banks, someone actually answers the phone!! If you want to find a financial institution to piss and moan about, try B of A or Citibank. Leave these guys alone, geez!
This spring I opened 5 CD’s with GMAC in an effort to diversify my
holdings with different financial institutions as the concern over
bank failures was increasing.
Through the GMAC / ALLY transition they effectively reduced my 2.65%
APY to 2.6% APY on my CD’s. This is BULL *** Ally. I am Finance
Major and I know how to calculate NPV equations.
ALLY will never receive another penny from me. I am staying with ING.
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I requested that my large CD not be rolled over and that the funds be transferred to my checking account. Guess what? They “mistakenly” rolled it over. Now I have to make phone calls, write letters, etc. to straighten out their mistake. I agree with Matt above. Never would give them another penny.
Hey Ann, people make mistakes it happens. I undertsand in the banking industry we need to be very careful with customer’s assets, however all you need to do to fix your problem is make one phone call. I know that for a fact.