As featured in The Wall Street Journal, Money Magazine, and more!
     

GMAC Changes Name to Ally Financial

This article was written by in Banking. 6 comments.


A year ago, GMAC Bank, or its brand, ceased to exist. In order to distance itself from its parents, General Motors and GMAC Financial Services, the bank changed its name to Ally Bank. With government funding, Ally Bank went on to become a competitive online bank, offering interest rates high enough to draw the ire of the American Banking Association and a warning from FDIC. Here’s my recent review of my experiences with the bank.

Following the success of Ally Bank, the parent company is jumping on the “brandwagon.” GMAC Financial Services, offering primarily auto loans and mortgages, is becoming Ally Financial. GMAC is celebrating a return to profitability with first quarter earnings of $162 million. With continued profitability, Ally Financial will eventually pay back the government for both loans and other government investments.

From a brand standpoint, the name change is a good idea. The General Motors brand has been somewhat poisoned by politics. When the government relinquishes its control over GM, I wouldn’t be surprised if a full re-branding follows soon after.

How does Ally Motors sound?

Updated October 19, 2011 and originally published May 4, 2010. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.

Email Email Print Print
avatar
Points: ♦127,550
Rank: Platinum
About the author

Luke Landes is the founder of Consumerism Commentary. He has been blogging and writing for the internet since 1995 and has been building online communities since 1991. Find out more about Luke Landes and follow him on Twitter. View all articles by .

{ 6 comments… read them below or add one }

avatar Investor Junkie

Personally I like Government Motors better.

Reply to this comment

avatar Apex

If they want to shed the GMAC association now I am not sure why they would want to take it back as soon as the the govt is out of the picture.

Besides, having a name that makes it clear you are a financing arm of a car manufactor seems like it will put assumptions in people’s heads that would cost you business. For example, I need a mortgage, where am I going to go? GMAC? Huh? thats for car loans. Well it turns out they do mortgages but some people will just assume they don’t (I have a GMAC loan now but only because it’s through ditech and they use GMAC on the backend, but I would never have thought to go to them because their name implies they are a targeted lender).

If they saw the value in rebranding, I can’t imagine they would want to go back, unless they think the brand GMAC has more value, but if they do why would they shed it now? Any stigma associated with GM is likely to not wear off quickly.

Reply to this comment

avatar Luke Landes ♦127,550 (Platinum)

I didn’t get the impression that Ally Financial will brand itself back to GMAC. That’s exactly why: a company that offers more than just auto loans should want to drop the brand that identifies them to an auto maker, particularly to a current unpopular one. My speculation takes this farhter rather than backwards; once the Government is out of the picture, GM itself may want to follow suit and distance itself from… its self… or its former self.

Reply to this comment

avatar Doug

Gee, I think I would never touch “Ally Bank” with a 20-foot red-hot-poker, let alone let them have my money. GMAC was a total disaster. It’s completely controlled by GM’s unions and it’ll never repay its TARP money.

Ally bank continues this proud legacy with its “holding company” status that lets it invest in all kinds of risky transactions. I imagine they’re just snapping up the FHA-insured, Freddie-purchase loans that Obama keeps writing.

Put your money in GMAC? What are you smoking? If you give Ally Bank your savings you’ll be desperately trying to claim it from the FDIC again next year.

Reply to this comment

avatar Sandii

I so agree DOUG…. GMAC stole my mother”s home away from her pretending to assist her with a modification under this Obama Plan and continued to send 5 work out packages that she filled out and returned to GMAC by fax and mail. In addition the constant phone calls and communication with many rude and clueless reps that never had a supervisor available. After being placed on hold,45- to 1 hour wait at a time some how the phone was always hung up !!!! GMAC give consumers a fax , mailing address, and return address that they always claim was never received. LOL or if caught they are caught misappropriate the truth they then might and say that the W-09 is illegible,or the next lie sorry untruth would be they called you back several times and the phone that you are standing by waiting to speak to some that would straighten out the mess to keep a roof over your family’s head never rings, or they might just play a game of ping pong with the phone until they just hang up.ect ect and that gives them the opportunity to continue to lie constantly and tell consumers the foreclosure notices are just computer generated and no one is going to sell your home! Mean while they are cutting a deal with a third party to purchase your home at an auction almost 200,000,00 under marker cost. There are over 500 complaints just like ours. We are in court fighting now. Hey Doug I suggest that anyone that deals with them should get some KYjelly

Oh by the way … What Obama tried to do was great, but who was suppose to regulate it again??????????? Oh we trusted the Banks to treat the American people right LOL

Reply to this comment

avatar Mutiu Adebowale

pls, i dont want to be unpolite but if nothing is done for my case , i may have to take a legal option. I bought a kia which was financed by GMAC now ALLY. My car was repossed and i paid the outstanding with all charges and i got my car back within a week. Two months later , i completely paid for the car and i was issued the Certificate of ownership that is the Title to the vehicle. This was in september 2010. However ALLY / GMAC refused to correct this in my credit report that the car has been fully paid for and this really affects me NEGATIVELY. Please I will appreciate it if the company ALLY / GMAC can help correct this with ALL the Credit Reporting Agencies. Thanks

Reply to this comment

Leave a Comment

Connect with Facebook

Note: Use your name or a unique handle, not the name of a website or business. No deep links or business URLs are allowed. Spam, including promotional linking to a company website, will be deleted. By submitting your comment you are agreeing to these terms and conditions.

Notify me of followup comments via e-mail. You can also subscribe without commenting.

Previous post:

Next post: