TMC is an independent, primarily volunteer organization that relies on ad revenue to cover its operating costs. Please consider whitelisting TMC on your ad blocker or making a Paypal contribution here: paypal.me/SupportTMC

Alliant CU bait and switch

Discussion in 'Off Topic' started by Zooomer, Sep 29, 2016.

  1. Zooomer

    Zooomer Member

    Joined:
    Apr 3, 2016
    Messages:
    13
    Location:
    grand rapids mi
    My Tesla journey is 3 years in the making from when I flew out to LA to test drive one.
    Clicking off the list of things the car didn't have that I wanted, I finally pulled the trigger on a P100d. 150k
    This was not a decision I made lightly, as I am a conservative guy.
    Saving you the details, FF to me emailing Alliant based on them being the goto. Aug 28th, I get a reply:
    ----------------------------
    Tuesday, August 30, 2016 7:38 PM
    We have you pre-approved for $150,000 at 3.24% over 84 months. We can Offer 1.49% for 72 months and 1.74% for 78 months. The rate is locked for 30 days. After 30 days we will need your authorization to re-pull credit. If your credit score has changed significantly or our offered rates have changed, you will be approved at the applicable rate at that time. The rate already includes the 0.40% rate discount for automatic monthly payment.

    I will need the following documents from you:
    1. Your 2 most recent paystubs
    2. Your 2014 and 2015 W2s
    3. Tesla Vehicle Configuration (you would have received this when you ordered your Tesla. It shows the price with applicable options)

    At the time of loan closing we will also establish a savings account for you as Alliant Credit Union membership stems from the savings account and you have to be a member to finalize the loan. Alliant will make the initial $5 deposit to the savings for you. You have to maintain the $5 minimum balance at all times to maintain your membership.

    Finally, I encourage you to take advantage of our GAP Advantage for $399.00 (brochure attached) for loans $100,000 or less. Given the unique nature of the Tesla in terms of there not being an established secondary market, insurance companies do not have the required data and research to underwrite them if stolen, totaled, or considered a total loss. GAP Advantage also provides you with a $1,000 credit towards the financing of a replacement vehicle when deemed a total loss if financed with Alliant Credit Union. At no additional cost when taking advantage of GAP, we are including Auto Deductible Reimbursement (refer to ADR brochure attachment) which pays up to ($500) per Loss when a loss is filed and paid by the auto insurance company. GAP Advantage can also be wrapped into the loan which equates to $5.00 per month.

    Please feel free to take a look at the brochures and feel free to give me a call if you have any questions.

    Daniel Tovar
    ------------------------
    I thought the process was a little easy but ordered the car and got the normal email updates. About 2 weeks ago, I called and said 'hey, do I need to fill out paperwork or do anything? I haven't heard from you'. Daniel tells me, no we're all set. You just sign when you get the car.
    -So I worked lightly with Tesla and tomorrow 9-30 is the day they are delivering it. They are asking me about financing and I put them in touch with Daniel.
    So tonight 9-29, I get a call at 7:41PM. Kind of late for a bank but whatever.
    They put me through verifications and tell me we're all set for a payment of 19xx at 3.x% for 84 months. I reply, no. Check your emails. I replied and told you I wanted 72 months at 1.49%. He says OK, let me change that and puts me on hold.

    He then comes back on line about 10 min later and says 'your credit score changed so we can still do the loan but now your rate is 6.5%!!!!
    Obviously I'm upset and tell him that this is bait and switch and I take delivery in 16 hours! He talks down to me like I'm an idiot trying to explain rates and credit scores.
    So basically my agreed rate of 1.49 went to 3.x% then ten min later to 6.5%. I ask him, how do I know it won't change again tomorrow (I do real estate and have seen banks try to change at the table). He says they wouldn't do that, I reply 'well, you already did and clearly can't be trusted'. He gave me some more customer service speak and I just hung up.

    I realize this has nothing to do with Tesla and will probably just call my reg bank in the morning who was like 2.5% but people hear need to know the story of Alliant. I know many/most have had good experiences. I did not. They are shady as all getout and change their statements as bad as our 2 political candidates. /rant
     
    • Helpful x 1
  2. Akikiki

    Akikiki A'-Lo-HA ! y'all

    Joined:
    Nov 26, 2012
    Messages:
    1,605
    Location:
    Kaneohe
    Sorry about the difficulties you have had with Alliant. There are others. You would need to check the rates and find what's best for you.
    I suspect Tesla would postpone deliver while you double back and pickup at selecting a source.
    I would recommend you try.

    Penfed.org
    Energyfcu.org
    usalliance.org

    These C.U.s have been used by other owners seeking financing over the last few years as they reported about it themselves.
    Let us know what your outcome was, please.
     
  3. liuping

    liuping Active Member

    Joined:
    Jul 23, 2013
    Messages:
    1,858
    Location:
    San Diego
    I had no problems dealing with Alliant Credit Union for the loan on my first Tesla. The whole process was super easy and went very smoothy.

    Sorry to here it was not the case for you.

    Just out of curiosity, how much did your credit score change between the initial offer and the last minute change?
     
  4. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,656
    Location:
    Fairfax County Virginia
    My experience over three purchases with Alliant has been outstanding. They only lightly pushed GAP insurance which I have with my car insurance policy, so I politely declined.

    I would move this up the management chain at Alliant, they seem to be easy to work with, sorry your delivery was spoiled by a poor financing experience - after you get the car you will be in a much better mood...should take about 2.5 seconds to get a smile on your face.
     
  5. andrewket

    andrewket 2014 S P85DL, 2016 X P90DL (soon 100)

    Joined:
    Dec 20, 2012
    Messages:
    5,043
    I've had 3 loans with Alliant. All super easy, and great customer service. You're entitled to know your score from Alliant, and they'll likely tell you the score required for the best rate (if memory serves they want 760+, and a history of large car loans.) It's possible you were right on the fence before. Keep in mind the previous Alliant inquiry will reduce your score a few points. You might ask them to take that into consideration.
     
    • Helpful x 1
    • Like x 1
  6. steve841

    steve841 Active Member

    Joined:
    Jan 17, 2010
    Messages:
    1,397
    Location:
    Ft. Lauderdale, FL
    Just did a deal with Alliant today. Zero issues. Sorry.
     
  7. RedP85+

    RedP85+ Member

    Joined:
    Apr 26, 2016
    Messages:
    58
    Location:
    Ottawa, Canada
    I had a bad experience with TD and BMO in Canada too. No where near as bad as yours though. I tell every person I can about it. By letting people know their practices is the only way we can get any change.
     
  8. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,656
    Location:
    Fairfax County Virginia
  9. liuping

    liuping Active Member

    Joined:
    Jul 23, 2013
    Messages:
    1,858
    Location:
    San Diego
    Without knowing the OP's credit score drop, I hesitate to blame Alliant CU or even criticize their practices.

    If your score drops below the threshold for a specific rate after the lock period is over, the rate will go up at any bank. That is not shady as the OP implies, it is how rate locks work. 9/30 is 31 days after 8/30 when the rate was locked for 30 days. Bad luck to miss by a day, but it happens.
     
  10. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,656
    Location:
    Fairfax County Virginia
    The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook(link is external), follow us on Twitter(link is external), and subscribe to press releases for the latest FTC news and resources.
     
  11. Xenoilphobe

    Xenoilphobe Active Member

    Joined:
    Jan 2, 2014
    Messages:
    1,656
    Location:
    Fairfax County Virginia
    Its very shady to go from 1.49 to 6.5 in a period of less than 30 days. As you stated we don't know all the details - but I would still file a complaint so it can be tracked to see if others are experiencing the same behavior. Something smells, either the OP isn't sharing full details or someone could have made a mistake at ACU. What do you have to lose by having someone check it out?
     
  12. virtualsmack

    virtualsmack Member

    Joined:
    Jun 22, 2016
    Messages:
    45
    Location:
    SoCal
    same thing happened to me. pulled credit in May and was approved at 72 mo @ 1.49. they told me I should be all good when my car comes in and to just call them then. my score was 805 then.

    decided to give myself some buffer and called 2 weeks earlier than I could have (last week) and they told me that my score dropped to 690 and my rate was now 5%.

    what was really annoying was they told me something was wrong w my credit and that I needed to work with equifax to fix it. so I just bought my credit report and lo and behold, it's 822 at all 3 bureaus.

    after sharing this w the alliant rep they tell me, "oh we use a different calculation". I've heard of other lenders doing that but my report also shows no inquiries or changes to my credit usage or ratio. I figured that they just have a lot of demand so by changes their calculation or something. their business so they can do what they want but they could have been transparent w me or at least not speculate if they don't know the answer and blaming it on my credit.

    went w bofa. 2% so over the life of the loan it's not huge. there was another thread here about alliant changing things on ppl last minute too.
     
  13. Firewired

    Firewired Member

    Joined:
    May 23, 2013
    Messages:
    367
    Location:
    San Antonio, Texas
    I just closed with Alliant several days ago. Was exceptionally easy for 100% loan and surprisingly without the need of proof of income.
     
  14. Snerruc

    Snerruc Member

    Joined:
    Apr 16, 2016
    Messages:
    228
    Location:
    Kailua kona
    Just used Alliant myself. I had no problem with them. I was surprised that Tesla delivered the car before the Alliant paperwork was even drafted! I had the car for 5 days before Alliant shipped the money.
     
  15. liuping

    liuping Active Member

    Joined:
    Jul 23, 2013
    Messages:
    1,858
    Location:
    San Diego
    #15 liuping, Sep 29, 2016
    Last edited: Sep 29, 2016
    The rate was locked 8/30, the car was to be picked up 9/30. Unfortunately that's 31 days. If his FiCO score dropped during that time, Alliant did nothing wrong or shady. He needs to request his score from them and see what up.

    The whole credit score system is a bit of a scam, IMHO, but it's the way the game is played at all banks, so it's not Alliant's fault. John Oliver did a piece on credit reports a while back, which is worth a watch:

     
    • Like x 1
  16. fallen888

    fallen888 Member.. hehe, I said "member"

    Joined:
    Jul 27, 2016
    Messages:
    468
    Location:
    Philly(ish), PA
    I just financed with Alliant a month ago. Mine was a very smooth and easy process. I couldn't have asked for a better experience.
     
  17. Wknapp0924

    Wknapp0924 Member

    Joined:
    Jan 17, 2016
    Messages:
    154
    Location:
    Oceanside, Ca
    Logix Credit Union was quick and easy and I locked in a great rate.
     
  18. Mike K

    Mike K Member

    Joined:
    May 15, 2013
    Messages:
    610
    Location:
    Los Angeles
    For you to go from a 1.49% rate to 6.5% would likely represent a bump up through a couple different risk brackets which is unlikely unless the OP had something derogative suddenly appear on his credit report. The fact that he followed up with them after not having heard anything and was given the all clear, only to have Tesla tell him today that financing wasn't even finalized, just adds insult to injury. I agree that it's technically wrong and probably not shady but it's pretty poor followup, especially when he reached out to them just to get the all clear. And it's not even like the difference is a small amount of money. It's $24,600 over the life of the loan. That's my entire 2 year lease just in his difference in interest.

    I almost wonder if you can't push the issue with them. Even at 2.5% you're needlessly paying $5000ish more over the life of the loan. Ask them what change occurred that they're basing the decision on and challenge it. Tesla also REALLY wants you to pick that car up tomorrow so you might get your delivery specialist involved to see if he can persuade them.
     
  19. liuping

    liuping Active Member

    Joined:
    Jul 23, 2013
    Messages:
    1,858
    Location:
    San Diego
    I agree and that seems strange. But Alliant CU has done the loans for thousands of Teslas and complaints a extremely rare, while praise for them is easy to find. This is not their normal operating procedure. I suspect there is more to the story than the OP posted.
     
    • Like x 3
  20. RedP85+

    RedP85+ Member

    Joined:
    Apr 26, 2016
    Messages:
    58
    Location:
    Ottawa, Canada
    Sure but I would never deal with a bank that is that unforgiving. The delay was not his fault. Really, stupid not to use common sense here.
     

Share This Page