Purepoint Financial Emergence Reveals Epic Alliant Fail

Kaight | Feb 28, 2017 | 1,192 posts since 2011

Alliant Credit Union is among a handful of financial institutions used as a hub by many who take a "hub and spoke" approach to managing their money. Another example of a popular hub is Ally Bank.

In a kind of failing never witnessed before by most Alliant members, Alliant Credit Union is unable to link via ACH to PurePoint Financial. Thus, those persons having their hub at Alliant are shut out from access to Alliant's customary quick and easy movement of funds between the two financial institutions using ACH.

Reasons for this Alliant breakdown are not entirely clear. Apparently it has to do with failure, at Alliant, timely to update its ACH database as related to new ABA routing numbers. Alliant's system is unable, at present, to recognize PurePoint's ABA routing number. Instead, an error message is returned and the attempted link setup is rejected. At Ally Bank, in contrast, an ACH link to PurePoint Financial can be established straightaway. Thus, those having their hub at Ally are not impacted.

Entreaties to Alliant for remediation have not brought positive outcomes. In at least one instance, Alliant has blamed PurePoint for the problem!! This situation does not reflect at all well on Alliant and is giving some long time Alliant members second thoughts about maintaining Alliant Credit Union as their hub.

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Ricochet | Mar 1, 2017 | 522 posts since 2010

I say good bye and goodnight. Short ACH times that everyone was so happy to get made it easy to move money. You using both banks? Move the money and get the job done. Having multiple accounts, the work around most of us have set up, are exactly for the reason for having done so. No need to spite the bank because the Glass Slipper didn't fit this time.

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Kaight | Mar 1, 2017 | 1,192 posts since 2011

Absent ACH linkability to hub, PurePoint offering becomes problematic. Liquid funds must be readily available for movement to CD, should opportunity arise. PurePoint offers no paper checks AFAIK. Wires cost money.

Option is change of hub, a major disruption to current money management practice. Alliant's lethargic response to this issue is not helpful. They appear asleep.

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Ricochet | Mar 1, 2017 | 522 posts since 2010

My point being that if you have alt. way of getting funds moved with little delay be proactive.
I moved funds form NFCU to ALLY to Andrews in 6 days including wknd. Usually enough time for any promo. Void of establishing an acct.
EOM

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Kaight | Mar 1, 2017 | 1,192 posts since 2011

Update:

Despite multiple requests from various members, Alliant continues to avoid addressing this dilemma. Worse, they will not even offer a time frame of when this problem will be fixed. Alliant is saying they KNOW about the failing. Regardless, they have not confronted this matter and will not provide an estimate as to when this will be resolved. Alliant's response on this one has been a real disappointment.

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Bozo | Mar 2, 2017 | 1,375 posts since 2011

I'm a bit of a dinosaur, but you'll have to explain to me what all this "ACH" stuff is about. I understand why some folks might want to transfer money instantaneously, but is it really that big an issue?

For example, let's assume I have roughly $XX,XXX in my Alliant savings account, easily transferred to my Alliant checking account with the click of a mouse. Let's assume further I have Alliant checks. I find a really good CD I want to buy. I write a check on my Alliant checking account. If truly paranoid that the rate might crash, I either get a rate-lock or send it overnight. Worst comes to worst, I ask Alliant to wire transfer. What am I missing?

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Kaight | Mar 2, 2017 | 1,192 posts since 2011

Well first Bozo, please be understanding that we all are individuals with our own peculiar approaches to solving our money management problems. One of my peculiarities, for example, is that I eschew wires because of both cost and annoyance. I have wired funds any number of times over the years. But it is not an enjoyable experience for me.

Still, as a fellow rate chaser I am well aware of the "need for speed", and wires are fast. But Alliant's overnight ACH is very nearly as fast, it is easy and simple, and it is free. Of course when funds awaiting CD investment are in Alliant savings, none of that matters. One just follows through on the path(s) you mentioned.

PurePoint, though, introduces a variation from that norm because they are offering a much higher interest rate than Alliant savings, which remains at 1% for March. Funds at PurePoint are entirely liquid, but there is no check writing. So the way out I like is, again, ACH. If a great CD pops up I can mail an Alliant check, as you suggested, and simultaneously pull overnight as much as $100,000 back from PurePoint and into Alliant before the check reaches its destination. So I still have the advantages of Alliant liquidity but with the much higher PurePoint interest rate. It's a great and very workable solution, at least IMHO.

However, the entire construct falls apart without ACH. Without ACH, PurePoint becomes the "roach motel" of financial institutions. But wait, you say, why not push the funds from PurePoint via ACH instead of pulling them from the Alliant side? Here again it comes down to personal preference. Mine is to avoid providing PurePoint with my Alliant account numbers. Additionally, I have years of experience using Alliant ACH. I know it is a dependable overnight service. I have zero experience with ACH transfers initiated at PurePoint. Alliant is, and for many years has been, my hub. It is a reliable hub. I trust Alliant for efficient and speedy handling of my transactions. PurePoint, OTOH, is an unknown.

So bottom line, for me at least and I guess for others as well, we needed to be able to link Alliant and PurePoint. Inability to perform that link was very frustrating, and it was costing me money. Going forward: problem solved. And I am grateful.

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Kaight | Mar 2, 2017 | 1,192 posts since 2011

Great news! Alliant has fixed the problem. This is a wonderful help, and as a long-time Alliant member who wishes to retain my Alliant hub, I am very grateful. It gives pause to be losing money every day. Now all is well. Thank you Alliant!!

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quizzer25 | Mar 8, 2017 | 4 posts since 2014

I opened account on Monday and Alliant bank link was done instantly. The opening deposit shows available but "not available for withdrawal". I understand from people here that its due to hold placed by Purepoint ACH origination.

Can I add Purepoint to Alliant as external bank now or wait until the hold is cleared in purepoint? I know Alliant will do test deposit and withdrawal and I don't want to get any fees from purepoint due to "insufficient funds" when alliant does the verification.

Does Alliant do a deposit first and then withdraw the test deposit?

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midas89 | Mar 10, 2017 | 1,019 posts since 2017

Quizzer, I put forth the Alliant linking my PurePoint account today before I read your post above, and now I'm worried. My PurePoint available balance shows zero, as you know, because they make people wait 3 business days before the initial deposit is available. I guess if PurePoint processes Alliant's withdrawal of the "trial deposit/withdrawal verification," I might be hit with a penalty. I'm not sure, of course, but had I read your post above first, I would have waited before trying to link my PurePoint account at Alliant.

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RickZ | Mar 10, 2017 | 218 posts since 2010

I opened a PurePoint account last week and already linked it from Alliant. There is no need to be concerned about a negative balance. First, the verification deposits are processed first as a deposit and then second as a withdrawal. Furthermore, the transactions are credited and debited from your positive current balance, not from your zero available balance.

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midas89 | Mar 10, 2017 | 1,019 posts since 2017

Thank you, RickZ. That makes me feel better. I will not worry about it anymore now. Thanks again!

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EasyRhino | Mar 30, 2017 | 1 posts since 2017

That's good news. And that was kind of a lot of complaining for what appears to have been a few days of technical delay.

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