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Alliant Credit Union - A Friendly Reminder

Kaight
  |     |   1,192 posts since 2011

I am writing this on the final Friday in January. One week hence February will be upon us. So Alliant members kindly be reminded:

February is Alliant Credit Union's kickout month. You get the dreaded "see ya" letter in February or early in March and are given until April to clear out completely. And "completely" means just that . . . period no exceptions. Got Alliant CDs? They will be closed and you will receive a check. All other accounts will also be erased.

Of course like victims in past years, if you're targeted for kickout in 2024 you will want to call in and seek to learn why. Save your strength. They never offer a reason, though online speculation is rampant. Just know that if you receive "the letter" you will, by April, be part of Alliant history. And nobody on the target list escapes, at least if anyone ever has I am unaware.

Finally, if you believe membership longevity will save you, fuggetaboutid. They mercilessly kick out long, intermediate, and short time members with equal glee. It's Alliant's way of saying "thanks for being a member, now get lost".

Good luck to all Alliant members. I hope you survive this year's cut.

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betaguy
  |     |   181 posts since 2022
what is this of which you speak?
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Kaight
  |     |   1,192 posts since 2011
Here is a copy of "the" letter as it went out back in 2019:

https://www.doctorofcredit.com/wp-content/uploads/2019/03/allian-closing-down-1024x768.jpg

These kickouts have been taking place yearly ever since.  But on a brighter note, if you do not receive a letter in February or early March, you're probably safe for the entire next year.
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me1004
  |     |   1,381 posts since 2010
Yes, this is now a long reported, serious issue. Haven't any of the people filed complaints with the regulatory agency? If so, what do they say? Don't the people kicked out have a contractual right under "once a member, always a member," and thus at least need to be provided a just cause to break that contract? We can't even find out why people are being kicked out so we don't do whatever that is.
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racecar
  |     |   628 posts since 2014
Thanks to Kaight, we've been reminded about it beforehand this year. I wonder, are there any DAers who live or work close to Alliant's office in Chicago that might be able to walk by to see the notice posted up about their annual meeting beforehand -- and actually attend? Wouldn't that throw them for a loop? If I recall, I remember reading that they try to keep their annual meeting secret if one inquires about when it is beforehand, but use a loophole tactic of getting around it by simply posting a tiny notice about it where no one would realistically ever see it, at their office. Are there any DAers who could go in person to inquire and/or have a look now and then over the next couple weeks? Sunlight is the best disinfectant.

As I've posted before, I honestly have liked Alliant (I do nothing wrong, and don't push any boundaries with them) but I do find unsettling the manner in which they go about this in secret. Another large CU (SchoolsFirst) recently sent a relative an insert with their new language on the process of expelling members, but unlike Alliant, they do it the right way, out in the open; it said they will inform the member beforehand and let them have a chance to defend themselves. Does Alliant not understand how this looks, and care about its reputation? If there is cause for expulsion then it should be able to stand up to sunlight. Alliant trying to cover everything up and do it in the shadows speaks volumes, and even though I've never faced this issue myself, hearing about the way they handle this has absolutely soured the way I view them, and makes me wonder what else they're doing deceitfully. Maybe they should take a moment to see how other large credit unions handle the issue and learn.
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me1004
  |     |   1,381 posts since 2010
Members should automatically get a notice about the meeting. I believe you are talking about the agenda -- you would have to ask into that to get it. I haven't checked, but people likely could attend the meeting online. But they almost certainly can cast a vote on that item via mail, possibly other methods even easier. All Alliant members have a right to participate in the meeting. Also, if even one person here went to the meting, they could act as proxy for all the others to cast their votes in person -- with proper paperwork, of course.
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CDmanFL
  |     |   286 posts since 2019
This is terrible! But thank goodness you get your money back. Imagine if they said they are keeping your money for no reason whatsoever. We haven’t eroded yet into a Banana Republic (at least not yet).
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CuriousDave
  |     |   233 posts since 2018
How does that affect members with IRA CDs - will ACU treat the returned funds as normal distributions? Or, will they allow direct (trustee-to-trustee) transfers to other IRA custodians?
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CDmanFL
  |     |   286 posts since 2019
And what prevents another credit union, or any credit union, that made a mistake offering CD rates that were too high from doing the same thing to get out of these obligations?
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RYP
  |     |   36 posts since 2022
I was kicked out after 13 years for what I believe was to many ACHs, but they never gave a reason. In hindsight, it was the best thing that ever happened. No more 3% savings account, and no more $25,000 ACH limit. They gave me two choices for the CDs I owned. Hold them to maturity and receive a snail mail check, or close them without an EWP. Of course I closed them. Had to close my 2% CC, but was able to easily replace it. I should have closed the accounts years before.
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racecar
  |     |   628 posts since 2014
RYP, you said: In hindsight, it was the best thing that ever happened. No more 3% savings account, and no more $25,000 ACH limit.

If I can  ask, where did you replace them with? (as far as the Savings Acct / ACHs)?
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111
  |     |   672 posts since 2019
People who are doing things that are even a smidge "gray area" - not fraud of course, but "gray" - might consider at least not putting all their eggs in one basket. Play a little defense.
- If your Alliant 2.5% cashback card is one of your high-usage cards, at least back it up with 2 or more of the easily-available, no-fee 2% cashback cards for the "just-in-case" scenario. There are several, and not hard to qualify for.
- If you have an FI, or maybe 2-3, that you prefer for making "hub"-type ACH transfers, if possible don't also make that FI your go-to for high-usage cards.
- Finally, again if possible, keep your CDs in FIs that are not ones you usually for ACH hubs or high-use credit cards. Alliant CD rates are OK but not great, so that should not be difficult.
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racecar
  |     |   628 posts since 2014
This might be too "in the weeds" but I wonder if anyone with an IRA CD has been kicked out. I remember reading that having a normal CD didn't matter, Alliant would just close it early without penalty as they show you the door. But an IRA CD is different because of the restrictions involoved. The IRS allows a person to only do one indirect transfer every 12 months. So, what if Alliant kicks "Fred" out but Fred has an IRA CD, and just did an indirect transfer elsewhere 3 months prior? I suppose Alliant would have to agree to move the funds via a direct transfer themselves if Fred informs them of this... for otherwise, if Alliant just released the IRA funds to Fred after a set number of days, they'd be forcing Fred into an illegal action. Again, I'm sure if informed Alliant would probably get around it by saying they'll do a direct transfer for Fred. But because of the paperwork and regulations involved, I wonder if having an IRA CD might make it less likely to be kicked out (or not)...
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Kaight
  |     |   1,192 posts since 2011
I never intended my OP to be, or to become, in any manner political. Doubters should consult the DATE on the OP, which is last FRIDAY. I did not foresee, and I could not possibly have foreseen, the content of Saturday's SNL show. Neither did I make, on Friday, the connection SNL made for me, albeit much to their embarrassment, thanks to (of all people) President Trump!

Apparently Trump, in one of his speeches, used the term "de-banked". SNL jumped on him and made fun of his "made up" terminology. But "de-banked" is a real word which has been around for a while, regardless SNL's ignorance. It is synonymous with "de-risked", which expresses the same thing from the financial institution's standpoint.

The SNL debacle has called to my attention another possible reason for Alliant Credit Union's despicable kickout practices. There is more documentation and much more explanation here:

https://www.msn.com/en-us/news/opinion/snl-mocked-for-their-woke-smugness-after-claiming-trump-made-...

Are former Alliant members/victims in the spot they're in because Alliant perceived them to represent too great a risk to the credit union?  A risk how or why?  Of course we'll likely never know.  
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samiam
  |     |   56 posts since 2018
My question is if I get "the letter" does Alliant report this as an adverse action to ChexSystems or any other credit agency? Will it show up on their report?
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RYP
  |     |   36 posts since 2022
samiam They didn't report anything when I was kicked out last year.
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John19
  |     |   397 posts since 2022
Who has money in Alliant anyway lol?
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anonlol
  |     |   178 posts since 2016
all the more reason not to bank cds with a Credit Union, rates go down your membership could be cancelled and you won't be getting your long term interest rate or able to replace it.
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Kaight
  |     |   1,192 posts since 2011
Atop all their other issues, at the moment as I write this the Alliant Credit Union website is kaput!
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Kaight
  |     |   1,192 posts since 2011
It's March. Watch your mail carefully!
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