Ally Invest Securities: Difference between revisions

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Ally Invest may try to require customers provide it with a security interest in their property that reaches beyond the relationship strictly between the customer and Ally Invest Securities:

<blockquote>Setoff and Security Interest Rights. I grant AIS a security interest in each of My accounts with AIS and its affiliates (each, an “Ally Company”) for obligations owing to any Ally Company.</blockquote>

A broad definition of "affiliates" could be an attempt of

An intentionally broad and/or vague definition of "affiliates" could be an attempt of Ally Invest Securities to use the customer's property to satisfy business dealings that are not directly between the customer and Ally Invest Securities.

Customers should be aware of the risk that Ally Invest Securities may have already invested in legal arguments on this matter that could result in the customer's substantial economic losses in the case that one of Ally's related interests (potentially a very close "affiliate") is able to create a successful claim against customer property where such a breadth of (successful) claimants may not have existed under similar circumstances with a different broker.

Customers should be aware of the risk that Ally Invest Securities may have already invested in legal arguments on this matter that could result in the customer's substantial economic losses in the case that one of Ally's related interests (potentially a very close "affiliate") is able to create a successful claim against customer property where such a breadth of (successful) claimants may not have existed under similar circumstances (such as with a different broker).

=== Interest Rates Charged ===

Ally Invest may be charging customers a higher rate of interest than the maximum allowed rate named in statutory laws in some jurisdictions in the United States. For example, the 2024 Maryland Code Commercial law sec. 12-102 states a maximum rate of interest of 6 percent per annum, but Ally Invest does not specify that it does not allow its interest rates to go above 6% for customers residing in Maryland. It is worth noting, however, that other companies providing brokerage services publicly advertise similarly high (less favorable) interest rates to customers.

Ally Invest may be charging customers a higher rate of interest than the maximum allowed rate named in statutory laws in some jurisdictions in the United States. For example, the 2024 Maryland Code Commercial law sec. 12-102 states a maximum rate of interest of 6 percent per annum, but Ally Invest does not specify that it does not allow its interest rates to go above 6% for customers residing in Maryland. It is worth noting, however, that other companies providing brokerage services publicly advertise similarly high (less favorable) interest rates to customers. As of 2025-01-19, the public-facing Ally Invest website cites a margin loan interest rate as of 2024-12-18 of between 7.50% and 12%.

@@ Line 30: / Line 30: @@
 Ally Invest may try to require customers provide it with a security interest in their property that reaches beyond the relationship strictly between the customer and Ally Invest Securities:
 <blockquote>Setoff and Security Interest Rights. I grant AIS a security interest in each of My accounts with AIS and its affiliates (each, an “Ally Company”) for obligations owing to any Ally Company.</blockquote>
-A broad definition of "affiliates" could be an attempt of
+An intentionally broad and/or vague definition of "affiliates" could be an attempt of Ally Invest Securities to use the customer's property to satisfy business dealings that are not directly between the customer and Ally Invest Securities.
-Customers should be aware of the risk that Ally Invest Securities may have already invested in legal arguments on this matter that could result in the customer's substantial economic losses in the case that one of Ally's related interests (potentially a very close "affiliate") is able to create a successful claim against customer property where such a breadth of (successful) claimants may not have existed under similar circumstances with a different broker.
+Customers should be aware of the risk that Ally Invest Securities may have already invested in legal arguments on this matter that could result in the customer's substantial economic losses in the case that one of Ally's related interests (potentially a very close "affiliate") is able to create a successful claim against customer property where such a breadth of (successful) claimants may not have existed under similar circumstances (such as with a different broker).
 === Interest Rates Charged ===
-Ally Invest may be charging customers a higher rate of interest than the maximum allowed rate named in statutory laws in some jurisdictions in the United States.  For example, the 2024 Maryland Code Commercial law sec. 12-102 states a maximum rate of interest of 6 percent per annum, but Ally Invest does not specify that it does not allow its interest rates to go above 6% for customers residing in Maryland.  It is worth noting, however, that other companies providing brokerage services publicly advertise similarly high (less favorable) interest rates to customers.
+Ally Invest may be charging customers a higher rate of interest than the maximum allowed rate named in statutory laws in some jurisdictions in the United States.  For example, the 2024 Maryland Code Commercial law sec. 12-102 states a maximum rate of interest of 6 percent per annum, but Ally Invest does not specify that it does not allow its interest rates to go above 6% for customers residing in Maryland.  It is worth noting, however, that other companies providing brokerage services publicly advertise similarly high (less favorable) interest rates to customers.  As of 2025-01-19, the public-facing Ally Invest website cites a margin loan interest rate as of 2024-12-18 of between 7.50% and 12%.