Fidelity Investments

I finally walked into one of their branches and handed over my documents. When I called the day after to unlock my account, they told me that things are moving in the right direction (not before giving a few minutes of summary where things were left off) and I should have my account is opened soon. An hour later, I received a call and they needed another document (they could have told me all in once). I faxed it. I called them the day after (an hour behind the line) and they told me that all the documents are somehow not readable and I need to send them again. Which is insane considering the previous agent confirmed they are okay. So, this is one of most insane and stupid experience I had with any bank accounts I had open with other brokers, Forex, etc. Stay away from them.

This year, they REFUSED to issue the mandatory required minimum distribution on her IRA (required by the IRS), because in their apparent infinite wisdom, yet lack of understanding of Georgia probate law (!), they didn’t think a court order was sufficient for them. So, I was forced to go back to a probate attorney and explain the situation (which both the attorney and the probate court said that it was VERY clear that Fidelity had not bothered to understand Georgia probate law in making their decision). I had to spend another $1000 of my mother’s funds to get a court order that specifically ordered Fidelity to honor the financial conservatorship I already had.

Needless to say, this situation only added further distress to an already difficult time, given my concern for my mother’s situation. Fidelity demonstrated ZERO concern or caring throughout the entire 5 month battle to get them to honor what they should have honored to begin with. Throughout this time, I spoke to one representative after another - because they REFUSE to let you speak directly with anyone on their legal team. A simple phone call from that team to the probate court for any clarification they needed on Georgia law would have been the right thing to do. Instead, they make their customer’s lives miserable in an already distressful situation. RUN, don’t walk away from this despicable company. I’ve since found they have a retention department that will go to great lengths to tangle YOUR money up when you try to leave.

3 days after this, I received an email saying that my mutual fund was sold (I didn’t order this action) and now my balance is -$1.94 (negative, I owe money). I called today, spent almost an hour on the phone, and learned that for regulatory reasons they sold the mutual fund at a loss and I have to pay the $1.94 if I want to continue being a Fidelity customer. They also said that they never received the fax and I should send it again. I told them “Never mind, I want to close my account, this is ridiculous”. They asked me to go to a Fidelity office to bring a check for $1.94, or probably I would be referred to collections.

This freeze lasted for 4 months and despite numerous phone calls they refused to explain why they took this action and the legal basis allowing them to do it. The first rep I spoke to said there was concern about my "diminished capacity", but another one said that was an incorrect explanation. Essentially I was told they would complete their investigation and I would be notified of their findings.

I contacted the SEC and the Attorney General and neither of these agencies provided any assistance. This experience was life changing for me because I went from a trusting, self confident woman to a fearful recluse who was afraid to go out of the house. I never thought this could happen in America. Although the Fidelity staff knew very well that there was no problems with my mental competence, they filed a report with Suffolk County Adult Protective Services. I was visited by a case worker to whom I provided copious documentation refuting their allegations. (This was particularly humiliating because I retired from Suffolk DSS as a bureau director and many of the staff there knew me). Of course the report was unfounded, but I learned that this was not the first time Fidelity made a bogus report to APS and froze accounts of other older people without valid justification. (I have a copy of the complete APS file if anyone cares to review it.)

Despite the fact that APS told Fidelity there was no concern about financial exploitation or lack of mental capacity, they still refused to lift the freeze on my account or provide me with any information regarding the status of the investigation. Finally, in desperation, I contacted a prominent attorney to resolve the matter for me. Ironically, since my money was frozen, I didn't have the money for a retainer to secure his services. He suggested that I make one final attempt to demand Fidelity release my money, so I wrote a letter to Fidelity Corporate offices. I was able to have a friend lend me the money for his retainer and was ready to take legal action against Fidelity.

The day before I was to meet with the attorney to finalize the arrangements, I received a call from a representative from Fidelity informing me that they were no longer able to service my account and I should transfer my accounts to another brokerage house! I told him I had been trying to transfer them to Charles Schwab for four months but Fidelity wouldn't honor my transfer request.

The saga had a happy ending because I have an amazing rep from Schwab who was able to help me get over this unpleasant experience and attain my trust. I truly hope that this description of my interaction with Fidelity will be helpful to others who have been harmed by their caprice. I plan to write a letter to Senator Elizabeth Warren about this experience, not because she will be able to do anything, but to make her aware of how Fidelity conducts business. It took me a long time to make this complaint because I am just getting over the trauma of having a corporation seize my life savings with no apparent intention of returning them to me.

One heir got his in January 2018, another in April 2018, a third in August 2018, and one still has not gotten his. We are looking at $20,000 in IRS penalties for failing to take the RMD's on time. Every time I call I get a different representative, so I have talked to a dozen different people now. I have to start at the beginning and go over entire story of epic Fidelity failures every time to get assistance. Every time I talk to them they need "one more piece of information" to get the problem solved. This last time I took the pre-filled form they sent me that they had to have signed before issuing the RMD check, and I delivered it in person to one of their branches that was over an hour drive away. Their employee reviewed it, said it was complete and that "should do it".

Ten days later a packet arrives, which I stupidly think is going to be the check, and it's a request for more information with no details as to what they need, but they did include a return envelope for my convenience. Spent 20 minutes on hold for a rep today, another 10 minutes waiting for him to look up and review the file, only to be told they could not assist me without me having my severely autistic nephew (the fourth heir) come to the phone so they could talk to him. Be aware that the packet I sent them two weeks ago had a form in it that he signed giving me (his aunt), and his mother authorization to handle his account on his behalf.

Fidelity still wouldn't discuss the issue with me today without me driving 25 minutes to go get him and put him on the phone. I AM DONE. I am calling T. Rowe Price and moving all four of our IRA's to them. I am sick of dealing with Fidelity, and while I can't tell you what to do dear reader, learn from my family's mistake. I had to go to my bank to get a loan because I couldn't get our money, which the IRS requires us to take out of the IRA, for nine months. This is without a doubt the worst financial mistake my family has ever made, trusting Fidelity with our assets.

Later, they told me the teller was mistaken they never needed or reviewed my sent documents that I spent so much time gathering, mailing, and waiting for. I have brokerage accounts with two other companies and I have never had a problem with them. They have lost me as a customer for life and I'm not going to reapply ever again. I would advise anyone thinking about opening an account with them not to do it. They might close your account without any reason at any time, and then good luck recovering your funds from them. There are much better, more respectful brokerage companies who deserve your hard earned money.

Fast forward some 18 years later, believe it or not, I still have upwards of $16,000 in my account after giving numerous times to multiple charities albeit in smaller amounts, anywhere from $100.00 to $1,000.00. My father had given a lot of his charitable donations directly out of his pocket as he was much older and he quite frankly forgot he had a charitable account for some time. His current balance as of June 30th, 2018 is $55,619.71. Obviously credit is due to Fidelity for their performance on our accounts allowing us to use the initial investment into the accounts for as long as we have. But, that is as much credit as I can give them!

My father passed away in May, 2018 and I became executor of his estate. After grieving and getting his home and estate in order I started going through the books and hitting a very large to-do list in making sure I finalized everything in his behalf. I obviously had privy to all his records (which he kept great care of) and I slowly went through all of them seeing where all the skeletons were buried so to speak and eventually I came across the Fidelity statement showing me his current balance.

Knowing I had an account with Fidelity as well, I thought I would call them and tell them of his passing and see if I could have his balance transferred to my account and continue charitable giving in his legacy. I got a customer service agent on the phone and explained of his passing and what my goals would be with his account. The agent asked If I would write a short letter explaining what I was trying to do and then would I please send in a Testamentary doc as well as a death certificate to which I did without any issues.

30 to 45 days go by and I have not heard anything back from Fidelity so I placed another call into them to check the status of his account. I was immediately informed that they appreciated me sending in the forms, but that the account had been shut down and the money dispersed to the charities of their choice! Of course, you can imagine that I was stunned! I asked why they did this and I was informed that my father had not listed me as a successor on his account so I had no rights to the account at all as it was a donor managed account.

My response was… "So after being a loyal and consistent customer for 18 years plus, you went ahead and sent his money out and closed the account without so much as a call to me and furthermore you did not consult with me at all to see if possibly he had a favorite charity or charities that you would like us to earmark and send the balance out to in his name and legacy!"

I completely understand that I was not listed as successor to his account, but let me ask this, would it not be best practices to say to management at Fidelity, "Hey, this person’s father died and even though the money is not technically his, let’s consult with the son as we know he is an account holder too and give him a chance to designate charities that he knows his father would want us to use."

Or, how about, "Sir, you were not named as successor to your father’s account, however, we will give you a (period of time) to allow you to designate charities that you know your father would want to support and in that period of time we will allow you to submit amounts to be donated and then we will close out the account. If you do not identify charities in this (period of time) we will be forced to donate to our specific accounts and close the account down." Fair?! Bad business practice Fidelity, shame on you!

Fast forward some 18 years later, believe it or not, I still have upwards of $16,000 in my account after giving numerous times to multiple charities albeit in smaller amounts, anywhere from $100.00 to $1,000.00. My father had given a lot of his charitable donations directly out of his pocket as he was much older and he quite frankly forgot he had a charitable account for some time. His current balance as of June 30th, 2018 is $55,619.71. Obviously credit is due to Fidelity for their performance on our accounts allowing us to use the initial investment into the accounts for as long as we have. But, that is as much credit as I can give them!

My father passed away in May, 2018 and I became executor of his estate. After grieving and getting his home and estate in order I started going through the books and hitting a very large to-do list in making sure I finalized everything in his behalf. I obviously had privy to all his records (which he kept great care of) and I slowly went through all of them seeing where all the skeletons were buried so to speak and eventually I came across the Fidelity statement showing me his current balance. Knowing I had an account with Fidelity as well, I thought I would call them and tell them of his passing and see if I could have his balance transferred to my account and continue charitable giving in his legacy.

I got a customer service agent on the phone and explained of his passing and what my goals would be with his account. The agent asked If I would write a short letter explaining what I was trying to do and then would I please send in a Testamentary doc as well as a death certificate to which I did without any issues. 30 to 45 days go by and I have not heard anything back from Fidelity so I placed another call into them to check the status of his account. I was immediately informed that they appreciated me sending in the forms, but that the account had been shut down and the money dispersed to the charities of their choice!!

Of course, you can imagine that I was stunned! I asked why they did this and I was informed that my father had not listed me as a successor on his account so I had no rights to the account at all as it was a donor managed account. My response was… So after being a loyal and consistent customer for 18 years plus, you went ahead and sent his money out and closed the account without so much as a call to me and furthermore you did not consult with me at all to see if possibly he had a favorite charity or charities that you would like us to earmark and send the balance out to in his name and legacy!

I completely understand that I was not listed as successor to his account, but let me ask this, would it not be best practices to say to management at Fidelity, hey, this person’s father died and even though the money is not technically his, let’s consult with the son as we know he is an account holder too and give him a chance to designate charities that he knows his father would want us to use. Or, how about, sir, you were not named as successor to your father’s account, however, we will give you a (period of time) to allow you to designate charities that you know your father would want to support and in that period of time we will allow you to submit amounts to be donated and then we will close out the account. If you do not identify charities in this (period of time) we will be forced to donate to our specific accounts a close the account down. Fair?! Bad business practice Fidelity, shame on you!

So all things being well, and fingers crossed I should receive MY money in 2-3 business days. Just to add to my general experience with this Fidelity. The website design, UI and UX is beyond dreadful. The worst I have seen. My local community bank has a better designed more functional interface. The investments they offer are also pathetic. During the recent stock boom, some 25% YTD with a standard Index linked ETF, and they show returns of less than 3%??? And I went with their most aggressive tech heavy funds. I now do my own investing through Schwab who are trustworthy and excellent to work with. I will never invest with or through a Fidelity brokerage firm ever again.

I also said, "I am Hispanic and have a fairly common name." They then asked me questions about a place I have never lived and when I told them I haven't lived there they said, “Since you can’t answer the question you can’t prove who you are.” They then said, “We are blocking your online account and you’re not getting your money.” You ** are all the same and hung up the phone. I have two doctoral degrees and was born in this country. Their motive is clear, to steal your retirement.

Recently I became disabled and couldn't work any longer. I am 67 and wanted to start my Northrop pension payments. I called Fidelity and spoke to their employee about the amounts I would receive and I agreed to her figures. She sent my wife and I the forms and my wife had to get part of it notarized to be my beneficiary. They sent a form back a few weeks later saying the forms we sent were filled out wrong. At the time my wife was out of town for her mothers funeral for a week. As soon as she returned we called them. At first they claimed they lost our forms and then when they found them they said they were filled out wrong. We inquired how could the forms be wrong, all we did was sign them and have one notarized. She said we should have called and mentioned the mistakes in the amounts. I asked how would I know if there were mistakes, we weren't the ones that filled them out.

So after all these weeks of waiting for my pension, we now have to wait all over again for the forms being sent by snail mail instead of Fax or Electronic form, hand sign them instead of DocuSign and notarize once again (why would we have to notarize again for my wife to be the beneficiary?), wait for them to process again for weeks, and then finally start payments. I will never do business with them again. They have shown me they are unreliable and ready to blame everyone else.

I tried The E*TRADE platform and with help of an E*TRADE specialist our accounts were set up, linked and running within a about 8 days. On May 7, 2018, I tried to make a trade in one of my wife’s accounts and found they were locked. After complying with their overwhelming POA requirements I was still locked out of my wife’s accounts until July 3, 2018. In all that time after almost daily phone calls I could not get answers for reasons for holding those accounts hostage. My last call to E*TRADE was June 15th and did get a response, which was “transfer my wife’s accounts to another broker”.

On July 3rd I received an overnight letter from E*TRADE stating my POA did not qualify me to open accounts for my wife by their rules. It took two months and a loss of thousands of dollars to learn about this ridiculous requirement. What alternative does an incapacitated person have? They have my wife’s doctor’s statement describing her inability to function.

On June 18th I requested Fidelity Investments to have our joint account transferred to Fidelity’s Active Trader Pro and applied for POA for my wife before transferring her accounts. Fidelity service was almost as bad as Etrade’s service. Their representatives provided a lot of misinformation. I was told forms I needed had to be mailed to me and mailed back to Fidelity. I had to request for forms repeatedly including POA, transfer of assets and option trading request.

This process took so long I finally went online and found all necessary forms could be downloaded. On July 3 and 4 I received every form Fidelity has for any need in regular mail delivery about 2 weeks after I requested those needed for our accounts. Our joint account had about a dozen options which I could sell with difficulty, but I could not buy options. After a couple of days I got an excuse – “I did not fill out employment information”. My wife and I are 90 years old. I told the Fidelity agent the retired box was checked for myself and the “not employed” box for my wife. Surprised, he said my option would be ready in a few hours. Not so. A few days later, excuse number 2 – I did not check the right classification on the option request form.

He would not change the confusing classification choices for me and had to resubmit the form and mail it back to them. Today I tried to sell some options. I had to call Fidelity to sell them and was on hold for 30 minutes before I got an agent who said he had to get an option specialist to take my order. Another 10 minutes and my trades lost about $40 during my wait. It took 45 minutes make the trades which I could have done online in 5 minutes without a $40 loss. As of today, 7/9/18, I am locked out of one of my wife’s accounts and cannot buy options. We are losing portfolio value due to delays caused by unreasonable rules and poor service.

There are thousands of stories similar to mine on the internet. Entering “Etrade Complaints” in your browser you can find hundreds, enter “Fidelity Complaints” you will find over a thousand, or enter any other company you would like to check out. I strongly suggest anyone who needs to manage financial affairs for a loved one avoid Etrade and Fidelity. Maybe others should too. In addition to very bad service their Etrade PRO website is poorly designed and hard to navigate. Until recently their P/E ratios were incorrect for a large percentage of listed stocks using quarterly earnings instead of yearly earnings. Fidelity has this same problem today.

They both have a confusing company earnings list which does not identify the fiscal quarter for the amount shown. This industry needs regulation. Anyone experiencing loss of account values or bad service from any broker should report their complaint it to the Security and Exchange Commission (SEC) and/or other services that can be found on the internet. I do not want my children facing this nightmare when I lose my faculties or if I should pass on before my wife.

When I realized the distribution did not take place, I had to make about 20 phone calls to finally understand that the issue was that the legal department didn't think the court order that specifically states that I am 100% authorized to act on my mother's behalf as her financial conservator was good enough. I had to spend 4 months of additional time, and expense from my mother's estate to get an additional court order specifically to satisfy Fidelity. Now that I'm finally through that hurdle and anguish, I am taking the new court order to the Fidelity office in person today to get that filed. Once they do the minimum required distribution for 2017 IRS rules, I'll be moving her account to a financial firm that actually instills trust and caring with their customers.