Consumer Complaints and Reviews
I discovered fraud on my Charles Schwab account. After many delays, and much lack of professionalism, after 6 months they decided not to pay the claim because it was just outside of a 30 day period for filing that I did not know about.
I applied for a Charles Schwab website ID and a brokerage account on Sunday the 21st of May 2017. That was nine days ago as I now type. Within a few minutes I received this email: "Your Schwab One Brokerage account is now open. Your account number is **. Your options application will be reviewed within the next two business days. Your Schwab Bank High Yield Investor Checking account is pending and will be generated within 24 hours."
On Tuesday, May 23rd I received this email: "Welcome, Jeffrey. Thank you for choosing Schwab. You're off to a great start! From the beginning, you will see it's different here and that our relationship with you is defined by helping you fulfill your financial goals. As you get started, we will be reaching out early and often to make certain we are providing the help you need on your terms. Now for your first step funding your account. Here are three easy ways:"
At this point, I'm happy and excited and looking forward to making some great deals, right! Heck yes! I added my Wells Fargo account and set up an ACH debit for $20,000.00. The funds flew out promptly on Wednesday the 24th of May 2017. Gone! On Thursday the 25th of May 2017 I called and inquired about the checking account that I requested and was told that there was an issue and to contact "chex system". I did and I'm waiting to get their report. No biggie. I'm sure I'll sort it out, right.
On Friday the 26th of May 2017 I was to be able to trade my new account but it was frozen! So I call Schwab again. Now my brokerage account is being cancelled and they have sent me via US postal service a letter detailing this bit of news. I ask them to return my funds the same way via ACH and they requested it for me and it showed up in my mystery account that the funds were to be sent via ACH to my Wells Fargo account on Tuesday the 30th of May 2017, as Monday was Memorial Day. So I notice the ACH for the 30th was cancelled and that there was a pending transfer back to me now set for tomorrow the 31st of May 2017. Then I checked the account again and notice it too has now been cancelled. So I call Schwab, again.
Long story short, I requested my funds early morning around 0800 today via wire transfer, "sure" they say. "Just fax us this release with your info." I did, I had that fax sent in no time. Here is what they sent me back today: "Dear Client, Your request to wire funds from your Schwab account has been initiated. In some instances we may need to verify your wire instructions verbally before completing the request. Wire amount: $20000, From account ending in: **, Wire recipient: JEFFREY, Receiving Bank: WELLS FARGO BANK, NA, To account ending in: **, Case ID: **."
And the account is noted as "pending" transfer via wire to my Well Fargo account. Around 4:30 pm I still have no funds returned so I call Schwab again. Oh, it will now be on June the first! Then they call back to tell me it will now be on the 8th of June 2017 as they will hold new brokerage account funds for TEN days as per their desires and procedures etc!!! But I don't have a brokerage account at least not one that works as agreed. I hope those pigs enjoy using my funds. How pathetic. I remember those commercials from 40 years ago and how this company seemed so sincere.
To add to this I get a bit of mail in today welcoming me and you should see this fine brochure. In the second paragraph down it states. "We also believe every investor deserves to work with a firm that stands by their word." Which word will you stand by, Schwab and company and when will you really send back to me my $20,000.00? What a zoo and I feel bad for those really nice folks that work there too. Except for the last one that called, she sounded like she was one hard individual. OK now I feel bad for her too. Bummed out, disappointed, let down, not sleeping over this money issue and lack of commitment from a company that I thought was of good integrity. I see that I'm not alone here at all. Are WE the customers? This smells! What is next? I'll let you all know.
First of all in the 90's I was administrator of a small banks employee 401(k) account and it was held with Schwab. They were wonderful and extremely easy to deal with. Then I inherited a small IRA from my ex. I was the beneficiary but his mother disputed it saying he told her she was named on it. This was the only evidence she had. Schwab would not release the money even though it was their signed beneficiary form which said it could not be changed unless in writing. So I was forced to hire an attorney and 10 months and $20,000 in attorney fees the judge upheld the beneficiary document. On Monday, May 22, 2017 my attorney drafted a letter with all of the information and the order from the judge and faxed it to the number we were given.
Mind you when I was notified of this account Schwab sent me all of the forms for an inherited IRA account and I returned them immediately. I called 2 days later and was told they hadn't received it. So again I had my attorney fax them over and I emailed a scanned copy through their message center. Now we are 5 days later and they do have the documents but the legal department has to review them and it will take a few more days. In the past 10 months I've called to get the account balances and have been given them. Today after I'm told they have the documents stating the account is mine they no longer will give me the balance. I will never put a dime in an account with Charles Schwab again.
I have been with Schwab for many years and have been happy with them up until the last few months due to continued website outages. But yesterday really fried me. I had 250 shares of MOMO (earnings due out next morning) and I had put in a trailing stop a few days earlier as this was a new feature for retirement accounts. I noticed the stop was for only 100 shares so I clicked on "Cancel" order button, to so I could cover all my 250 shares, as that is the ONLY option available. A message popped up stating something to the effect of "transaction could not be completed at this time, try back later." So I tried it again and got the same message. I waited a few minutes and tried again, same error message. My surprise came when I went back to my Account --- Positions page and it shows -50 shares of MOMO and a "Securities Due" message & a phone number to call at the top of the page.
I called the number at 6:45 am and spoke with Lee. After holding for 5+ minutes he comes back and says they checked my account transactions and after trying to cancel stop, I put in 3 market sell orders of 100 each. First off, why would I do something as stupid as that. Second I told him that was an impossibility as there was only one option available "Cancel." Third, I couldn't make 3 separate orders within the same minute as their fake records show. After going around and around he says he put in a "transaction dispute" and it will be a few days but that I would have to buy 50 more shares at Market to cover my -50 shares margin. So I went ahead and paid a premium for the 50 shares. And this morning, I noticed I have "Zero" shares of MOMO again??? What happened to the 50 shares I was forced to pay for yesterday??? No record this time of any fake trades being done either. I've totally lost all confidence in this company to handle my account.
My cousin and I both have had Schwab brokerage accounts for 15 years. Recently I needed to access a 1099 online. At that time, I saw an account for my cousin listed with mine by her name. I called to question financial advisor. Was told they would contact Schwab and have removed. Later found the account listed because 14 years ago, she asked me to be POA over her accounts while out of Country, which we both had forgotten about. A few days later when I checked my account online, I was down significant amount of $. Schwab had been including her asset for 1 account with my total assets. When contacted told because I was POA. Did not include assets though, from other account was POA for. They will not give me explanation for this error. Put total responsibility on me not checking my accounts more carefully. I checked online at least 2x week or more. The assets appeared in my total assets from day 1.
Since the accounts only identified by number and not name, and everything done paperless, it was impossible to know account was not mine until needed to go online to print out a 1099. They are a sham. They are arrogant and basically said "too bad" in not such a nice way. Looking for people this happened too to file class action.
How do I know I can trust these reviews about Charles Schwab?
- 794,387 reviews on ConsumerAffairs are verified.
- We require contact information to ensure our reviewers are real.
- We use intelligent software that helps us maintain the integrity of reviews.
- Our moderators read all reviews to verify quality and helpfulness.
For more information about reviews on ConsumerAffairs.com please visit our FAQ.
I opened a checking account with Charles Schwab and after depositing some money and making some stock purchases it got restricted. I called to find out what was the reason for my account to get restricted and I was told that it was because of some information from my Equifax report. I was told to call Equifax and find out about details. After calling the credit agency I was told that everything was good with my status and they didn't know why my account would get restricted. I called Charles Schwab again and was told that my account was closed and that it was a business decision. I asked about details but was told that they are not allowed to discuss it with me and that the decision was final. I have no problem moving my assets elsewhere, just thought I would let everyone know to avoid this company. They also did a hard pull on my credit report which cost me 4 credit points. Thank you for your business Charles Schwab!
I had 401k through Charles Schwab, I left my job in February, at beginning of April I contacted them letting them know I wanted to withdraw my 401k funds. They will not process my request because they claimed my account is still active, however my corporate HR has verified and sent them multiple emails and contacted them letting them know I have not contributed to the 401k or been with the company since February. It's May 11th and every day it's a different excuse. This company are crooks and extremely rude. If you have 401k with this company beware they are dishonest and do not wanna pay people their funds.
I bounced around between big banks and credit unions, and I've always been nicked and dimed for this or that fee, or for not having enough cash in the account while trying to make it through college. I signed up with Schwab and it's been a great 8 years with them. They have always been quick to pick up the phone or chat with me when I need something. Great investment options and good banking perks. I remember one early morning on the way to work I was starting to trade stocks for my retirement account and I accidentally sold five thousand worth of a stock for about $500. I get a call in less than a minute from Schwab asking me if I really meant to sell my stocks for almost nothing, and boy did my heart just drop. They canceled the trade right there and then. I don't have a lot of money -- what other big bank would do that for an average joe? Bottom is that I consistently recommend this, or Fidelity bank, to anyone.
When asked to have an account with Schwab to try to roll over IRA funds into less accounts with my husband, I was told that my account had been closed and that I was being denied the ability to open another account with Schwab. When called to find out reason of denial of services, I have been repeatedly told 4 times that it's a "Corporate business decision", which they are unable to share with me unless there is a court order to share such decision. I have never been denied any such services and after reviewing Charles Schwab services through Consumer Affairs, I'm speechless that this would happen, but also grateful that our entire family will no longer be participating in any services through Charles Schwab, especially if this is how they treat their account holders. Be careful who you place your monies with, especially IRAs.
In early March 2017 I opened an account with Schwab online, the process was fast and easy. Verified my bank account within 24 hours and was all set to go. I purchased $10,000 of stock and opened an IRA a week later to transfer more funds. While waiting for the check to arrive from my other bank, I get a UPS next day air letter stating that "you agreed to abide by the terms of the applicable Schwab account agreement. That permits either you or Schwab to close the account at any time and for any reason. Schwab is now exercising its right to close your account effective xx/xx/17."
Once the new funds I was planning to deposit were delivered, I walked in to a local branch with a check in hand ready to deposit and they refused. I explained I was planning on adding more funds within 60 days when they came available. Still would not help me or take the money. At their recommendation I called the account advocacy team asking for more information and was simply told it was a "business decision" and they couldn't provide more information. They stated it had nothing to do with the amount of money in my account and couldn't be changed by depositing any amount of money.
My credit score is 799, I own a home free and clear, have NO debt, and have liquid cash plus money in accounts that report to credit bureaus. I felt the business decision was poorly made (probably by a computer) and requested to speak with a supervisor to get more information regarding the specific reason or find out if I could appeal the decision. I was refused access to a supervisor and provided no information and was told that there is nothing I can do to revive my accounts or reverse the process, nor would I be allowed to open a new account.
My experience has been completely opposite to what the materials I received in the mail (2 weeks after receiving an account termination notice) say. "Our Promise. Transparency. We'll be open and honest in all aspects of our relationship..." Schwab was not transparent, open, or honest about the decision leading to my account termination. "We'll work with you based on your needs, preferences, and goals. You're in charge, but you're never alone." No one was willing to speak with me to understand my needs and preferences and perform any sort of detailed review of my account to address the issue. I was simply read what was on the screen and told to take my money elsewhere.
Overall, a completely unsatisfactory experience. I would not be writing this review if someone could have given me a specific reason for the account termination or made even the slightest effort to re-evaluate the decision. I feel the decision was flawed; it does not know the future and what actions I may or may not have been days away from making with my money at Schwab.
I had a brokerage account with Schwab, tied to a checking account. Inexplicably they closed the checking account without notice. This was not due to criminal activity or court order. They just did it and called it a business decision. Then when I complained about closing the checking account they closed the brokerage account without notice. They said it was a business choice and I should go elsewhere. I feel they are quite foolish as the brokerage account had a margin loan that generated 15,000 a year of profit for them. I moved my account, and then had my clients move their account as well. This cost Schwab 80,000 a year of margin interest. I doubt they will care, but any company that treats customers like this and does not care about losing money, even only 80,000 a year, is one that we should all be leery about doing business with.
I am a small business owner. I recently opened an account with Charles Schwab. I made my first trade and everything seemed to go smoothly. Two days later I get an overnight delivery letter telling me they have the option to close accounts and that they were closing mine. They gave me 30 days to transfer my securities and cash out of their company. Needless to say, I was surprised by the letter. I have called their customer service department but nobody will give me a reason for their decision. It is very frustrating to be basically blackballed by a company I chose to do business with. It is not that big of deal as I have accounts at other firms but the lack of an explanation is bothersome.
Like many other reviewers here, I opened an account online. I had recently lost my father who had left me a sizable inheritance which currently is in the survivorship period. The total works out to the middle six figures, but on account of the survivorship period, it's several much smaller (but not insignificant) insurance payouts that I will be receiving first. One of these companies does not offer the option of receiving a mailed check, so I made the mistake of telling them to deposit the funds to my CS account. Seeing as I was given account and routing numbers, and even now I can still log on to my CS account, I foresaw no difficulty in having the insurance money deposited into it. I had also let CS know that I would soon be receiving a much greater amount of money and, not having handled any such amount before, that I looked forward to working with them to use and invest the money in the most prudent way possible.
Surprise! Due to poor credit, my account is restricted; when I first found out about this I told them about the incoming deposit and was told I still might be able to receive the deposit, to be immediately transferred out or liquidated into check that would be mailed to me. Surprise again! Now it seems they won't be able to do that after all. Instead, they will bounce my deposit back to the insurance company. Since that takes at least a week, I have to wait at least that long before I can resubmit my claim. Then it will be another couple of weeks before I can get my money. You would think CS would at least be understanding enough to process a deposit before they kick you to the curb, but they couldn't care less. Not for people with less than stellar credit.
So far, best customer service I've had. Got a bank account before I left the States. When my card got blocked in Indonesia, I was able to call via Skype and it got solved immediately. When I lost my card in Australia, and they sent me a new card free of charge even though it's international. When I had to activate it, there's only a toll number which charges per minute so they reimburse me once I sent a copy of the phone bill. Each time I've called, the service has been pleasant. Easily recommend for anyone that's travelling.
Please Beware. Charles Schwab & Co. will do a hard inquiry on your credit report when opening up a checking account with them! I was really upset to find out through a fraud alert on my phone. I called with my concern, only to be transferred several times, and treated very rudely by an overly arrogant man! He claimed that he had no knowledge of the impacts a hard inquiry does on a credit report. No apologies for my concern, only a bias and arrogant response! There are too many other great investment firms for anyone to tolerate self entitled arrogance.
I opened an account with them online and it went through successfully. I tried to do a mobile deposit and the system said it had to review my info before they allow me to use the mobile deposit feature. I set up my paycheck to have part of it sent to the new account. I then receive a few letters a week or so later (after not being able to login any longer on the mobile site) and it informed me that I was not approved for mobile deposits. Then another letter about my credit wasn't sufficient to open an account with them. That is a load of bull. I don't know when banks starting doing a thorough review of your credit history in order to open a deposit account. I have no bad account or past due with other banks, so I wasn't sure why they denied me.
Then the next letter I opened read that they have closed the account due to the same reason I stated above. If they are going do allow consumers to open accounts online, they should maybe do the application part first before issuing/opening a new account. I had some trouble, but I was able to get HR to remove them from my direct deposit, as my paycheck is this Friday. This wasted my time, money and efforts. All to put my money in a bank. Wasn't asking for credit.
I placed an order for 10 contracts of MJN options before market opened. The closing price for the prior day was $.15 and opening price was $.10. Schwab priced the options at $4.50, which caused an immediate lose of $4,500. They blamed it on the market maker, but would not disclose the name of the market maker. This is a fraudulent way to steal your money.
I have been doing business with Charles Schwab & Co. for decades with limited problems. However, in the past couple of years, as the firm has been flooded with lawyers, nearly every account opening or other paperwork I have attempted has been delayed or hindered by paperwork impediments. The latest is their refusal to reimburse me from my son's custodial account for educational expenses I incurred on his behalf. I want to do business only with those firms who know and trust me.
I called to inquire about trade pricing. I was routed to an individual whose tone was quite arrogant and condescending. Such a surprise as I have not had this problem in the past. When I began to say thanks for the information he quickly said Bye and hung up. Left me feeling angry. Not something I hope I ever do to one of my customers in my business!
We had my brokerage account stolen ten thousands dollars in fraudulent internal bank transfer from Bank of America to Charles Schwab & co. I am ill and blind as well old and sick. Please give my money surveying funds back now as soon as possible. Thank you so much. They duplicated the payment from Bank of America to Charles Schwab without having the funds and then they debit the account back to Bank of America but kept ten thousands for sharing old, sick and disabled female surviving funds for their own use. Please help us to regain those monies back as soon as possible.
I roll over part of my monthly pension each month. For the last 2 months they have lost 2 checks of $3700 each and have no idea what they done with them. I am now in the process of suing Schwab to get my money back. Do not use this company at all for your investments. They will steal your money at some point.
They are unbelievably terrible! I've been trading for over a month and I try to get a high yield checking account and they all of a sudden cut me off from trading! They claim something in my "Chex system" report came back negative! I recently got a copy because I like to review my reports and nothing negative was on there! I will NEVER do business with these guys and I will tell everyone I can about my experience. They are complete disaster!!! And I already do business with all of their competitors and no issues. They are a horrible company to pull a stunt like this after a month!
I am about to receive an inheritance for securities that are worth a considerable amount of money. I needed a receiving account and heard good things about Schwab, so I opened an account and was impressed with the level of customer service I received in the process. That night I spent $20.00 on a FedEx overnight delivery of my account information to the trustee so they could make the disbursements. A few days later I tried to log into my account with no success. I called and they told me that it was closed because of my bad credit. Had they emailed me I would have saved 20 bucks. Instead, they sent me a letter. After I pay off my debt and restore my credit I will never go back to them and make sure to spread the word, too. It's a shame they lost a wealthy customer.
I recently moved to a new city and noticed that I was not able to pay for an online item with my credit card. Because I often travel, issues like this are very common-- however, this time when I called Charles Schwab to help me solve the problem I was told that there were discrepancies (and were not allowed to tell me what these were) and therefore they could not verify my identity and couldn't help me further.
The representative suggested I go into my local branch to show a photo ID-- can't, am out of the country. Then suggested a phone number that only works on the weekdays-- problem is that I am now without a credit card for the next two days. While I appreciate that Charles Schwab is making an effort to prevent fraud, it is extremely frustrating that I cannot use my credit card during this time-- especially because these first few days of moving to a city are when I need it most. On the whole I have had very good experiences with Charles Schwab, however, an experience like this makes me very nervous to depend on Charles Schwab.
Schwab is known for paying dividends late. It has gotten so bad recently that actually tried to steal several dividends in different accounts and time. I also had an accounting issue, even though It was a small amount that Schwab tried to cheat. I had to threaten Schwab to get it corrected. Finally, today 9/12/2016, Schwab suspended one of my fund in Roth Account, stating that this fund is in the process of changing name, but there was neither article nor news about it. Most of all, it was still trading under the same ticker symbol. At the market closing, change in fund price has not been reflected in my account. They told me that it will be corrected tomorrow. When I caught Schwab red handed, they came up with another deceitful practice right away. I was busy making copies of every detail that Schwab couldn't get away with tricks so far, but suspending my fund is not something that I can forget.
It is time for us to look for another brokerage. Have a control of your money as much as you can, don't leave it to Schwab and make copies of everything, even have to record a phone conversation too. Call your local congressman office before hiring a lawyer. Maybe, we all should get together pushing for congressional hearing on this online brokerage issue. Good luck to you all. I feel your pain including mine.
I used Schwab online bill pay. Reviewing Visa credit card payment to of about $18,000 to Visa - Chase, Chase could not find them. After over 3 weeks of my numerous calls, as Schwab could not give me proof of payments, the case was escalated to customer relations. This frustration caused me to become irate, and I told them they were inept and stupid. That was the reason they closed my accounts. When Donald Trump uses the F word, the nation votes in larger and larger numbers, so why is Schwab unable to accept the fact they are inept and stupid? Mr Christopher **, made aware I was not at my mailing address, but in an island without fax, internet. I asked he fax the detailed proof of payments to the local public library where there is limited fax. Since we didn't received them, I showed righteous indignation to him too.
Mr. ** finally sent a "document" without date, account number, to what account # they sent funds, without contact person who sent the document and with reference numbers which were unrecognizable by Chase. Mr ** claimed he did send all details, but it was not true. I asked him to send me proof of this, but he never complied. A few days after, in attempt to access my online account _+August 6 , I was unable. Schwab explained my accounts have been closed, and all funds were mailed to my mailing address a couple days earlier. At no time they advised me in advance. If I would not have gone to check my account, I would have not known about this at all. Mr ** knew I was not at the mailing address, and Schwab sent the checks so I could not bring them to fund another institution to open a new account.
I asked they stop the checks, and wire the funds to my new bank, or re-open the account so I could send the wire and get all payees' information so the transition could be done. For a few days, back and forth, they promised they would, but ultimately refused to wire the funds. It took over one week for them to send me all the names of my payees etc, so I can populate the new account, as did not have any of the bills, as I am away from home. Most of my payments take place at the beginning of the month, and I asked them to please re-open the account, so I can wire the funds to the new institution and at least the pending payments go through, not to ruin my credit.
Customer Advocacy knew I was nowhere near my mail box to collect the mailed checks with my funds. I asked why this capricious and arbitrary decision, and they replied that this was a "corporate decision". They never apologized. Knowing I would be incurring late penalty fees for delayed payments, they offered $300 to cover this. I accepted with the understanding that accepting this, in no way does this waive my rights to report them for unethical business practices. This check however, does not fix my banking bad credit history, nor pay for the incredible inconvenience the payees and I have suffered. Part of the payees are the property tax office, the Medicare, health insurance, mortgage fees, insurances, etc who are paid automatically in pre-scheduled fashion, so all bounced.
Over a month has passed and today, Schwab sent me an e-mail telling me that they will "close" my account as I do not have sufficient funds!! This proves once more, how they are unable to know what their own organization is doing. This is reprehensible and reportable. Today, I requested Schwab sends me free of charge, in paper form, all transactions my accounts (three separate accounts in their firm) by US post to the location I am in, as it is not my mailing address. The documents requested are form January 2015 to the closing date in August 2016, so my accountants can prepare my taxes - that the documents must be mailed to where I am at this is not the mailing address of record, ( I am still out of town, and need this urgently for October tax payments for 2015. This last request was made to Mr Bill **, from customer relations on Sept 12, 2016, who promised he will comply.
A copy of this is sent to the comptroller to currency fax 713 3364301. The office of the US Comptroller already received the document Mr ** claims had all the supporting doc (payments to Amazon). Such complaint was sent by us post. I take the opportunity to request that the banking rules require banking and companies like Schwab to give clients time to move their accounts to other institutions, so all the parties who receive funds from them are not also harmed.
I used Charles Schwab's Bill Pay to make payments on a Honda Finance loan that I had paid current since 2012. In June 2015 I set up the account to autopay the loan through the loan's final payment in 2017. Instead of doing what it was supposed to do, the system overrode the date I put in and set April 2016 as the final payment date. In June 2016, Honda Finance sent a letter threatening collections, and that was when I first became aware that Bill Pay had failed.
I paid the loan payments current, and then had the Schwab rep get on the phone with the Honda rep. The Schwab guy said that the error was likely a Schwab system error, but refused to send a letter or email to Honda because of legal liability issues. Apparently this is an issue they are aware of and are trying to limit liability with very little thought as to how it harms customers. Schwab now refuses to admit its error and instead is telling me that I put in the wrong date. They did not review their system or provide any evidence to counter my witness testimony.
The net result is that my credit has been negatively impacted. I'm trying to buy a house, and the past due is hurting my credit score and could well cost me thousands of dollars more in interest expense. This is an organization that has little regard for customers, and I am moving my accounts from them. I encourage anybody who reads this to do the same.
If you have any money with Charles Schwab move it immediately. Your money is not safe with these crooked thieves. Charles Schwab is an unethical institution that steals from its clients. My husband's grandmother had her IRA account with Charles Schwab for many years and had a "private client" status with them. It was a sizeable account, $800,000.00, and Charles Schwab made a lot of money off of her throughout the years. Unfortunately, my husband's grandmother was being abused both psychologically and financially by her estranged son.
In response to his threats of violence and extortion, she disinherited him. During this time she made several calls to Schwab (all recorded), in which she explained the ongoing abuse to her financial advisor and requested a change of beneficiary form to remove her evil son from her IRA account. She also explained that she wanted to be sure that her two grandsons (my husband and his brother) inherited the account and why. After turning in the change of beneficiary form, she called again to be sure that the new beneficiaries were on file - she was a very thorough woman. Charles Schwab acknowledged the change of beneficiaries and all was thought to be well.
A year after she did this, my husband's grandmother died of cancer. Her two grandsons told Charles Schwab of her passing and began the process of distributing the IRA account into their names. A week after the distribution process was initiated, and one account already funded, Charles Schwab claimed they received a "dispute letter" and froze the distribution of funds and moved them BACK into the deceased grandmother's account. Schwab refused to distribute the IRA funds even though the dispute letter came from the same disinherited son that they had been warned about well over a year prior! Schwab claimed they needed to "research" who the rightful beneficiaries were and after leading on the two boys for weeks finally told them that they would need a court order to distribute the funds.
Charles Schwab refused to honor THEIR OWN beneficiary designation contract. Not only that, they did so after being forewarned by the decedent that her evil son would attempt to steal her money. So, not only is Charles Schwab in breach of contract, they are also guilty of gross negligence and failed to report financially elderly abuse (which is mandated for financial institutions). This company is so greedy and evil that it forced my husband and his brother to take on a lengthy court battle in order to "determine the rightful owners of the account".
Three years we fought in court against a greedy psychopath (the evil disinherited son), who is now jail on over 40 counts of fraud. The boys finally got their court order stating that they were indeed the rightful beneficiaries of the account (go figure!). In our petition we supplied the transcripts of the phone calls that Charles Schwab had on file! Schwab had knowledge as to who the rightful beneficiaries were the entire time and yet did NOTHING! The stupidity and lunacy of this entire situation has completely blown our minds. We did nothing to deserve this and were completely taken advantage of by this sick company.
Now the lawyer's fee's total $150,000.00 and even with the court order Schwab will not release the funds. They have delayed distributing the funds now for over a week... After everything my family has been through! I am beyond disgusted and this will be escalated to the highest degree. The only saving grace is that I have been in communication with our local senator regarding this matter. This is disgusting injustice and I will be sure this company is held accountable.
Schwab closed my account without my consent or any formal notification. Don't invest in this company. Go to Fidelity! They steal my $200,000. This company has a bunch of crooks!
Schwab withdrew $130,000 from my account without my consent. This was not taken on profits only but whenever a trade was made. After speaking to Schwab many advisors and "tax experts" as they are referred to they have not given me an honest explanation as to why this was done. Schwab has told me the IRS advised them to do it, the IRS told me that they NEVER advise a brokerage to do this. Now I am at wits' end to get my money returned to me from the IRS. Schwab is not taking any responsibility and cannot give me an honest explanation as to what happened and why this was done in the first place. I have nowhere to turn and feel like Schwab has stole my money out of my account and it is my problem not theirs.
ConsumerAffairs Research Team
The ConsumerAffairs Research Team believes everyone deserves to make smart decisions. We aim to provide readers with the most up-to-date information available about today's consumer products and services.
Charles Schwab offers a wide range of financial services and products, including online trading for all levels of investors. The publicly-traded company was founded in 1973 and is headquartered in San Francisco. The full-service firm has offices across the country to provide investors with support for whatever type of brokerage service they have.
- Personal consultations: Customers with trading accounts can set up a free consultation with a professional broker to learn about the online trading platform or review their investing strategy. Clients can schedule a phone or online chat consultation or visit a local Charles Schwab office.
- Platform: Charles Schwab’s proprietary StreetSmart Edge® platform was designed to help online traders find investment information and make trades. Interested consumers can visit the website to view a brief demo or have a more extensive walk-through. The Charles Schwab website lists the speed at which the platform executes trades for customers who want to make trades very quickly.
- Research tools: Charles Schwab clients have access to resources to help them gain information about stocks, options and other investment assets, like a letter-grade rating based on Charles Schwab’s predictions.
- Local workshops: Some Charles Schwab offices host live workshops for those with online trade accounts with the company. Interested consumers and existing clients find information for the nearest workshop location online.
- Best for Charles Schwab is best for self-directed investors with some prior knowledge of the stock market. It also has service for semi-involved or hands-off investors.
Compare Online Brokers
Charles Schwab & Co. Company Profile
- Company Name:
- Charles Schwab
- Year Founded:
- 211 Main Street
- San Francisco
- Postal Code: