Etrade - BAD Customer Service Results in What Feels Like STRONG ARM ROBBERY

Complaint

Review by jerinmichigan on 2012-05-09

Rating:

NEW YORK, NEW YORK -- I opened an Etrade account last year (2011) and set-up a regularly scheduled transfer and everything was going as planned until Febuary (2012) when the amount of the transfer was DOUBLE the a lotted amount. I immediately called Etrade Customer Service and was SPECIFICALLY TOLD 'There was a GLITCH in the system and that this would not happen again and that they have looked into my account and if I was to have the extra money that was transferred refunded that it would have repicutions on me come tax time or for the early redemption clause on the mutual fund that I had been purchasing".

So now fast forward to May (2012) the extra money had still been being transferred into my IRA account but I was able to manage and thought "well this will only benefit me in the long run by making double the contributions I origianlly set off to make" but I had stopped all "automatic buys", and waited for money to show up in my IRA and than I would personally purchase right, this is what I was told that I can do on ANOTHER call with Etarde Customer Service, but get this here I am in May and I realize my account is in the NEGATIVE, so I call them on Monday to get this straightened out and was told that one of my AUTOMATIC TRANSFERS would clear in 2 days and that I should call back than and figure out what I need to do to keep this from happening again.

I get a call 3 days later explaining to me that I need transfer money into my account immediately to cover the cash call or Etrade will be forced to sell shares in order to cover the negative amount holding me responsible for any and all tax liabilities in the future unless I do a quick transfer. My complaint is why was this dragged out until I hit a negative amount when I origianlly called about this 3 1/2 months ago and the fact that it was their wrong doing and mis information that caused this so why I am the one being penalized for their mistakes. They should be the one's who have to wait until the next transfer in order to cover the negative portion of the account.