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E*Trade Securities Informative - Unwarranted Fees - Security Trading

Review by Alaskagriz on 2007-06-20
MERRIFIELD, VIRGINIA -- Dear Sir or Madam:
Subject: Complaint against E*Trade Securities
The purpose of this letter is to post a formal online complaint against E*Trade Securities, Merrifield, Virginia. Many years ago I started an E*Trade account; I do not know the exact date. When I started my account, I made it perfectly clear to E*Trade that I did not want the option of trading on margin. I did this on more than several occasions and it can be verified that I NEVER used this option. I urge you to check out the fact that I never traded on margin. I like to use the stock market but choose not to gamble to the extent of purchasing on margin. I was told and believed that this option was not set up or a part of my E*Trade account.

When the technology crash occurred a few years ago I salvaged what I could but had a few “straggler” stocks left over that I wanted to keep. I did not trade for several years because of the financial burden caused by the crash. In early 2007, I called E*Trade and was informed that a couple of $40 “service fees” had been charged against my account by E*Trade. I told my E*Trade telephone contact that I didn’t understand the reasoning behind the service charge and my phone contact said that the charges would be removed as a courtesy gesture. He said that I should close my account to prevent future charges of this nature. At that time I made the decision to close out my E*Trade account. Prior to talking with my E*Trade phone contact I had never seen any charges of this nature.
On May 15th, 2007 I sold 90 shares of VOXX for $13.03. The principal was $1,172.70 and there was a commission fee of $12.99. There was an additional fee of $0.02 and the net amount for me was $1,159.69. On the same date I sold 85 shares of PRTL for $0.685. The principal was $58.23 and there was a commission fee of $12.99. There was an additional fee of $0.01 and the net amount for me was $45.23.

On May 16th, 2007 I sold 40 shares of ADCT for $17.67. The principal was $706.80 and there was a commission fee of $12.99. There was an additional fee of $0.02 and the net amount for me was $693.79. The sum of these aforementioned sales is $1,898.71, which should have been the amount that E*Trade paid out to me. Instead, they paid me $1,045.77 which was $852.94 less than they owed me.
I called E*Trade to ask about the discrepancy and my telephone contact said that he couldn’t explain the charges to me but it had something to do with trading on the margin. I explained that I NEVER traded on the margin and the phone contact could not explain the discrepancy any further. A few days later I received an account statement from E*Trade showing that E*Trade had charged my account $847.64 and called the fee a “Margin Debt.” This is outrageous since I told E*Trade when I signed up for the account that I would never trade on the margin. As far as I am concerned this $847.64 charge is a hidden bogus fee and nothing that I agreed to. I believe that E*Trade should pay me this money along with the daily interest that is accruing.
Comments:1 Replies - Latest reply on 2007-06-20
Posted by poppapia on 2007-06-20:
If you are 100% positive you can prove your case, hire an attorney. Etrade won't listen to you without legal counsel (personal experience).

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