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Fidelity Investments Complaint - Misdirection of Funds/Deplorable Service - Retirement Account
Retirement Account - Complaint
MULTI CITIES -- I AM DISPUTING A PENALTY BEING CHARGED TO ME BY FIDELITY INVESTMENTS - WITH A COMPLAINT REGARDING POOR TO NONEXISTENT CUSTOMER SERVICE, INTENTIONAL MISDIRECTION OF FUNDS AND DELAY IN PROVIDING REQUESTED FUNDS TO INVESTOR.
My former employer of 14months, contracted with Fidelity Investments to oversee employee benefits. They automatically create a 401k savings plan for all employees at time of hire. As far as I know, employees are not given a choice regarding this saving. Sound a little funky?? After I terminated my employment, I received a letter from Fidelity which stated my account balance was too low to leave in this basic 401k and I must make a decision to roll over to new employer plan, accept the money or roll to a Fidelity IRA - response required by 2/22/2008. On 2/20/2008 I contacted Fidelity Retirement and discussed my options in detail. I instructed the rep to send me a check. He verified my address, and confirmed I did not want any tax deduction at this time. I was to receive my check in approx 5 days. On Tuesday, February 26, 2008 12:05 AM I received a form letter email from Steven P Akin, President Personal Investments stating my 'rollover assets have been received and I need to contact them to set up my IRA!! A letter dated 2/25 later arrived informing me of a 'de minimis distribution with subsequent transfer to an IRA' with my beginning balance noted as 2226.10 less 545.92(noted as forfeited amount)leaving me with 1680.18 in an IRA!!
I NEVER ASKED FOR THE IRA!!! TAKE NOTE: I ALREADY HAVE AN IRA WITH FIDELITY (ALSO SET UP UNDER QUESTIONABLE CIRCUMSTANCES BY THEIR PHONE REP LAST YEAR WHEN I STARTED THAT JOB!!) WHY WOULD I WANT ANOTHER ONE???? The same letter states 'Please verify your transaction for accuracy and report any discrepancies within 30 days'.
***ADDENDUM - MY EFFORTS TO REACH FIDELITY BEGAN THE VERY DAY I RECVD CONFIRMATION OF THEIR ERROR***
WELL - I STARTED CALLING THEM(multiple attempts to log on to website have been equally exasperating). On call #1 I was informed I could take the money out of the IRA less the withdrawal penalty - only $50, but that's a lot of money to me and I DIDN'T MAKE THE MISTAKE - THEY DID!!! I did not accept that offer and asked to speak to a supervisor, Trading Supervisor in Dallas - he was extremely UNPROFESSIONAL, RUDE, CONDESCENDING, and absolutely refused to recognize the error made by his company. He ultimately instructed me to go to their website and request my money - less the $50 of course. I was in tears by this time. I called back and fairly easily tracked down the original rep, who remembered me immediately. He looked at my file and stated outright it was his error - he apologized profusely and stated he forgot to handle my transaction after our phone call on 2/20. He further stated he would 'pay me out of his own pocket if he could' and would contact his supervisor and call me back. He did call back the same evening Monday 3/3 however I was leaving work and missed his call. I have been trying to reach him ever since.
I have been told he is in 2 different time zones and his work schedule has been quoted as everything from 8am EST thru midnight MST! Sometimes I'm told he's "on the other line" then the same day another call, another person will tell me he hasn't come to work yet!?!? (How come it was so easy to find him before my file had these problems noted in it???) I have called multiple times daily asking for his x 3281 - what happens next is nothing short of amazing!!! I am transfered and security checked (really scary questions they ask about my past life-things even I had forgotten!)a minimum of 3 times per phone call, all the individuals I've spoken with read my file and tell me to hold while they 'try to help' - the hold time averages about 30mins between people 'helping me'.(usually my cell phone since I'm @ work) - today during my lunch break, after speaking to 3 people I was transfered to a 'Supervisor'(after 28mins into the call) and he informed me I 'need to speak with ...the very person I had asked for 30mins earlier and had even requested his extension!!!!
I am soooo frustrated - I need the money right now, and at this point have no promise of getting any of it with or without my rightful $50! Late today (7:30pm)EST I called again and told the 2nd person who came to the phone 'I give up - just send me a check - he said...'hold on and I'll get someone to help you'...... I held on till 8pm - no one ever came to the phone, I was still at work and the building closes at 8 so I had to leave.......unresolved again.
THIS MEGA COMPANY NEEDS TO BE STOPPED FROM ABUSING AND BE-LITTLING PEOPLE LIKE MYSELF WHO ARE NOT THE WARREN BUFFETS OF THE WORLD! HOW CAN THEY POSSIBLY BE SO BIG AND SUCCESSFUL WITH THIS APPARENT CORPORATE POLICY OF DECEPTION, DISHONESTY AND LACK OF REGARD FOR THEIR CUSTOMER!
FAIR WARNING TO ALL....WATCH YOUR ASS-ETS IF YOU ARE FORCED INTO USING FIDELITY!
My former employer of 14months, contracted with Fidelity Investments to oversee employee benefits. They automatically create a 401k savings plan for all employees at time of hire. As far as I know, employees are not given a choice regarding this saving. Sound a little funky?? After I terminated my employment, I received a letter from Fidelity which stated my account balance was too low to leave in this basic 401k and I must make a decision to roll over to new employer plan, accept the money or roll to a Fidelity IRA - response required by 2/22/2008. On 2/20/2008 I contacted Fidelity Retirement and discussed my options in detail. I instructed the rep to send me a check. He verified my address, and confirmed I did not want any tax deduction at this time. I was to receive my check in approx 5 days. On Tuesday, February 26, 2008 12:05 AM I received a form letter email from Steven P Akin, President Personal Investments stating my 'rollover assets have been received and I need to contact them to set up my IRA!! A letter dated 2/25 later arrived informing me of a 'de minimis distribution with subsequent transfer to an IRA' with my beginning balance noted as 2226.10 less 545.92(noted as forfeited amount)leaving me with 1680.18 in an IRA!!
I NEVER ASKED FOR THE IRA!!! TAKE NOTE: I ALREADY HAVE AN IRA WITH FIDELITY (ALSO SET UP UNDER QUESTIONABLE CIRCUMSTANCES BY THEIR PHONE REP LAST YEAR WHEN I STARTED THAT JOB!!) WHY WOULD I WANT ANOTHER ONE???? The same letter states 'Please verify your transaction for accuracy and report any discrepancies within 30 days'.
***ADDENDUM - MY EFFORTS TO REACH FIDELITY BEGAN THE VERY DAY I RECVD CONFIRMATION OF THEIR ERROR***
WELL - I STARTED CALLING THEM(multiple attempts to log on to website have been equally exasperating). On call #1 I was informed I could take the money out of the IRA less the withdrawal penalty - only $50, but that's a lot of money to me and I DIDN'T MAKE THE MISTAKE - THEY DID!!! I did not accept that offer and asked to speak to a supervisor, Trading Supervisor in Dallas - he was extremely UNPROFESSIONAL, RUDE, CONDESCENDING, and absolutely refused to recognize the error made by his company. He ultimately instructed me to go to their website and request my money - less the $50 of course. I was in tears by this time. I called back and fairly easily tracked down the original rep, who remembered me immediately. He looked at my file and stated outright it was his error - he apologized profusely and stated he forgot to handle my transaction after our phone call on 2/20. He further stated he would 'pay me out of his own pocket if he could' and would contact his supervisor and call me back. He did call back the same evening Monday 3/3 however I was leaving work and missed his call. I have been trying to reach him ever since.
I have been told he is in 2 different time zones and his work schedule has been quoted as everything from 8am EST thru midnight MST! Sometimes I'm told he's "on the other line" then the same day another call, another person will tell me he hasn't come to work yet!?!? (How come it was so easy to find him before my file had these problems noted in it???) I have called multiple times daily asking for his x 3281 - what happens next is nothing short of amazing!!! I am transfered and security checked (really scary questions they ask about my past life-things even I had forgotten!)a minimum of 3 times per phone call, all the individuals I've spoken with read my file and tell me to hold while they 'try to help' - the hold time averages about 30mins between people 'helping me'.(usually my cell phone since I'm @ work) - today during my lunch break, after speaking to 3 people I was transfered to a 'Supervisor'(after 28mins into the call) and he informed me I 'need to speak with ...the very person I had asked for 30mins earlier and had even requested his extension!!!!
I am soooo frustrated - I need the money right now, and at this point have no promise of getting any of it with or without my rightful $50! Late today (7:30pm)EST I called again and told the 2nd person who came to the phone 'I give up - just send me a check - he said...'hold on and I'll get someone to help you'...... I held on till 8pm - no one ever came to the phone, I was still at work and the building closes at 8 so I had to leave.......unresolved again.
THIS MEGA COMPANY NEEDS TO BE STOPPED FROM ABUSING AND BE-LITTLING PEOPLE LIKE MYSELF WHO ARE NOT THE WARREN BUFFETS OF THE WORLD! HOW CAN THEY POSSIBLY BE SO BIG AND SUCCESSFUL WITH THIS APPARENT CORPORATE POLICY OF DECEPTION, DISHONESTY AND LACK OF REGARD FOR THEIR CUSTOMER!
FAIR WARNING TO ALL....WATCH YOUR ASS-ETS IF YOU ARE FORCED INTO USING FIDELITY!
Comments:
Posted by madconsumer on 2008-03-07:
how long from the time you received the letter, and called them?
you should have acted sooner for your own expected results.
you should have acted sooner for your own expected results.
Posted by Principissa on 2008-03-07:
You should have contacted them the day you got the letter. Then you would have gotten the results you expected.
Posted by KenPopcorn on 2008-03-07:
I don't believe you can withdraw your 401k and not take a tax hit. I think they are required by law to withhold a large chunk of it as a penalty for withdrawal, unless you are withdrawing for certain, specific purposes. There seems to be confusion on both sides here.
Posted by PIZDOFFP@ on 2008-03-20:
Thanks for the notes from everyone...I'm sorry for the confusion - my complaint w/Fidelity has nothing to do with taxing my 401K - my "beef" is the PENALTY imposed by Fidelity - not the IRS. I did not request an IRA - I requested a payout - it is documented in my file - the person at Fidelity who made the error acknowleged it in writing and verbally to me. I do not rightfully owe them the $50 withdrawal fee. Unfortunately at this point I have given up after a documented 23 phone calls generated to them and email back from their customer service dept with no resolution. Fidelity refuses to admit to their mistake and it is costing me $50 !! DO THE MATH - MILLIONS OF INVESTORS WITH THEM - SKIM $50 FROM EACH OF THEM - NO WONDER THEY CLAIM TO BE SUCCESSFUL!!
Posted by MomMom on 2008-09-15:
They did about the same with me - I retired Jan 2008, requested my funds to close account. They sent me a check, but somehow left $96.50 in the account which I did not discover until a statement came in August. I called to request this money. After fees, etc. the new balance was $17.31, they said after deducting fees to send a check and close account I would recieve $8.29! I did not get a check, but the next month I got a statement saying their fees now left me with a ZERO balance. I called to ask WHEN the fees were assessed, and it was on the same date that I was told I would get a check for $8.29. They are just ripping off people by nickels and dimes! Change to another company if possible.
Posted by rodger dodger on 2013-04-06:
Your 401k funds were rolled to an IRA to what is commonly known as a "de minimis distribution" that is almost always established by your previous employer---not the investment company being Fidelity in this case....look at the plan rules (the plan rules your company established with Fidelity) and you'll see it there....this is very common for 401k accts that are under $1K after you leave the firm...you are supposed to get a letter describing the consequences several weeks before this takes place...again, this is common pratice...I've experienced it several times in the past, but always acted way before the deadline and never had a problem....the $50 you are referring to is the free to close out the IRA (also, common to most companys)...this is supposed to cover the fees of administering, record keeping, reporting, and closing the IRA that was auto-opened for you because you waited to long to request your funds before the deadline...my 3 cents.
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