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Prudential Complaint - Unreasonable service fees - 401(k) transfer to IRA
401(k) transfer to IRA - Complaint
DUBUQUE, IOWA -- On February 16, 2010 I requested that Prudential close out my 401k account and rollover / transfer it to my Schwab IRA. They did roll over the account, although it took them 5 days, and charged me $50 for this transfer. I then received a statement two months later showing an ending value as of 3/31/2010 of $0.00.
On September 20, 2010 I received another statement that said I still had $99.72 in my account. I called again on September 21, 2010, told the person this account should have been closed out in February (per my instructions) and requested Prudential again close out the account and rollover / transfer it to a Schwab IRA. The phone personal assured me twice that no charges would be added on this transfer.
On September 25, 2010 I receive a letter from Prudential saying they are transferring only $49.04 to my Schwab account. This is a $50.68 service charge that they said they would not add.
On September 27, 2010 I called the prudential retirement line (877-778-2100) to complain about the additional $50 service charge. The phone personal answered the line and originally said that there were no charges but after several holds admitted that $99.72 was available in my 401(K) and only $49.04 was transferred to my Schwab Plan. Then the phone personal said the charge was normal and customary - no matter that I tried to close the account out in February and had already been charged a $50 transfer fee. He said he could do noting about it.
Unfortunately the Prudential service was inadequate and misleading. I am disappointed because they did not do what they said they would do and not charge the second service charge. An ethical business should have no games, no gimmicks, no gotchaas that I have to deal with. I think the second transfer fee is unreasonable and that the original transfer fee should have covered any transfer. This is not an ethical company.
On September 20, 2010 I received another statement that said I still had $99.72 in my account. I called again on September 21, 2010, told the person this account should have been closed out in February (per my instructions) and requested Prudential again close out the account and rollover / transfer it to a Schwab IRA. The phone personal assured me twice that no charges would be added on this transfer.
On September 25, 2010 I receive a letter from Prudential saying they are transferring only $49.04 to my Schwab account. This is a $50.68 service charge that they said they would not add.
On September 27, 2010 I called the prudential retirement line (877-778-2100) to complain about the additional $50 service charge. The phone personal answered the line and originally said that there were no charges but after several holds admitted that $99.72 was available in my 401(K) and only $49.04 was transferred to my Schwab Plan. Then the phone personal said the charge was normal and customary - no matter that I tried to close the account out in February and had already been charged a $50 transfer fee. He said he could do noting about it.
Unfortunately the Prudential service was inadequate and misleading. I am disappointed because they did not do what they said they would do and not charge the second service charge. An ethical business should have no games, no gimmicks, no gotchaas that I have to deal with. I think the second transfer fee is unreasonable and that the original transfer fee should have covered any transfer. This is not an ethical company.
Comments:
Posted by trmn8r on 2010-09-28:
As a Prudential stockholder, the fact they got an extra $50 from you might normally please me. But this is completely inappropriate, IMO.
This $99.72 that showed up was probably a dividend of some kind that was paid after the transfer. I previously transferred a non-IRA investement account to a brokerage, and they transferred the residual receipts automatically without charge.
I just last week transferred my IRA from one firm to another. The charge was supposed to be $25. I better go check.
Prudential seems to have treated you unfairly. I'm sorry this happened to you.
This $99.72 that showed up was probably a dividend of some kind that was paid after the transfer. I previously transferred a non-IRA investement account to a brokerage, and they transferred the residual receipts automatically without charge.
I just last week transferred my IRA from one firm to another. The charge was supposed to be $25. I better go check.
Prudential seems to have treated you unfairly. I'm sorry this happened to you.
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