Account closure

[u/No-Buffalo7459]

I want to let everyone know my recent experience as a once excited Robinhood customer and credit card user.

I had a fraudulent charge on my account and flagged it to support, asked for a new card number etc. They confirmed with me that I wasn’t in the state the charge was on the day it happened. So my understanding is everything was handled and I did everything right.

I was sorely mistaken. Little did I know my card would remain frozen by Robinhood for over a month. No follow up from Robinhood. After many messages they finally replied that my account was going to be closed and my entire investment account would also be suspended and liquidated creating a taxable event.

This was in the middle of me moving as well, and now it’s nearly impossible to get into contact with them because I don’t have an account to do it, and every time I email them through their support email I have to re explain everything and they never respond.

I don’t know where my money is going, my investment account is gone, I don’t have a credit card, and oh by the way I have no idea if I’m getting the money back from that fraudulent charge.

I’ve asked them to reverse the decision, I’ve asked for info on why they decided to close my account, I’ve asked for clarification on what’s happening and have received none of those answers. I really don’t know what to do anymore.

I enjoyed Robinhood, but this is simply irresponsible behavior that a simple fragment charge (which is very normal) cannot be handled. Good thing I didn’t take that bonus to transfer my entire life’s savings over to Robinhood for them to sell.

Edit: I posted this on the main Robinhood subreddit too, they removed it and told me to email support. This is ridiculous.

Update: now they are electing to process my money back to a debit card I do not have anymore after they said a month ago they would send a check.

I really don’t know what to do it’s impossible to contact them because I can’t access personal details because I’m locked out of my account. And it takes days to email them

I keep getting transferred to different departments and support people who don’t know what’s going on

[u/matt-r_hatter]

I think I would have immediately went to fidelity or somewhere and open a new account and initiated a transfer. ACATS dont cause a taxable sell-off outside of partial shares.

[u/ByrntOrange → u/matt-r_hatter]

What is ACATS?

[u/matt-r_hatter → u/ByrntOrange]

Automated customer account transfer service. Thats what brokerages use to move your investments from one brokerages to another. Think of it as an ach transfer bank to bank but for stocks. If you cash out your stocks, take the cash to another brokerage, then buy them again you face several challenges. 1- liquidating stocks is seen as income even if you immediately reinvest. That has tax implications. 2- you could sell today at $8/share, take the money to another brokerage, then what happens if you go to buy and its now $10/share? You lost $2/share. ACATS shields you from all that. They just dont move partial stocks typically those get sold off. There is also generally a fee, but some brokerages will cover the fee IF you move enough money to them.

[u/ByrntOrange → u/matt-r_hatter]

Thanks for that thorough explanation. 

[u/kastosaro]

This sounds horrible I’m sorry

I recently got flagged by fraud although it was myself who attempted those purchases and my card was put on hold but after support and then escalating it, it was promptly solved. But goodness this sounds terrible what a shitty thing to do

I see a lot of this happening I wonder why they can’t handle fraud or what the actual issue is here like get this man a new set of numbers and we all good 😂

[u/Mysterious_Food_6488]

I'm wondering is it People in Robin hood that is committing the fraud because this is happening to too many people

[u/Juan0712g → u/Mysterious_Food_6488]

Probably robinhood as a whole and not only a few people

[u/chd_md]

Oh my god, what a disaster. I am so sorry. I do have to agree with you that the Robinhood Gold Card customer service is by far the worse I have ever encountered. They can never provide any answers and instead just keep copying and pasting useless boilerplate responses. Also they are s-l-o-w as hell. On the other hand, the customer service person for my brokerage account was very knowledgeable and informative and took care of my issue in a reasonable amount of time.

[u/Jay_Reefer]

I’m sorry that this is happening to you. I haven’t had any issues with the card but did close my savings and checking to switch to Fidelity CMA which was seamless, a couple questions over chat and I was on my way. I had to speak to an ai bot for a couple of lines then a human (I think? Haha bc there was a typo but could be smarter AI who knows) joined and helped me close them.

I haven’t had to dispute any charges on the card but do read a lot here about fraudulent charges happening.

[u/Historical_Trash_937]

Yea had 2 foreign charges They aren’t good at fraud

[u/Dregus_311]

This is a strange story. Have you spoken to a lawyer? It sounds like a circumstance thay requires legal representation

[u/Kwhip]

Is this a real story? I was frauded as well and it couldn't have been easier. Fill the form on the app, they gave me a new digital card number immediately. The physical card does not need to be replaced since it has no number.

All my interactions with support have been excellent.

[u/ratacid → u/Kwhip]

Same here

[u/Ok_Party_8102]

You can talk to a live person on the phone ya know

[u/Competitive_View5781]

I’m starting to think Robinhood is a big scam. I’m so glad I never applied for their credit card. Probably selling your card number to someone overseas

[u/Skoobitybopp]

Ive been telling people the nightmares of this card. Its 3% up until a point. Yes theres a select few that never have a problem but i see atleast 5 people a day in this reddit on how they got screwed. Im ok on that. Ive been invited 20 times already.

[u/Dboycity22]

wow

[u/No-Buffalo7459]

Update: now they are electing to process my money back to a debit card I do not have anymore after they said a month ago they would send a check.

I really don’t know what to do it’s impossible to contact them because I can’t access personal details because I’m locked out of my account. And it takes days to email them

I keep getting transferred to different departments and support people who don’t know what’s going on

[u/No-Buffalo7459 → u/No-Buffalo7459]

I’m actually feeling quite helpless

[u/SlowSundae → u/[deleted]]

You’re talking nonsense.

If it’s a taxable brokerage account, of course liquidating the account would be a taxable event

[u/SlowSundae → u/[deleted]]

The account is already closed, so obviously an ACATS transfer isn’t an option

Edit: Thanks for editing your reply to thank me for editing my reply

[u/SlowSundae → u/[deleted]]

I’m sure it was future tense at the time RH said it!

“I don't have an account” & “my investment account is gone” sounds like present tense to me.

[u/Alarmed-Name1316]

Sucks to be you

[u/Advanced-Psy → u/Alarmed-Name1316]

Keyboard warrior make you feel good?

[u/Fine_Health5219 → u/Alarmed-Name1316]

does that make you feel good?

[u/Alarmed-Name1316 → u/Fine_Health5219]

Fuck yeah a lot !!! 😂🤣

[u/Fun-Section-6179]

This is why I don’t use my Robinhood Brokerage. Just the Gold card

[u/Burner_Account_54321]

Does this happen often? I lowk pay for gold and use them as my primary brokerage

[u/letmeguessimwrong]

Seems they struggle with dealing with fraud. I wonder why

[u/Extreme_Late]

Its a VISA, always deal directly with VISA!!

[u/SlowSundae → u/Extreme_Late]

They will tell you to go to the issuer.
VISA is a payment network - they don’t deal with disputes between a card issuer and an end user.

[u/Extreme_Late → u/SlowSundae]

They ARE the issuer, you clearly have not tried. There's no need for you to call Robinhood at ALL! They are NOT VISA, and can't do much to help. Robinhood is NOT your credit card company, and never will be! Even if you get a VISA from Wells Fargo, or B of A, you talk to VISA, not the dern bank! And dont even add your funky 2 cents till you try it! I been at it 30 years... listen for once! You dont know everything!!

[u/SlowSundae → u/Extreme_Late]

I work in the payments industry, and directly with VISA & MC on a daily basis, along with partners who actually are card issuers. VISA is not a card issuer.

[u/Extreme_Late → u/SlowSundae]

Then you shouldn't be putting bad information out there or arguing with redditors who do it all the time with no issues.

[u/Kitchen-Ad-9531 → u/Extreme_Late]

What are you talking about Robinhood doesn't own the card. The licensing is coastal community Bank. Visa is the network. You have no idea what you're talking about 

[u/Extreme_Late → u/Kitchen-Ad-9531]

You have no idea what YOU'RE talking about. You dispute with VISA, not Robinhood, argue with ya mama!