A Fidelity customer now reports missing a whopping $75K after the bank had shut down their account without warning or explanation.
The anonymous consumer claims they have complied with all the bank’s requests but still to no avail, reports The-Sun.
The Reddit community /fidelityinvestments is an unofficial support hub used by customers of Fidelity – the multinational financial services and asset management firm.
Over 82 million Americans have some kind of account with Fidelity – whether that be a brokerage account, a 401K, or a regular savings account.
But one customer recently claims they ran into a huge issue after they transferred $75,000 to a Certificate of Deposit (CD) with Fidelity.
A CD is an investment product that can deliver interest on a lump-sum amount over a long period of time.
As Reddit user Local_Ad_3951 explained in a post to r/fidelityinvestments, they had transferred $75,000 to Fidelity to invest into a CD after selling their house.
“I opened an account with Fidelity after my sister recommended them because she’s had her account with them for 20+ years,” wrote the user.
“Two weeks after transferring $75k into my new Fidelity account, they inform me that the account is suspended and they won’t give me a reason.”
The Redditor claimed that Fidelity was refusing to return their money.
“Now they refuse to return my money!” they wrote, claiming: “I have called them multiple times trying to get my money back.
“They tell me I need to send them proof of this, that, and the other all of which I have complied with, only to be told later that they still can’t return my money.”
The Redditor claimed that they had sent the bank two forms of their government-issued photo ID, a copy of their bank statement showing where the funds had come from, and a utility bill as a proof of address.
Sometimes, accounts and transactions are accidentally flagged by banks for fraud, money-laundering, or other serious issues, reports The-Sun.
“In further comments, the Redditor revealed that they were no longer in the US and that they owed back taxes.
Although these are not necessarily against the rules of every bank, they can be reasons why a transaction could be flagged for suspicious activity.”
Also Read: A US Bank is Now Denying Customers Access to Money
Other Banking News Today
A bank now fails to prevent a retiree from losing all her money after the Memphis, Tennessee, resident fell victim to scammers.
Maureen Rosenblum, 88, is now demanding she be compensated $500,000 by her bank after losing $120,000 to the fraudsters.
She claims her bank failed to prevent the fraudulent charges.
Her son, attorney Jeffrey Rosenblum, claims that his mom’s bank allowed the fraudulent transactions to occur.
According to the suit, Regions Bank approved two large transactions from Maureen in late November of last year.
“She got a message on her laptop,” the attorney reported.
“One of the things she enjoyed doing is getting on Facebook and emailing her friends who moved away from Memphis, and she sees this message, ‘Your computer’s been hacked!’ and she panicked.”
Maureen contacted the fraudsters soon after, ultimately losing her $120,000 in life savings after wiring the money from her financial institution, Regions Bank.
On November 28, Rosenblum worked with his mother to file a lawsuit against the bank, claiming they should have prevented their client from taking out the cash to pay the scammers, reports The-Sun.
They’re asking for at least $500,000 for Regions Bank’s alleged “negligence” in letting the 88-year-old withdraw the considerable funds.
The scammers claimed to be part of Microsoft’s “fraud department,” per the suit.
A man who referred to himself as “Josh” then told Maureen over the phone that she should transfer at least $95,000 to “protected accounts” so her money wouldn’t be stolen from the “hack,” the suit continued.
The fraudster then allegedly gave Maureen the information for an account at Hang Seng Bank in Hong Kong, China, for the money to be wired.
According to the lawsuit, Maureen also claimed Josh told her to inform employees at Regions Bank that the excess funds were for a family emergency when asked.
The first $95,000 wire transfer was approved, per the suit, and Maureen went back only one day later for another transfer of $25,000.
“She was told by this ‘Josh’ fella to go back to the bank the following day and to wire $25,000 more to a man called Shen Ciao Hsin at Standard Charter Bank in Hong Kong and Regions Bank again allowed her to do it,” Rosenblum claimed.
Maureen is now requesting $500,000 in damages from the financial institution along with the $120,000 she lost, the suit states.
Also Read: The US Treasury Direct is Now Freezing Customer Accounts
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