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Warning about Etrade
17 years ago
General
I've had a substantial amount of money at etrade for years. I've recently purchased my first house, and I've made financial decisions based on the notion that this money actually belongs to me.
Etrade claims that you can transfer funds from them to another bank account instantly and easily.
When I tried it, it took multiple days to setup the linkage to my personal bank account. And then when I tried to actually make the transfer, they presented me with a list of unreasonable security questions including questions like how old is my sister and what are all the addresses I've ever been associated with (not just lived at, but the street address of any place I've ever worked, banked with, etc). When I was unable to answer these questions quickly enough, they locked my account.
The web site gave me a number to call. I called it. I answered another set of security questions. And then was told a note on the account requires me to call a different number. And that section is not available today. So I had to wait some more days.
I called up the new number when they told me to. Another protracted series of security questions later, they told me I had to photocopy my drivers license and write down the answers to yet another series of security questions including questions like what was my employee number at a job from over half a decade ago. Oh, and btw... the fax has to be received within 60 minutes after the call, or it will be considered to have failed.
It took me most of that time contacting that old company trying to determine what that old employee number was and the rest to drive 10 miles to the only Mailbox Etc I knew. I was then fortunate that the other customers there allowed me to cut in line and get my fax through under the deadline with approximately 90 seconds to spare.
I'll find out in another 2 or 3 days whether I've successfully gained access to my own funds.
A bit of googling finds news reports about rumors that Etrade has been purposefully blocking withdrawls from their institution. When you try to withdraw funds, your account gets locked.
What I went through here did not leave me feeling like they were just trying to protect from identity theft. The hoops I've gone through so far seem more designed to prevent or delay legitimate customers from withdrawing their own funds under the guise of security. They make the process intentionally difficult, confusing, frustrating, and long to the point that the customer will hopefully just give up.
I also found lots of complaints listed with consumer advocate agencies describing very similar situations to mine from many Etrade customers who have been cut off for months from funds they tried to withdraw... some who have even lost their life savings in the process.
I'll tell you what... Etrade was very friendly, professional, and easy to use as long as I was giving them money and trading in the stock market. I made back triple my investment, theoretically. Seemed like a great service, and I felt confident in them. But when I tried to actually withdraw those funds again, suddenly the story got very different. It's like the trap was sprung.
Ye be warned.
With my monies annexed, I don't know whether I'll be able to have a Christmas this year. Or even pay my bills, for that matter. I've been used and ripped off to the tune of tens of thousands of dollars in the last year or so. Not just by them.
Apparently, I am a sucker.
*sigh*
Etrade claims that you can transfer funds from them to another bank account instantly and easily.
When I tried it, it took multiple days to setup the linkage to my personal bank account. And then when I tried to actually make the transfer, they presented me with a list of unreasonable security questions including questions like how old is my sister and what are all the addresses I've ever been associated with (not just lived at, but the street address of any place I've ever worked, banked with, etc). When I was unable to answer these questions quickly enough, they locked my account.
The web site gave me a number to call. I called it. I answered another set of security questions. And then was told a note on the account requires me to call a different number. And that section is not available today. So I had to wait some more days.
I called up the new number when they told me to. Another protracted series of security questions later, they told me I had to photocopy my drivers license and write down the answers to yet another series of security questions including questions like what was my employee number at a job from over half a decade ago. Oh, and btw... the fax has to be received within 60 minutes after the call, or it will be considered to have failed.
It took me most of that time contacting that old company trying to determine what that old employee number was and the rest to drive 10 miles to the only Mailbox Etc I knew. I was then fortunate that the other customers there allowed me to cut in line and get my fax through under the deadline with approximately 90 seconds to spare.
I'll find out in another 2 or 3 days whether I've successfully gained access to my own funds.
A bit of googling finds news reports about rumors that Etrade has been purposefully blocking withdrawls from their institution. When you try to withdraw funds, your account gets locked.
What I went through here did not leave me feeling like they were just trying to protect from identity theft. The hoops I've gone through so far seem more designed to prevent or delay legitimate customers from withdrawing their own funds under the guise of security. They make the process intentionally difficult, confusing, frustrating, and long to the point that the customer will hopefully just give up.
I also found lots of complaints listed with consumer advocate agencies describing very similar situations to mine from many Etrade customers who have been cut off for months from funds they tried to withdraw... some who have even lost their life savings in the process.
I'll tell you what... Etrade was very friendly, professional, and easy to use as long as I was giving them money and trading in the stock market. I made back triple my investment, theoretically. Seemed like a great service, and I felt confident in them. But when I tried to actually withdraw those funds again, suddenly the story got very different. It's like the trap was sprung.
Ye be warned.
With my monies annexed, I don't know whether I'll be able to have a Christmas this year. Or even pay my bills, for that matter. I've been used and ripped off to the tune of tens of thousands of dollars in the last year or so. Not just by them.
Apparently, I am a sucker.
*sigh*
Thanks for the warning, online stock trading is in my near/immediate future as a matter of fact.
It seems awfulyl shady to deal with paypal.
The problem with nontraditional financial institutions like Etrade and Paypal is that the law hasn't caught up with them yet. There's nothing but their own consciences to keep them from exploiting their customers in any way imaginable. And we all know how well humans are held at bay by their consciences.
Laws and regulation don't happen until these companies make these abuses. And so that's exactly what they do... they push at the boundaries to see just how far and for how long they can the sink the hooks into their customers before they are made to stop.
When times are good, they probably won't do it much. But when times are bad...
Anyway, it's a real good idea to research these companies before trusting them to treat your money in an ethical way. My experience with Etrade is mirrored by a whole lot of customers before me. I wish I'd known ahead of time.
And Paypal... well, they've got whole web sites devoted to the effort of exposing their activities. Ignore those warnings at your peril.
What gets me is that a lot of people do know just how much of a criminal organization Paypal is, yet just shrug and use them anyway. Convenience is king, I guess. I find that phenomina more than a little disturbing.
A lot of these businesses are seeing their profits lessen, which means fewer "business trips" and bonuses for CEOs and Execs.
They're trying to keep that money in their hands for as long as they can, counting on the inability, or unwillingness of most average people to engage in long draw-out battles to get it back.
I've never dealt in the Stock Market (I'm not a supported of the system), or had to deal with any situation quite this serious, but my advice is to keep on them. Jump through the hoops as much as you can, but let everyone to speak to know that you've been in contact with the Better Business Bureau, the Attorney General or whatever other watchdog institution covers these matters, and also let them know just how displeased you are and how they have likely lost you as a customer.
As I said, I've never dealt with any organization with as much clout as ETrade, but threatening to spread negative feedback on their company online has given me leverage in the past.
D.O.P.R
Of course, I wish you the best in resolving the fiasco as quickly and smoothly as possibly possible. If I can help, morally or otherwise, you know where to find me. :)
Document the interaction with their complaint department as well.
If you have a lawyer, might be worth paying for an hour of legal advice on the matter. Letters to companies like this on law firm letterhead tend to get noticed.
To think of it, there were so many overly difficult challenges they placed before me. If I had failed just one more little bit, I still wouldn't have my money (and might never have it). It's like a playing a game where the prize for winning is your own lifetime savings.
I won the game. Just barely. I only just squeeked by the level boss on my last life.