Consumer complaint received 2020-02-25
Company: ROBINHOOD MARKETS INC.
State: CA
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
On XX/XX/2020 I initiated a transfer of exactly {$1000.00} from my XXXX checking account to my Robinhood account. I initiated this transfer through Robinhood 's app. The funds were deducted from my XXXX account on XX/XX/XXXX. Robinhood credited me {$1000.00} to spend on margin before the funds from XXXX arrived. I spent this money. On XX/XX/2020 I receive an email that a transfer from XXXX was reversed due to " Insufficient Funds ''. I looked at the details of this transfer in the Robinhood app and it stated it was initiated on XX/XX/2020. I did not authorize a second transfer. The transfer Robinhood initiated on XX/XX/2020 resulted in overdraft fees on XXXX 's side because {$1000.00} was already subtracted for the XX/XX/2020 transfer. Luckily, I asked XXXX to undo the fees and they were kind enough to oblige so this is not a problem. The problem is that the transfer I initiated on XX/XX/2020 was marked as " Completed '', yet the funds were not credited to my Robinhood account. In fact, my Robinhood account had a balance of around - {$1000.00}. I contacted support about this and they cited the transfer initiated on XX/XX/2020 ( the one I did not authorize and that bounced ) saying that I spent ~ {$1000.00} in margin and now I owe that because the XXXX transfer was reversed. However, the transfer initiated on XX/XX/2020 was not reversed and the funds were not in my XXXX checkings account either. In fact, at this point the XX/XX/2020 transfer was marked " Completed '' which indicated the money should have arrived and should have been credited to my account.

I was afraid of leaving my account in the negative, so to cover the - {$1000.00}, on XX/XX/2020 I initiated a transfer from XXXX  XXXX XXXX to Robinhood ( again, through Robinhood 's app ). This transfer was completed and funds were successfully transferred on XX/XX/2020. 

Next, because XXXX still had a balance of {$0.00} and funds from XXXX were never credited to my Robinhood account ( apparently they were not because if they were I would have never had a negative balance ) I called XXXX support and explained. They said that because funds were never credited to my Robinhood account, the best course of action would be to reverse the transfer ( I am referring to the one I initiated on XX/XX/2020 ). I believe the reversal for the XX/XX/2020 transfer was started on XX/XX/2020. The reversal went through on XX/XX/2020 and {$1000.00} was credited back to my XXXX checking account. But now the transfer initiated on XX/XX/XXXX was marked as " Reversed '' when it was " Completed '' before and {$1000.00} was taken from my Robinhood account and I was at - {$1000.00} again. I had an extensive conversation with Robinhood support about this. I explained the situation and reasoned with them that : two reversals would yield a net XXXX change on my account balance and {$1000.00} in purchases plus the {$1000.00} that was successfully transferred from XXXX  XXXX XXXX would leave my Robinhood account balance at around {$0.00}. They did not seem to understand and kept reiterating that they looked at it and everything seemed correct. Robinhood support also seemed to indicate that funds from XXXX ( before the reversal ) never reached my Robinhood account. This led me to believe it must have then been an issue with XXXX 's transfer. I spoke to a representative in person who called XXXX 's transfer department which claimed the transfer did in fact go through. The representative pointed out that if the transfer never went through, then the reversal should not have taken money from my Robinhood account. This is where I am now. XXXX claims everything is fine and Robinhood also claims everything is fine, yet I am out {$1000.00}. There does not seem to be a way to get a hold of Robinhood 's transfer department and customer support is not helping so I have run out of options.

Below is a brief numerical summary.

From Robinhood 's perspective : {$1000.00} - Deposit from XXXX - {$1000.00} - Stock purchases - {$1000.00} - Reversal of funds from XXXX {$1000.00} Deposit from XXXX XXXX XXXX Expected balance : {$0.00} Actual balance : ~- {$1000.00} I would like to add that my Robinhood cash balance was around {$0.00} before this ordeal began. 

From XXXX 's perspective : - {$1000.00} - Transfer to Robinhood {$1000.00} - Reversal from Robinhood back to XX/XX/XXXXMy XXXX account 's balance is correct. 

I have attached relevant statements. However, Robinhood does not let me view my XX/XX/XXXXstatement as of XX/XX/2020 so I have attached screenshots of the relevant pieces of information.

Company response to consumer: Closed with explanation