Consumer complaint received 2023-09-24
Company: ROBINHOOD MARKETS INC.
State: WA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Sometime in midXXXX 2023, I transferred US currency from my wife 's, my own, and my business 's XXXX and/or XXXX bank accounts to an account with Robynhood at XXXX XXXX XXXX Bank for Robynhood Money LLC . 
My XXXX user email - XXXX and my profile user name is @ XXXX The Robinhood routing XXXX account number is XXXX, and the account number is XXXX. This account is accessed through the Robinhood app. I do not have direct access to the XXXX XXXX XXXX account numbered XXXX ; the Robinhood app manages it. 
My funds are restricted within the Robinhood app for unknown and unspecified reasons. I find this illegal, as there is no reason for such " restrictions. '' When I try to withdraw my cash funds, I get the following error message : You have restrictions placed on your account that prevent you from making transfers. Please contact support to get help. - THIS IS ILLGAL!!!

What complicates matters further is that Robynhood comprises multiple organizations, making it nearly impossible to determine who is accountable for what.

Contacting Robynhood about these restrictions is exceedingly tricky. When I try to chat with Robinhood, they end the conversation by promising to connect me to someone, but they have yet to follow through. 
When I call, they ask for bank statements from my accounts without clarifying their reasons. In this age of technology, I find it egregious to request physical bank statements. When transferring money into Robynhood, I never faced any issues. However, the problems arose when I attempted to withdraw. 
Furthermore, to link a bank account to Robynhood, they utilize technology provided by XXXX, which grants Robinhood full-view access to any connected bank accounts. This means they can electronically obtain statements, see account owners and all the transactions for years. So, why is Robynhood requesting physical statements when they have full electronic access to my bank accounts? It appears to be a deliberate ploy to prolong the restriction and hold my funds hostage, which feels like criminal intent.

THEY MUST PROVIDE A CLEAR ANSWER whenever I question the basis for holding my funds, and the answer is we dont know and someone else will respond sometime soon .... when???. It feels like they're breaking the law. After I sent them the requested scanned bank statements, they responded, We can not accept scanned copies. Then, when I provided downloaded copies, they held my funds hostage. I can not transfer anything out or use my hard-earned, taxed money. It's inconceivable that a banking institution could operate so unscrupulously. Whenever I call it feels like someone else in XXXX or XXXX make decisions. How can they allow internationals even to view my personal informal information? Isnt it breaking privacy laws??? 
Robynhood 's XXXX rating is a dismal D minus, with thousands of similar complaints. 
Why haven't they been fined or held to the standards of a legitimate US business? What gives them the authority to retain funds arbitrarily? It's utterly illegal. 
I see the following disclaimers on the Robinhood app : All investing involves risk, including the loss of principal. Brokerage Holdings include securities and related products offered by registered broker-dealer Robinhood Financial LLC , member SIPC. XXXX XXXX are offered by Robinhood XXXX, LLC, are not securities, and are not covered by SIPC. Robinhood XXXX holdings are not offered by Robinhood 's broker-dealer and are therefore not subject to the same regulatory protections as those offered by Robinhood Financial . Robinhood Money , LLC is a licensed money transmitter ( NMLS ID : XXXX ) Further disclosures : XXXX XXXX XXXX Brokerage ( RHS ) Account Number XXXX Brokerage ( APEX ) Account Number XXXX Spending ( RHY ) Routing Number XXXX Spending ( RHY ) Account Number XXXX

Company response to consumer: Closed with explanation