Consumer complaint received 2019-12-18
Company: CHARLES SCHWAB CORPORATION, THE
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
Step 1 : What is this complaint about?

Unauthorized transfer of funds from my brokerage account.

Failure to respond to my report of my debit card being compromised ( for example, bank failed to freeze the debit card but instead allowed unauthorized transactions to go through two days after I reported it compromised ). 
Step 2 : What type of problem are you having? 
On XX/XX/XXXX I reported my debit card stolen over the phone. The bank failed to do anything to protect my account and didnt freeze my debit card. The bank instead allowed the fraudulent transactions to proceed two days later on XX/XX/XXXX. 
In addition to failing to freeze my debit card after it was compromised, the bank ( Schwab ) transferred money from my brokerage account without my authorization to my checking account to cover the fraudulent transactions. The two accounts were not linked at all and I did not opt for overdraft from the brokerage account.

Step 3 : What happened? 
On XX/XX/XXXX, my debit card was compromised due to a fraudulent phone call from someone pretending to be XXXX customer service. The fraudulent call last from XXXX XXXX  to XXXX XXXX. ( XXXX   bill page 4, XXXX and XXXX ) Before the fraudulent call ended at XXXX XXXX, I found they try to steal money from my debit card. I immediately used my wifes phone ( XXXX ) to call Schwab ( XXXX ) to report the fraud and kept the cheater on the phone. 
The representative listened my whole story and told me I report early. He said there was no problem. The fraudulent caller couldnt get any money. He would send me a new debit card. My debit card only had {$14.00} in the account. He said even this money they couldnt get. When I set up the account, I requested that no overdraft on the account. I have a brokerage account. I was worried about it. He checked my account and told me I was correct. He said it is impossible to take money from my brokerage account. 
On XX/XX/XXXX, I found that {$8400.00} was paid out from my brokerage account on XX/XX/XXXX to the fraudulent caller. I did not authorize this transaction. 
I called Charles Schwab to report this unauthorized transaction on my brokerage account. The representative XXXX acknowledged I report the problem on time and told me it was a mistake that the broker side transferred the money. She said it shouldnt happen. But she assured me I would get money back to my account. 
On XX/XX/XXXX, I called Schwab again. The representative answered the phone told me the previous two representatives gave me wrong information. He said you would get the money back in 10 business days. 
On XX/XX/XXXX, XXXX XXXX called me from Schwab fraud department. I told him the whole story. He told me the first two representatives gave me wrong information. He asked me 3 questions, 1. Repeat the conversation with the representative on XX/XX/XXXX. 
2. If I agreed to pay to the fraudulent caller. ( I said no. ) 3. What time I called Charles Schwab. ( I told him on XXXX XXXX. The call time is on the attached XXXX Bill page 10 ). He told me their record showed I called Charles Schwab on XXXX XXXX, which is more than one hour after I paid the cheater. This is of course incorrect as evidenced by the XXXX Bill showing the calls, both the one from the fraudulent caller and the one going to Schwab. 
On XX/XX/XXXX, I received letter from Charles Schwab to tell me my dispute was rejected. 
Step 4 : What company is this complaint about?

Charles Schwab Step 5 : Who are the people involved?

Charles Schwab representatives

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation