Consumer complaint received 2023-09-01
Company: ROBINHOOD MARKETS INC.
State: TX
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
I have owned a Robinhood account since 2018 and have used it as a source of trading stocks and generating interest on the funds that I have. I've never had a problem with them until this point. Robinhood is currently paying 4.9 % if you purchase Robinhood Gold for {$5.00} a month, but I found another bank called XXXX that is paying 5.26 % APY in interest and so I decided to transfer my money there and earn the higher interest. Originally, I made a {$50000.00} transfer to the account ( XXXX ) through plaid verification and all was fine but I decided to transfer another {$10000.00} to capitalize on the interest. However, I tried to hook up the new money market account on Robinhood and verified it through micro deposits but after verifying, I tried to make the transfer and it was rejected. I contacted support and they told me I was unable to transfer funds to the new account despite just doing it as funds have to sit in Robinhood for 60 days before I can transfer to a new external account. The only work-around they had was providing bank statements from my old account, new account, driver license, etc. I told them I did not have a new bank statement as the account was only weeks old at this time and mentioned I previously transferred and had no issue. They told me I had to get a special account verification forum from the new bank and I decided this was too much of a headache and was just going to transfer to my old XXXX bank ( XXXX ) and then move it from there since I wouldn't have to go through all of this. The representative said I could do that and could use that method as a work-around. Upon trying to withdraw to XXXX, they restricted my account and have been holding my money XXXX for nearly a week demanding all of these statements. Every time I call them, their " specialists '' ask me ridiculous questions about who helped me create my account 5 years ago, the source of money, and keep demanding statements from an account that I'm not even trying to transfer directly to them anymore. When I tell them I'm trying to transfer to the same account that I put the funds in Robinhood from and have had on there since 2018, it seems like they can not go off of their script and ignore the whole question. They never update me nor do anything and I have to call nearly daily and they ask me the same questions. I've tried to get a supervisor callback from 3 representatives and either they never place the order for that or they decide not to call. I have nearly {$15000.00} on my Robinhood account I want out of Robinhood to never utilize their services again as this is completely ridiculous. They care more about the fact that I've sent multiple people crypto than locking down my account and missing the whole point of why it was restricted in the first place. My funds should not be restricted nor should they be frozen and unable to move to the original account the funds came from. I understand their guidelines for a new external account, but after being told from the one representative that I would just have to use the old account and them restricting me I have had enough. They shouldn't be asking me who helped set up my account 5 years ago and holding my money XXXX because I cancelled my Robinhood Gold subscription and want my money out of there. Their support is terrible and they never return phone calls nor answer any of your questions. They tell you your money is stuck for weeks for " security reasons. '' That's completely absurd and they can not understand the whole premise of why this happened in the first place.

Company response to consumer: Closed with explanation