Consumer complaint received 2016-07-26
Company: CHARLES SCHWAB CORPORATION, THE
State: MN
Product: Bank account or service
Sub-product: Checking account
Issue: Account opening, closing, or management

Complaint:
I had misplaced my checkbook and I was concerned that somebody might have gotten my account details. I called Schwab bank and they said that I could easily switch to another checking account. Upon setting up the new checking account, I called Schwab inquiring about when I would receive my new debt card and check blanks for the new account. The customer service person said that she had bad news, " Schwab had closed my new checking account, effective yesterday, for business reasons. '' I mentioned that I had a critical Social Security check that was being electronically deposited within the next few days, I asked if it would be possible to accept my Social Security deposit. Schwab customer service stated that it was not possible to accept my Social Security check and that it would be rejected and sent back to Social Security. I mentioned that my rent payment was dependent on this Social Security check, along with numerous electronic payments for various companies. The Schwab customer service person was apologetic but said it was impossible to accept my Social Security check because the account was closed effective yesterday. 

Well, my Social Security check was presented to Schwab and rejected the same day that I had called Schwab inquiring about when I would receive my new debt card and check blanks. Imagine your calling the bank to ask about check blanks and to your surprise they informed you that they closed your account yesterday and that your paycheck would be rejected. 

I later called Schwab and asked them if they were aware of the federal government guidelines when closing bank accounts that have federal Social Social Security deposits. Reference : " XXXX XXXX XXXX ( c ) ( XXXX ) '' and the XXXX A Guide to Federal Government ACH Payments and Collections. '' Per these guidelines, " Financial institutions must give 30 days notice of closing accounts to which benefit payments are being sent ( see XXXX XXXX XXXX XXXX c ) ( XXXX ) ). And, according to the Treasury 's XXXX XXXX, if a financial institution closes such an account for fraud, it must make arrangements for the owner to receive the next direct deposit if it wo n't keep the account open for 30 days. The individual at Schwab, stated that the department that closed my account was not aware of these guidelines. 

Meanwhile, it 's going on two weeks ; I am now fighting eviction, I have incurred additional costs due to electronic " bill pay '' payments that were in process when Schwab closed my account. Additionally, I have spent countless hours trying to get the rejected " critical payment '' check from the Social Security agency. I would like Schwab to immediately provide the Social Security payment which they rejected, cover the costs of eviction and costs that I have incurred due to rejected " bill pay '' payments, and compensation for the time that I have spent managing this situation. This comes to about {$5000.00}. Ironically, all this could have been avoided if Schwab would have adhered to the Federal Guidelines and XXXX XXXX when closing my checking account.

Company response to consumer: Closed with monetary relief