Consumer complaint received 2024-03-28
Product: Checking or savings account — CD (Certificate of Deposit)
Issue: Managing an account — Problem with fees or penalties
Company: GOLDMAN SACHS BANK USA (SC)

As a concerned customer, I want to share my frustrating experience with Marcus by Goldman Sachs, an online bank. Heres my story : I opened a 10-month CD deposit with Marcus on XX/XX/XXXX, with a maturity date set for XX/XX/XXXX. When my CD matured, I expected to receive clear and transparent communication about my options. Unfortunately, that didnt happen. 

Issue 1 : Automatic Renewal : Marcus automatically renewed my matured CD as a new one without properly informing me. I received an email dated XX/XX/XXXX ( see attached ), which stated : Your 10-month CD will mature on XX/XX/XXXX, and you have choices. If you don't change your maturity plan before then, your balance will roll over to a 12-month CD. You can also change your plan to roll over to a different term or you can plan to withdraw your funds at maturity. Your maturing 10-month CD was a promotional offer. If you do nothing, your balance will roll over to a 12-month CD at the current rate In this email content, they lack to clearly state grace period for me to make my decision by. Further how can someone change their existing CD plan before it matures? If I did that, then Marcus would charge me penalties ( early withdrawal fees ). I hope you see the lack of clarity in the email and confusion it can cause to customers. My money is now locked into another CD for 12 months, until XX/XX/XXXX. This lack of transparency is unacceptable. 

Issue 2 : Transfer Troubles : After my CD matured, I tried multiple times to transfer the balance from my Marcus CD account to my Marcus savings account using the mobile app. However, I encountered errors and couldnt link my CD account successfully. 

Issue 3 : Early Withdrawal Charge : When I called Marcus within 17 days after maturity ( on XX/XX/XXXX ), the first representative, XXXX XXXX, informed me that there would be a charge for early withdrawal fees. But heres the catch : I never authorized Marcus to reinvest my matured balance back into another CD. I had called them within two and half weeks from the maturity date and they could not waive the withdrawal fee due to their lack of communication/transparency. 

Issue 4 : Escalation Department : Frustrated, I requested to be transferred to the escalation department. I specifically asked XXXX XXXX to communicate my issue clearly to the escalation supervisor before transferring me. However, the transfer happened without proper explanation, forcing me to repeat my entire issue and verify my identity again. This inefficiency reflects poor communication within the Marcus team. 

Request for Proof : I spoke to the escalation supervisor, XXXX XXXX, and asked her to provide proof that it was clearly stated my matured balance would automatically be reinvested in another CD with new terms and current rates. The current rate was never specified in the email explicitly. Marcus should always obtain customers authorization of their money before deciding on what they want to do with it. Unfortunately, she was not able to provide any proof. 

In summary, Marcus needs to improve its communication, transparency, and customer service. Automatically renewing CDs without proper notice, authorization, and charging penalties without consent is not acceptable. I hope my experience helps highlight areas for improvement within the Marcus team. I would really appreciate it if Marcus transfers my balance from the CD and into the Saving Account without any fees/penalties.