Consumer complaint received 2024-02-07
Product: Checking or savings account — Other banking product or service
Issue: Closing an account — Company closed your account
Company: ROBINHOOD MARKETS INC. (IL)

On XX/XX/XXXX, I experienced an unexpected restriction imposed by Robinhood on my account. Despite inquiries, the company cited the reason for this action was to " protect '' the account. Robinhood requested various documents for identity verification and specific bank statements spanning from XX/XX/XXXX to XX/XX/XXXX, which were duly submitted by me. 

**Details of the Incident : ** - **Initial Contact and Document Submission** : Upon noticing the restriction, I immediately contacted Robinhood for clarification. Robinhood 's response was to ensure account protection without providing a clear rationale for the restriction. They requested extensive documentation for verification purposes, including identity documents and bank statements for specific dates : XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. I complied, submitting all requested documents promptly. 

- **Lack of Communication and Explanation** : Despite fulfilling Robinhood 's documentation requirements, I received no substantial update or explanation for the account restriction. Communication from Robinhood was limited, leaving the me in a state of uncertainty.

- **Notification of Account Closure** : A few weeks following the initial restriction, without any preceding update or resolution, I was informed via email that my Robinhood account would be permanently closed. This decision was communicated unilaterally, with no prior warning or justification provided. 

- **Financial Losses and Partial Refunds** : Subsequent to the account closure notice, Robinhood proceeded to liquidate my stock holdings, resulting in a financial loss estimated at {$13000.00}. The account closure and liquidation left a remaining balance of {$28000.00}, of which only {$12000.00} was returned to me. As of this report, Robinhood has withheld the remaining balance of {$15000.00}. 

- **Repeated Attempts for Resolution** : I have made multiple attempts to contact Robinhood and resolve the issue, specifically to inquire about the timeline for receiving the withheld funds. However, all communications have been met with generic responses, redirecting me to access monthly account statements and tax documents via the app or web, without addressing the query regarding the outstanding balance.

**Conclusion : ** The unilateral actions taken by Robinhood, including the unexplained account restriction, lack of transparent communication, unauthorized account closure, and partial withholding of funds, have resulted in significant financial loss and distress. The repetitive, non-specific responses from Robinhood have obstructed my efforts to seek clarification and restitution. 

This incident raises concerns about Robinhood 's customer service practices, transparency, and the procedures in place for handling account restrictions and closures. I am seeking a full explanation for the actions taken by Robinhood, the immediate release of the remaining balance of {$15000.00}, and compensation for the financial losses incurred due to the unauthorized liquidation of stock holdings.