Consumer complaint received 2023-06-02
Product: Checking or savings account — Savings account
Issue: Opening an account — Confusing or missing disclosures
Company: GOLDMAN SACHS BANK USA (VA)

Marcus by Goldman Sachs advertises a referral bonus of 1.00 % for both an existing deposit customer and a new customer when a new customer opens an Online Savings Account ( OSA ) or CD. Existing customers are provided with a link that can be sent via text or email to a prospective customer. 

" As an existing Marcus deposits customer, you can receive a promotional Marcus Referred Rate ( defined below ) on all of your Marcus Online Savings Account ( XXXX ) ( each an OSA ) after a New Customer ( defined below ) opens a new OSA or Certificate of Deposit ( CD ) using your unique referral link ( a Successful Referral ). '' This is seemingly a deceptive practice when an existing customer without an OSA and only a CD ( for example ) is provided with this link to refer a new customer given that the referral rate bonus of 1.00 % can not be provided on a CD. The link should not be offered if an existing customer does not have an OSA. Also, for a new customer that intends to only open a CD, the 1.00 % bonus will not apply or in the case of a new customer that opens both a CD and an OSA, the referral bonus will not apply for a new customer that opens a CD first and then opens an OSA shortly thereafter because Marcus then views that person as an existing customer ( because the CD was opened first, which was my scenario ). 

On XX/XX/, I was referred to Marcus by an existing customer ( my fiance ) that owns CDs and OSAs with Marcus. I opened the CD on XX/XX/ before the OSA. When attempting to use the referral link on XXXX  to open the OSA during the same online session, I was provided with an error message that the referral bonus would not apply because I was not a " new customer '' ( having opened the CD first ). On XXXX I sent a referral link ( as an existing customer ) to my younger brother who used the link to open an OSA as a new Marcus customer. He advised me on XX/XX/ that he opened a new OSA with the referral link and I immediately opened a new OSA with Marcus in hopes that I would receive the 1.00 % referral bonus too. At the time of opening an OSA, I only had a CD with Marcus ( opened on XXXX  ). On XXXX I called into Marcus because my fiance and I did not see the referral bonus added to our accounts. The representative, XXXX, asked me for the unique code from the referral link in order to have a supervisor apply the referral bonus to my fiance 's OSA ( based on activity from XX/XX/ ). She advised me that she could not add the referral bonus as a " new customer '' to my OSA since I had opened the CD first and was not deemed a " new customer '' for the purposes of receiving the bonus on my OSA as a new customer. I asked her about receiving the bonus on my OSA as an existing customer because my younger brother opened a new OSA on XXXX She advised that my brother would need to call into Marcus with the unique code from the referral link in order to have the referral bonus manually added to my OSA ( also opened on XXXX  ). My brother advised that he saw the referral bonus on his end but was told by Marcus ( via phone call ) that the referral rate could not be manually added to my OSA because the bonus is added automatically. I called back to Marcus to see if the referral bonus could manually be added to my OSA ( as an existing customer bonus ). I was told by a supervisor that since my OSA was not open and active at the time my brother had opened his OSA as a new customer ( albeit later that same day, which seems a ridiculous technicality ) that the referral bonus for an existing customer could not be applied ( see Terms language below under the General section ). 

This language is in the full terms for the offer. One must click on a link to see the additional terms of the offer which are not made apparent in the larger advertisement and is in my opinion deceptive to new and existing customers. 

" TMarcus by Goldman Sachs Referral Program Terms Existing Customers As an existing Marcus deposits customer, you can receive a promotional Marcus Referred Rate ( defined below ) on all of your Marcus Online Savings Account ( s ) ( each an OSA ) after a New Customer ( defined below ) opens a new OSA or Certificate of Deposit ( CD ) using your unique referral link ( a Successful Referral ). Adding a joint owner to an existing OSA will not count as a Successful Referral. Your unique referral link will be accessible in the Marcus Referred Center. You can access the Marcus Referred Center by logging in and selecting Marcus Referred in the menu at the upper right corner of any page. 

After a Successful Referral, all of your existing OSAs will earn a promotional Annual Percentage Yield ( APY ) increase that is a specific percentage higher than the stated APY available at www.marcus.com for a period of 3 months ( Marcus Referred Rate ). To determine the APY increase for the applicable 3-month period, please refer to the Online Savings Account Referral Page [ marcus.com/referrals ]. If the Successful Referral occurs before XXXX XXXX XXXX, you will receive the APY increase reflected on the Online Savings Account Referral Page on the day of the Successful Referral. If the Successful Referral occurs after XXXX XXXX XXXX, you will receive the APY increase reflected on the Online Savings Account Referral Page on the day after the Successful Referral. You must have an OSA at the time of a Successful Referral to earn a Marcus Referred Rate. New OSAs opened after a Successful Referral may also be eligible for a Marcus Referred Rate, as further detailed in the General section below. A Marcus Referred Rate will automatically start within 1 business day following a Successful Referral.

Jointly owned OSAs may receive a Marcus Referred Rate through the Successful Referral of any account owner, but individual Marcus Referred Rate maximums still apply. The dates associated with the 3-month period of a Marcus Referred Rate on your individually owned OSAs may differ from that on your jointly owned OSAs. 

New Customers If you have not had a Marcus OSA or CD in the last 12 months ( a New Customer ), you can receive a Marcus Referred Rate when you use an existing customers unique referral link to open a new OSA. You will receive your Marcus Referred Rate for a period of 3 months, within 1 business day of when your OSA is opened using an existing customers unique referral link. New jointly owned OSAs opened through a unique referral link can receive a Marcus Referred Rate, provided that all account owners at the time of account opening are New Customers. The Marcus Referred Rate earned as a New Customer will not count towards your referral maximums ( see General section below for more information regarding maximums ). 

By using an existing customers unique referral link to open an account, you acknowledge that the customer whose unique referral link you use may know that you opened a Marcus account and when. If you wish to avoid this, do not sign up for a Marcus account through a unique referral link.

General To receive a Marcus Referred Rate, your OSAs must be open and in good standing. CDs are not eligible to receive any APY promotional rates through Marcus Referred. You can see the status of all your earned Marcus Referred Rates in the Marcus Referred Center at any time. 

If you open new OSAs while any of your existing OSAs are receiving a Marcus Referred Rate, we will apply the Marcus Referred Rate to your new OSAs. You will receive the Marcus Referred Rate through the latest expiration date of your then-current Marcus Referred Rate.

If any joint owner of a jointly owned OSA is currently receiving a Marcus Referred Rate when a new jointly owned OSA is opened, that jointly owned OSA will receive a Marcus Referred Rate through the latest expiration date of an active Marcus Referred Rate associated with any one joint owner under the terms and conditions of that Promotional Rate. Subsequent Marcus Referred Rates earned by any joint owner will result in an accrual of additional 3-month Marcus Referred Rates, each to be applied consecutively. The Successful Referral of any one owner on a jointly owned OSA will only be applied towards that owners individual Marcus Referred Rate maximum.

Marcus Referred Rates may only be combined with other non-referral promotional offers available to Marcus customers. You can earn a maximum combined total of 5 Marcus Referred Rates under these Referral Program Terms and any other Marcus by Goldman Sachs referral programs in each calendar year. If you are already receiving a Marcus Referred Rate, the next Marcus Referred Rate you earn will begin on the day after your current Marcus Referred Rate expires based on the terms and conditions of that Marcus Referred Rate. Only one Marcus Referred Rate will be applied to your OSAs at any given time. Upon expiration of a Marcus Referred Rate, the APY on your OSA will automatically revert to the stated APY available at www.marcus.com. APY may change at any time, before or after an account is opened. 

Any other Marcus by Goldman Sachs referral programs will be treated as a separate referral program with separate terms, offer period, and/or benefits. We reserve the right to revoke or modify this program at any time without notice, which could include changing the type of promotion awarded or the amount of any promotional rate. If we determine that you have engaged in or plan to engage in abuse or gaming in connection with this offer, you will not be eligible for this offer. '' I asked for the supervisor to log this matter as a " complaint '' and to follow-up based on Marcus ' error resolution process. The supervisor responded that there would be no follow-up because Marcus is following the terms and conditions of the offer and that no further action was necessary.