Consumer complaint received 2026-02-21 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: CHARLES SCHWAB CORPORATION, THE
State: IL

Complaint narrative:
Since Tuesday, XXXX  XXXX, 2026, Schwab  has locked me out of my checking account and prevented me from curing returned deposited items or resolving any resulting negative balance. Schwab  has refused to provide meaningful information, a resolution path, or a timeline. Schwab  also contacted my long-standing bank, XXXX, and asserted that a wire I initiated was fraudulent, despite the fact that I had sufficient funds available at the time of the wire. This has created financial harm and reputational harm, and it remains unresolved after repeated calls and a branch visit where I provided ID and proof of income. Key facts and timeline Tuesday, XXXX  XXXX, XXXX  Schwab restricted access to my accounts. I was locked out of my checking account and could not conduct normal banking activity. 

XX/XX/XXXX to present I called Schwab repeatedly. Schwab representatives consistently refused to provide any meaningful information, stating that the matter is handled by a different department and that they are not authorized to share details, status, or timing. I received no written explanation, no cure instructions, and no timeline for restoration. 

Returned deposited checks and the inability to cure Prior to the restriction, I deposited checks into my Schwab account. Those checks were subsequently returned because the issuers bank had a security feature blocking check payments. I was unaware of this at the time the checks were deposited. 
Schwabs restriction prevented me from depositing funds back into the account to cure any negative balance caused by the returned checks, even though I was willing and able to do so immediately. 

Wire transfer and Schwabs communication to XXXX While the checks were pending, I initiated a wire from Schwab to my XXXX account on XX/XX/XXXX. At the time the wire was initiated, my Schwab account had sufficient available funds. After the checks were returned, the Schwab account likely became overdrawn. Schwab then contacted XXXX and asserted that the wire was fraudulent and attempted to claw back the funds. Schwab did not communicate this to me in advance, did not provide me details or a written basis, and did not offer me a practical way to resolve the matter, such as allowing a deposit or providing settlement instructions. I have had a XXXX plus year relationship with XXXX and this created reputational and operational harm. 

Branch visit and continued lockout Schwab instructed me to visit a Schwab branch in XXXX, Illinois with ID and proof of income. I complied on XX/XX/XXXX and provided the requested documentation. Despite complying, Schwab still has not restored access and still has not provided a clear resolution path or timeline. 

Professional context ( non-confidential ) I am a CPA and tax professional with XXXX  years of experience. As part of my role, I sometimes negotiate voluntary disclosure arrangements with tax authorities. I am not disclosing any taxpayer identity. My deposits were legitimate, and the checks were returned due to the issuers bank controls, not due to fraud or misconduct on my part. 

Issues I am reporting Prolonged lockout of a consumer checking account without written explanation, status, or timeline. Schwab prevented me from curing returned check activity or any resulting negative balance by blocking deposits and not providing a workable cure process. 

Schwab contacted another bank and asserted fraud related to a wire that was initiated with sufficient funds available, without first notifying me or offering a cure process. 

Inadequate customer service, lack of transparency, and inconsistent handling, including repeated refusal to provide information. 

Requested resolution I am requesting that Schwab : Immediately restore access to my checking account, or provide a written explanation of the restriction basis and a specific timeline for removal. 

Provide a clear method to immediately cure any negative balance or returned item exposure, including a restricted deposit procedure or wire instructions, and confirm in writing that the deposit will be accepted and credited. 

Provide written confirmation of any communications made by Schwab to XXXX alleging fraud or requesting clawback, including dates, and provide a written correction to XXXX if Schwabs fraud allegation was made without a proper basis. 

Remove and reimburse any fees, interest, or charges incurred as a result of the lockout and inability to cure ( including overdraft-related fees ) and compensate for documented losses caused by Schwabs actions.

Company response to consumer: Closed with explanation