Consumer complaint received 2026-02-19 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Charged fees or interest you didn't expect — 
Company: MORGAN STANLEY & CO. LLC
State: CA

Complaint narrative:
Hello, I previously opened case # XXXX. It was closed upon the company 's response without any further attempt to clarify me for accuracy or to see if a resolution had been reached. Here is my response back to the company 's reply : Dear XXXX XXXX : I am in receipt of your letter sent on XX/XX/XXXX regarding my Liquidity Access Line Account ( XXXX Account No. XXXX ). I write to identify several significant inaccuracies and unresolved concerns in Morgan Stanley 's account of events, and to request written correction and remediation of each. I. MATERIAL INACCURACY REGARDING INTEREST RATE APPLICATION Your letter states that my fixed-rate promotion became effective on XX/XX/XXXX, but omits several key facts. I was expressly advised by a Morgan Stanley Virtual XXXX that I was required to draw funds before the promotional fixed rate would be applied, and that the fixed rate would be retroactively applied to the date of the advance. I borrowed the entire balance from my XXXX Account on a single day, under the fixed-rate promotional terms that were active and available to me at that time. There were no subsequent borrowings that would justify the application of different interest rate terms to any portion of my balance. It is also wholly inconsistent with the representations made to me that a deposit of funds made in response to Morgan Stanley 's own maintenance call would somehow trigger interest at a variable rate. I received no disclosure, oral or written, that any variable rate would apply during any interim period. The persistence of a variable-rate balance of {$72.00} is either a system error in Morgan Stanley XXXX XXXX rate application protocols or an improper application of terms contrary to the promotional offer I accepted. While I appreciate the credit previously applied to my account, the variable rate line continues to accrue interest, now reflected as an additional {$0.00} charge, which I do not owe. Either scenario represents a serious problem that must be immediately corrected. XXXX. MISLEADING STATEMENTS REGARDING XXXX XXXX Your letter states that pledged securities XXXX be sold without prior notice to maintain required collateral levels. While this reflects a contractual right, the statement is misleading in context and omits facts that are central to my dispute. Morgan Stanley did provide me with advance notice of the XX/XX/XXXX maintenance call and explicitly offered me the option to satisfy the call by depositing funds. I exercised that option and deposited the full requested amount on the same calendar day. Critically, no firm deadline was specified in the notification. Morgan Stanley liquidated securities nonetheless, notwithstanding my timely, same-day response. By invoking the contractual right to sell without notice while failing to acknowledge that notice was in fact given, that a cure option was offered, and that I complied with that option in a timely manner, your letter creates a false impression that my response was inadequate and that the liquidation was therefore appropriate. This is not a mere omission it is a material misrepresentation of what transpired. The issue is not whether Morgan Stanley has the contractual right to liquidate securities. The issue is why Morgan Stanley liquidated securities after I had already complied with the notice and cure option it provided, without having specified any deadline by which that cure was required. A party may not simultaneously invite curative action and then take adverse action against a client who responds to that invitation in good faith and in a timely manner. III. ADDITIONAL OPERATIONAL FAILURES NOT ADDRESSED IN THE FIRM 'S RESPONSE Beyond the matters raised above, Morgan Stanley 's XX/XX/XXXX response fails entirely to address the following specific and documented concerns : XXXX. Liquidation of restricted securities : Morgan Stanley liquidated securities that were subject to documented trading blackout restrictions, of which I had provided the XXXX timely notice. The liquidation of restricted securities creates potential regulatory exposure and reflects a breakdown in the XXXX 's supervisory controls. This concern was not addressed in your response. XXXX. Inability to reach qualified personnel : During these active risk events, I was unable to reach Banking Associates with the authority to address time-sensitive account matters. I was instead transferred between Virtual Advisors and Financial Advisors who lacked either the authority or the system access to resolve urgent issues. Your letter 's reference to my conversation with XXXX XXXX and the acknowledgment that I " confirmed understanding '' of standard processes does not constitute resolution of this failure. Understanding standard processes is not the same as agreeing that those processes were properly followed in my case. XXXX. Failure to authenticate maintenance call notifications : As I documented in my prior correspondence, including my email to Merrily XXXX ( XXXX ) dated XX/XX/XXXX, upon receiving the first maintenance call notification I immediately contacted Morgan Stanley by XXXX and in writing because the notification had arrived from an email alias I could not verify as an authentic Morgan Stanley communication. For a period of several days, no representative of the XXXX was able to confirm with any certainty that the communication had originated from Morgan Stanley. This directly and materially impaired my ability to respond to the early maintenance calls in a timely manner and reflects a significant failure by the XXXX to ensure the integrity and verifiability of its own client communications. This issue has never been acknowledged or addressed by the XXXX. IV. FAILURE TO RESPOND TO XXXX ESCALATION On XX/XX/XXXX, I escalated these concerns to XXXX XXXX XXXX, Chief Client XXXX, and followed up thereafter. I received no response not even an acknowledgment of receipt. While I did not expect XXXX XXXX to personally resolve operational matters, the complete absence of any response from XXXX leadership is deeply concerning and is inconsistent with the standards I would expect from a firm of Morgan Stanley 's standing. V. FORMAL REQUESTS Given the material inaccuracies in the XXXX XXXX XXXXXX/XX/XXXX response and the continued failure to resolve the substantive issues I have raised across multiple communications, I request the following : XXXX. Correction of interest rate error ( within XXXX business days ) : ( a ) Apply the fixed promotional interest rate to the entire borrowed balance, retroactive to the date of borrowing ; ( b ) Credit my account for all excess interest charges resulting from the improper variable-rate application, including the recently assessed {$0.00} charge ; and ( c ) Provide a detailed accounting showing the original incorrect calculations, the corrected calculations, and the resulting credit amount. XXXX. Substantive response to liquidation concerns ( within XXXX business days ) : ( a ) Provide the exact timestamps of the XXXX XXXX XXXX and my deposit on XX/XX/XXXX ; ( b ) Address the liquidation of securities subject to documented trading restrictions and identify what remedial measures will be taken ; and ( c ) Confirm the Firm 's position on whether the liquidated shares will be restored, so that I XXXX determine how to proceed. XXXX. Account resolution and closure terms ( within XXXX business days ) : I believe Morgan Stanley has failed to meet its obligations to me as a client, including with respect to accurate accounting and the proper administration of my account. I request a payoff statement itemized by principal, interest, and fees ; written confirmation that no early termination fees or penalties will be assessed given the circumstances described herein ; and confirmation of a reasonable repayment window during which no additional charges will accrue and no further adverse action will be taken with respect to my pledged securities. XXXX. Formal acknowledgment of the email authentication failure ( within XXXX business days ) : I request written acknowledgment that the XXXX 's maintenance call notifications were sent from an email alias that could not be verified as authentic, that the XXXX 's own representatives were unable to authenticate those communications for a period of several days, and that this failure materially impacted my ability to respond to the early maintenance calls in a timely manner. VI. NEXT STEPS I have given Morgan Stanley ample opportunity to address these matters in good faith. The pattern of non-responsiveness, inaccurate representations, and failure to cure documented errors has left me with diminishing confidence that this dispute can be resolved without outside involvement. I am prepared to escalate these concerns to the appropriate regulatory agencies including the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, and the Financial Industry Regulatory Authority and provide this notice as a matter of professional courtesy, affording the Firm one further opportunity to resolve these matters directly before such filings are made. XXXX. RESPONSE DEADLINES I request : Acknowledgment of receipt of this letter within XXXX business days ; Correction of the interest rate error within XXXX business days ; and Substantive written responses to all outstanding concerns within XXXX business days. Please direct all responses to : XXXX Respectfully, XXXX XXXX XXXX Account XXXX. XXXX XXXX XXXX. XXXX

Company response to consumer: Closed with explanation