Consumer complaint received 2026-05-01 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Other features, terms, or problems — Problem with rewards from credit card
Company: ROBINHOOD MARKETS INC.
State: VA

Complaint narrative:
I am disputing the abrupt closure of my Robinhood XXXX XXXX account and the subsequent forfeiture of XXXX reward points ( valued at {$590.00} ). My account was closed without notice on XX/XX/XXXX, immediately after I updated my linked bank account information. This update was necessitated by the merger of my financial institution, XXXX XXXX XXXX with XXXX XXXX XXXX ( XXXX ). According to official merger documentation, a full system conversion took place between XX/XX/XXXX and XXXX, XXXX. Following the bank 's instructions to transition products and services to the new XXXX system, I updated my Robinhood credentials to reflect my new XXXX routing and account information. It appears Robinhoods automated security systems flagged this legitimate banking update as suspicious activity, leading to an immediate and total account closure. I contacted Robinhood Support ( Case # XXXX ) to explain the merger and requested that my earned rewards be applied to my remaining balance of {$3800.00}. A representative named XXXX admitted that the points exist but stated that they " can not '' apply them due to " system limitations '' on closed accounts. This is an unfair seizure of earned assets. I have always paid my balance in full and have attempted to maintain my account in good standing. The closure was not limited to my credit card ; Robinhood also closed my XXXX XXXX XXXX XXXX retirement account and my crypto investment account. By closing these accounts without notice or cause, Robinhood has forced the liquidation of my long-term investments under duress. This has disrupted my retirement planning and created potential tax liabilities. I was given only a 30-day window to liquidate my XXXX XXXX XXXX XXXX, forcing me to move these assets to a new brokerage of my choosing ( XXXX ) immediately . Furthermore, I had to move my crypto assets to external storage to protect them. This total termination of my financial relationship, despite my history of maintaining multiple accounts, is an extreme response to a routine and documented banking update. I am seeking a manual credit of the {$590.00} in rewards to my final balance and a full review of this error to prevent any negative credit reporting or tax penalties resulting from this technical failure. Furthermore, Robinhood 's abrupt closure has caused the forfeiture of {$350.00} in earned IRA Match incentives ( {$210.00} base match and {$140.00} Gold match ). Robinhoods terms require maintaining a XXXX membership and holding funds for a specific period to keep these matches. By closing my account involuntarily and without cause, Robinhood has made it impossible for me to meet these timelines, effectively seizing {$350.00} of my retirement assets through their own technical error. I am requesting that these matched funds be honored or credited to me as part of a fair resolution. Because Robinhood is forcing this transfer through an involuntary closure, I am requesting a waiver of the Early IRA Match Removal Fee and the {$100.00} ACATS fee. I should not be penalized financially for a technical error caused by my bank 's merger. I note that I have 3 accounts with Robinhood : Individual Cash Investing, Traditional IRA, and Managed Traditional IRA. Robinhood will likely charge me {$300.00} in ACATS fees. One last thing to note regarding the credit card : I've paid off my balance in full each month,XXXX % of the time. I've had accounts with Robinhood since XX/XX/XXXX. I included credit card statements from XX/XX/XXXX and XX/XX/XXXX, demonstrating that I have incurred no interest in XXXX and, to date, in XXXX. I am in shock, saddened, and frustrated, and it is impacting my ability to focus on my work. In an effort to remain in good standing and act in good faith, I intend to pay the full undisputed portion of my balance ( {$3200.00} ) by the XX/XX/XXXX due date. This will leave only the {$590.00} ( the value of my earned rewards ) as the final remaining balance. I am disputing this portion because Robinhood 's automated closure prevented me from applying my rewards to my balance, and I am requesting a manual credit for this amount.

Company response to consumer: Closed with explanation