Consumer complaint received 2026-03-04 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: MORGAN STANLEY & CO. LLC
State: WA

Complaint narrative:
XX/XX/year>, I deposited a check from a third party, XXXX XXXX XXXX, for {$29000.00}, using the mobile deposit feature on the app for Morgan Stanley Bank ( afterwards referred to as MSB ) into my checking account ending in XXXX. Soon afterwards, I was able to confirm the deposit on the app and received an email confirmation. At this time, there was a hold on the funds. I expected this, since this was a third-party check and a relatively large amount relative to my average daily balance. XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX I noticed that the check was coded NSF and immediately called MSB to confirm. They did confirm that the check had been returned as NSF. HOWEVER, rather than just removing the temporary credit for the amount of the check in my account, they had also debited the account AN ADDITIONAL {$23000.00}, with no explanation. Therefore, my balance, rather than going down to - {$17.00}, was now a negative {$23000.00}, XXXX. I could have easily transferred from another account to cover the correct negative balance of - {$17.00}, however I could not cover the additional {$23000.00}. There was a note on my account online to fund my account to bring it back to a positive status. Summary of above : First the check was deposited, and the funds ( {$29000.00} ) held. Next, on XX/XX/XXXX, rather than deducting the {$29000.00}, MSB debited my account approximately {$52000.00} an additional {$23000.00} more than the NSF check. Over several phone calls on this same morning XXXXXXXX XXXX XXXX XXXX, I was told that it is a mistake and it will wash out when you look at your account tomorrow. In the meantime, I had been in touch with the vendor that wrote the NSF check, XXXX XXXX XXXX. They were extremely apologetic, explained to me what happened, and offered to remedy in any way I desired. I asked them to wire the funds directly into my account and they agreed. They proceeded to send the wire to this same account at MSB, ending in XXXX, for the exact amount of the NSF check ( {$29000.00} ). They confirmed that they sent the wire at XXXX PST. I called Morgan Stanley Bank ( MSB ) again at XXXX PST, and was told that there was no wire received yet. When I saw the wire noted in my account at about XXXX, I noticed that there was still a hold for over {$23000.00} on my account. I called Morgan Stanley bank again at XXXX XXXX ; this time I was told that the hold was because the wire had not been sent in time to make the cut off. I tried to tell them that I saw the wire as deposited in my account online, that wires are not checks, and there is no reason to hold those funds back. I asked again why is there still a hold on this account? This time I was told again that it was because the wire was not sent it time, even though my account should the wired deposit online. This made no sense to me, but I was assured again on this call that the funds would be 100 % available and everything would clear at XXXX EST, ( XXXX PST ). Summary for XX/XX/year> : I requested several times THE REASON FOR THE HOLD AND THE TIMELINE FOR RELEASE. I WAS GIVEN A DIFFERENT ANSWER EACH TIME XX/XX/year> I checked my account at XXXX PST, and saw that there was still a hold for approximately {$23000.00}, AND all my accounts had been frozen, AND the wire that I sent the previous day, from a separate account with a positive balance ( $ XXXX ) had been recalled. I called MSB at XXXX and was told that they did not know. After 20 minutes of discussion I was informed I would have to initiate a 4-way call with the bank that the NSF check was drawn on, the vendor that wrote the check, myself, and MSB. Again, I asked, and explained, that there should be a matching credit and debit for the deposit of the check and then offsetting when it was NSF, for a net of XXXX, so why is there still an additional {$23000.00} hold? I finally got so frustrated that I had to hang up and call back later. When I called back at XXXX, this time I was told that there was no way they could fix it on the front end, and they would have to submit a form ( I do not remember the terminology they used for this form ) and that it could be straightened out in about an hour. The representative also assured me he would follow up with a phone call back to me either way at the end of that hour. I never heard from him. At XXXX, I called MSB again, this time demanding an explanation and resolution. After a 46-minute phone call, I got no explanation and more empty promises, this time telling me yet another reason why the hold was on there, something about the check being NSF. XXXX more time I tried to explain that the NSF check had already been deducted from my balance and asked why there was an additional $ XXXX being held no explanation, just more promised to look into it. During this process the hold on all my other accounts were lifted, but no explanation for any of this has been given yet, and there is still a hold of over {$23000.00} on my account ending XXXX. At XXXX this morning, XX/XX/year>, I CALLED AND FORMALLY DEMANDED THAT THEY PROVIDE TO ME an explanation as to WHY the {$23000.00} plus was being held and WHEN it would be released. The representative just said they did not know and REFUSED TO SUPPLY ANY EXPLANATION OR TIMELINE in writing or verbally. As of this submission, I have yet to receive any indication of why the funds are held or when they will be released.

Company response to consumer: Closed with explanation