Consumer complaint received 2024-10-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CHARLES SCHWAB CORPORATION, THE
State: TX

Complaint narrative:
I have done my banking and trading at Charles Schwab for more than two decades. My checking account was involved in a scam/fraud incident in XXXX. Charles Schwab shut down my account for more than two weeks to investigate the specifics of the fraud against my account. When my account was reopened by Schwab Bank it had a negative balance of approximately - {$4500.00}. 

Because I could not access my Schwab checking account, I opened a new account at XXXX XXXX  to reestablish my checking outside of Schwab. I intended to use the two Social Security deposits made within the two-month look-back period to set up my account at XXXX XXXX. 

Charles Schwab Bank refused to allow me access to my Social Security deposits, as required by law for Federal Benefits deposits made within the two-month lookback period. Banks must protect Federal Benefits deposits made electronically during the two-month lookback period. They refused to do so, saying the deposits were in my account when the fraud occurred. That is not an exception to the law requiring them to protect the Federal Benefits deposits and provide the account owner with unfettered access to those funds. 

Charles Schwab Bank released my XXXX Social Security Administration deposit saying it was not deposited when fraud occurred. Nevertheless, I still can not access my XXXX Social Security funds deposited on XX/XX/XXXX. 

I am XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX. My Social Security deposits are my sole source of income. My current checking account balance is about {$400.00} and is supposed to last until XX/XX/XXXX. That is not doable given my obligations to pay apartment rent, electricity, gasoline, and groceries over the next 25 days. This would not be my circumstance if Schwab Bank was held to their federally required obligations to obey Federal law requiring them to protect my Social Security deposits made electronically within the two-month lookback period and allow the account owner unfettered access to the Federal benefits funds. 

I need help getting access to my Social Security benefit deposited to my Schwab checking account on XX/XX/2024, for {$3100.00}. 

I also encourage regulators to quantify the other Federal benefit deposits to other accounts receiving Federal benefits at their Schwab Bank accounts where those accounts may have been or have been involved in fraud. Based on my experience with Schwab, I imagine the number of depositors affected may be significant. If they ask Schwab to provide access to their Federal benefit deposits they are told " no '' because the funds were deposited when the scam/fraud occurred. That is knowingly blatant disregard of the Federal laws that lay out specifically Schwab 's obligation to protect and provide access to Federal benefit deposits in the owners ' account ( s ). 

I would appreciate a prompt response from you and your agency about this matter. I have few groceries on hand, gasoline is below a quarter of a tank, and I need to pay for my XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

My desired outcome is to allow me prompt access to my XX/XX/2024 Social Security deposit of {$3100.00} so I can move that deposit to my new checking account at XXXX XXXX. These funds enable me to meet my financial obligations for rent, utilities, food, medicines and transportation.

Company response to consumer: Closed with explanation