Consumer complaint received 2025-03-29 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: ROBINHOOD MARKETS INC.
State: NY

Complaint narrative:
Re : Unauthorized Liquidation of Securities & Unfair Practices by Robinhood Financial LLC Account Number : XXXX XXXX Date of Incident : XX/XX/XXXX, XXXX. CHRONOLOGY OF EVENTS & SUMMARY OF COMPLAINT XX/XX/XXXX Deposit Initiated : I initiated a transfer of {$4300.00} from my bank account to Robinhood to purchase XXXX ( XXXX ) shares. Bank records confirm the funds were debited. 

XX/XX/XXXX Robinhood Notifies of Reversal : XX/XX/XXXX, Robinhood alerted me of a deficit due to a deposit reversal, though my bank confirmed the funds were in transit. 

Immediate Action Taken : I emailed Robinhood with bank statements proving the transfer was processed. 

Requested an investigation into the erroneous reversal. 

XX/XX/XXXX Robinhoods Bad-Faith Handling : XXXXXXXX XXXX  : I submitted additional bank proof and requested resolution. 

XXXXXXXX XXXX ( XXXX MINUTES LATER ) : Robinhood closed my case without investigation, instructing me to file a new claima deliberate delay tactic. 

XX/XX/XXXX XXXXXXXX XXXX XXXX Robinhood sent an " Action Required '' email threatening liquidation if I did not cover the deficit the same day. 

XXXXXXXX XXXX : Robinhood forcibly sold XXXX XXXX shares at $ XXXX without my consent. 

Details of the Transaction : Purchased : XXXX XXXX shares at an average price of XXXX ( XXXX ) Forcefully Sold : Without my knowledge or consent at XXXX ( XXXX ) Total Loss : {$1500.00} Robinhood need only cover XXXX. Robinhood made money while I was penalized for bank/Robinhood transfer transaction.

II. LEGAL VIOLATIONS A. FINRA & SEC Violations FINRA Rule XXXX ( Commercial Honor ) Liquidated positions without allowing reasonable time to resolve the deposit dispute, despite my documented efforts. 

FINRA Rule 4311 ( c ) ( Margin Liquidation ) Failed to provide the standard 2-5 business days to meet margin calls.

SEC Regulation T ( 12 CFR 220 ) Broker-dealers must permit a settlement period for deposits. Robinhood ignored this.

B. Consumer Protection Violations ( CFPB ) UDAAP ( Unfair, Deceptive Acts ) Robinhoods instant closure of my case XXXX XXXX and same-day liquidation threat ( XX/XX/XXXX ) constitute unfair practices. 

Breach of Implied Covenant of Good Faith Robinhood knew the deposit was pending but chose to liquidate anyway.

III. LEGAL PRECEDENTS ( WINNING CASES ) XXXX XXXX XXXX XXXX ( XXXX XXXX ) Holding : Broker fined for liquidating positions without allowing reasonable time to resolve deposit issues. 

Parallel : Robinhoods XXXX " investigation '' mirrors Merrills bad faith. 

XXXX XXXX XXXX # XXXX ( XXXX ) Award : {$9200.00} to investor for premature liquidation during a bank dispute. 

Key Quote : " Brokers can not punish customers for bank processing delays. '' Robinhood Class Action ( XXXX, XXXX ) Settlement : $ XXXX paid for identical predatory liquidation practices. 

IV. DEMANDS FOR RELIEF Restitution of XXXX XXXX shares ( market value difference + interest ). 

Expungement of the unauthorized liquidation from my record. 

Regulatory sanctions against Robinhood for : False case closures ( XX/XX/XXXX ). 

Failure to investigate bank documentation. 

V. EVIDENCE Bank Statements ( XXXX XXXX XXXX  ). 

Robinhood Emails ( XXXX XXXX XXXX ). 

Trade Confirmation ( Unauthorized sale, XX/XX/XXXX ). 

VI. CONCLUSION Robinhoods actions reflect a systemic pattern of abuse against retail investors. I urge FINRA, the SEC, and CFPB to : Investigate this case as a priority.

Audit Robinhoods liquidation policies industry-wide.

Company response to consumer: Closed with explanation