Consumer complaint received 2025-12-03 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: ROBINHOOD MARKETS INC.
State: FL

Complaint narrative:
On XX/XX/XXXX, my Robinhood investment account ending in # XXXX, was sent into a margin call of {$61000.00} according to an email received on XX/XX/XXXX at XXXX XXXX. The margin call was expiring on XX/XX/XXXX. 

Because I was in the hospital, I found this email upon being released on XX/XX/XXXX. I contacted Robinhood on XX/XX/XXXX asking them for an extension until XX/XX/XXXX. During the next few days, I began to deposit cash into my account along with my normal weekly dividends I receive from {$20000.00} to {$40000.00}. The total deposited funds which includes cash and dividends paid into the account by XX/XX/XXXX was {$110000.00}. 

Note : The Margin call never occurred because I had initiated adequate deposits. No investments were sold at the close of the day on XX/XX/XXXX or XX/XX/XXXX. 

On XX/XX/XXXX, I logged into my account at around XXXX. No margin call was showing so I was glad everything had been resolved. Then, on this same day at around XXXX XXXX, I received an email that Robinhood had sold XXXX shares of XXXX at around $ XXXX/share, for a total of {$140000.00}. I was never made aware of this and had no opportunity to ask questions how and why, and if there was opportunity to cure any outstanding financial obligations that I was unaware of. 
Keep in mind, the total average cost of each share I paid originally for XXXX is {$21.00}. This means Robinhood negligently for no valid reason, sold off approx. {$250000.00} of a security for {$140000.00}.

After filing a complaint with Robinhood via their Support email, I received an email back from a person named XXXX. XXXX said in an email dated XX/XX/XXXX that my original margin call of {$61000.00} had been satisfied. This is of course due to my {$110000.00} of deposits made to my account. Additionally, he said that on XX/XX/XXXX my account show a continued margin balance of {$48000.00}. Hence the reason for selling the securities on XX/XX/XXXX. 

There is one huge problem with this. As mentioned, I had deposited {$110000.00} plus there was additional {$17000.00} in dividends in progress of being paid on XX/XX/XXXX. If there was no foul play by Robinhood and even though I was never informed of additional margin balance, the total of the entire margin call, per the email of XXXX dated XX/XX/XXXX comes to {$100000.00}. The deposits fully covered the initially notified margin call and the " mysterious '' additional margin balance cited by Robinhood.

Based on this information, why did Robinhood negligently sell off {$140000.00} in assets when there was absolutely no reason or justification to do so based on the deposits made?

There are several FINRA violations Robinhood committed in this entire process.

Today, XX/XX/XXXX, Robinhood sent a " final answer '' email refusing further discussion and is accruing interest on disputed debt which stems from unreasonable and unnecessary investment liquidation ( Potential FINRA Rule 4210 Violation. Because I was worried about continued wrongdoings by Robinhood, I attempted to transfer my entire account to XXXX. In doing so, Robinhood, in its typical law breaking tendencies as shown in the past, informed XXXX that there was a margin balance of around {$50000.00} which is completely faux and manufactured to prevent me from transferring my account. As a result, the XXXX transfer was rejected.

Absolutely disgusting conduct by Robinhood.

Company response to consumer: Closed with explanation