Consumer complaint received 2026-04-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: CHARLES SCHWAB CORPORATION, THE
State: TN

Complaint narrative:
I am writing to file a formal complaint against Charles Schwab XXXX regarding the unauthorized suspension of my checking account and the unlawful withholding of approximately {$2000.00} in deposited funds. BACKGROUND In late XX/XX/year>, I opened a joint checking account with Charles Schwab XXXX. The account was fully approved and operational. Over the following weeks, I engaged in normal banking activities, including : - Receiving direct deposit payments from two employers into the account - Writing checks that were processed and cleared - Receiving and activating debit cards for both account holders- Sending a wire transfer from the account to my XXXX XXXX XXXX account At no point during or after account opening was I asked to provide additional identity verification. Schwab accepted my deposits, issued debit cards, processed checks, and facilitated a wire transfer all of which require identity verification under federal banking regulations. THE INCIDENT On or about XX/XX/year>, I attempted to send a XXXX transfer through the Schwab platform. The transfer failed. I contacted Schwab customer support through their website, and was told the failure was due to an internal problem with XXXX not an issue on my end. Shortly after, my entire account was locked without warning. I was unable to log in online, and both debit cards associated with the account were deactivated. I received no prior written notice no letter, no email, no phone call informing me of any issue with my account or giving me an opportunity to address any concerns before access was revoked. When I called Schwab customer service, I spent approximately XXXX XXXX and XXXX XXXX on the phone being transferred between representatives, placed on hold repeatedly, and given conflicting information. I was told : - My account had been flagged for identity verification due to the failed XXXX transfer and unspecified " other things '' that the representative refused to disclose. - I was required to provide a notarized Letter of Authorization a form I was expected to create myself, as Schwab does not provide one. - I was required to provide a government-issued photo ID ( front and back ), verification of deposits ( check stubs ), and a current mortgage statement or utility bill as proof of address. - I was initially told to visit a Schwab branch in person. The nearest branch is in XXXX, Tennessee approximately XXXX XXXX from my home. The representative later told me I couldnt use this branch because it is independent. My own research revealed the nearest company branch is in XXXX, Tennessee, over XXXX XXXX from my home. When I explained this was not feasible, I was told I could use an online notary instead. - The supervisor could not confirm when my account would be restored after I submitted the required documents. She stated only that the matter would be " escalated '' and a manager would follow up the next day. HARM AND IMPACT As a result of Schwab 's actions, I have suffered the following harm : - I am unable to access approximately {$2000.00} of my own money, which includes wages deposited by my employers. - I am unable to pay contractors I have hired for essential services related to my upcoming move. - I am XXXX and live in rural Tennessee with limited transportation. Traveling to the nearest Schwab branch or a notary public is not feasible. - I lost an hour and a half of productive work time during the phone call, during which I had urgent professional deadlines. - I experienced significant emotional distress, including chest, as a direct result of being told I could not access my own money. - I am in the process of relocating internationally and closing on the sale of my home. This account disruption has jeopardized my ability to manage my finances during this critical transition. SPECIFIC COMPLAINTS 1. Schwab accepted deposits, processed checks, issued debit cards, and facilitated a wire transfer before requiring identity verification. If verification was required, it should have been completed at account opening before funds were deposited, not after. 2. Schwab locked my account without any prior written notice. I received no letter, email, or other communication informing me of a pending issue or giving me an opportunity to resolve it before my access was revoked. 3. Schwab is requiring me to create my own notarized verification form rather than providing a standardized document. This is an unreasonable burden on a consumer and suggests a lack of proper procedures. 4. Schwab could not provide a timeline for restoring my access to my own funds, even after I comply with their verification requirements. 5. Schwab refused to disclose the specific reasons for flagging my account beyond the failed XXXX transfer, citing vague " security '' concerns while simultaneously holding my money hostage. 6. The requirement to visit a branch in person discriminates against consumers in rural areas who do not have reasonable access to a physical branch location. SUPPORTING DOCUMENTATION I am attaching the following evidence in support of this complaint : - Screenshot of Schwab mobile app login error showing account suspension - Screenshot of Schwab website login error requiring identity verification - Payment stubs from employers showing direct deposits to the Schwab account I am prepared to provide additional documentation upon request. I expect to follow up on this complaint once my account access is restored and I can confirm the full extent of the disruption. I am filing this complaint with the Consumer Financial Protection Bureau because I believe Schwab 's conduct violates my rights under federal consumer financial protection laws. A federally insured banking institution should not be permitted to accept deposits, issue debit cards, process checks, and facilitate wire transfers and then, weeks later, lock a consumer out of their own funds without prior notice, without providing a standardized verification process, and without any guaranteed timeline for restoring access. This practice effectively holds consumer funds hostage and causes severe financial and emotional harm.

Company response to consumer: Closed with monetary relief