Friday, November 26, 2010

Update on the Scottrade Fiasco

Just updating those who emailed about the ongoing situation with Scottrade.   I talked directly to someone in their compliance department this morning, trying to find out what exactly happened and what they would do to resolve the situation.  The first response I received was that the person on the phone will need to do a little research and that he will call me back.   Fine - that seemed perfectly reasonable.

When I received a phone call back, all the person could tell me was that there was someone who was assigned to the case and that I will be receiving Scottrade's "official response" via U.S. mail next week.  He said he could not answer any other questions in relation to the case because someone else was handling it.

I didn't have much of a problem with this response overall - OK, I understand someone is working on the case and you (the person on the phone) really doesn't have any information.  Fine - although I will point out that in the original email, they stated that I would receive a formal written response via U.S. mail in seven to ten business days.   Today will be the thirteenth business day and if I get it late next week, we will be going on sixteen-seventeen business days.   I don't know how that is acceptable.

I ended my conversation by asking this simple question: Does Scottrade have an official policy for letting customers know when a trade is reversed?  He first gave me some crap about how each trade is different and how they let the branches know, and then the branches let the customers know (which I now personally know is not true) and he doesn't know for sure how long this takes.   I pressed him again and repeated the original question, "Does Scottrade have an official company policy for letting customers know when a trade is reversed?"  He could not give me an answer.

If you are a Scottrade customer, this would worry me.   I am unfortunately still a Scottrade customer until I figure out what to do from here, so it worries me immensely.   That they can reverse a trade and then not immediately contact the customer via email or phone is extremely worrisome - such that I wouldn't want to put any money at risk until I knew there was an official policy.  I never even fathomed something like this could happen until it happened to me.  Maybe I was naive - I don't know.   I'm done trading until this gets worked out - at least if I am in cash, I know they can't do anything to my account.  Right now, that's the only safety measure I guess I have.

Thanks for the emails and comments - I'll keep those of you interested up to date as this progresses.   Those that don't care - I apologize for the rant, but let's be honest, this week has been nothing but chop and from a swing-trading perspective, very difficult to trade.   Take care and enjoy the long weekend.

4 comments:

Anonymous said...

Not to make light of your predicament but it sounds like a gummint operation to me..

Think tsa and scan-groping..
One clown act after another!!

Scottrade said...

ChartSwingTrader,

I understand you are frustrated and I want to let you know that you will be hearing from our Compliance department shortly regarding this matter. I have passed along all of your Twitter and blog feedback so they fully understand your frustrations. We appreciate your patience.

Sincerely,

Jessica B
Social Media Specialist, Scottrade Inc.

Anonymous said...

Hi Mac,

I also have my regular margin and family's IRA accounts at Scottrade. From time to time I am noticing some strange executions. I don't have a time right now to look into my records and provide the numbers, and those executions did not make a big differences to me, but the point is that I never trusted Scottrade completely.

Please let us know what broker will you choose.

Thanks

Mac said...

Jessica,

I was originally sent an email back to check my account for a message on November 8. All that message said was I would receive a formal response from Scottrade via U.S. mail in "7 to 10 business days." We're now on the 14th business day and still nothing. Maybe it's the Post Office's fault, right?