Mutual Service Corporation sent a letter, dated August stating that I am required to transfer my account because the representative was no longer affiliated with the firm.
Transferring my account put a tremendous burden on me because I am out of town during the week and had limited time to conduct research. However, I complied with their demand.
Once the transfer was completed, I was shocked to find out that I was assessed a over $50 in fees. Mutual Service Corporation failed to disclose that there would be any transfer fees in the letter they sent to me.
I called Mutual Service in September and spoke with a woman named in the service center. She transferred me to another woman in the trading center. I explained the situation in detail including how it was not my choice to transfer the account, it was an inconvenience, and that Mutual Shares did not disclose that there would be a fee. She put me on hold and discussed with her manager. She came back on the line and told me that there was no way they would refund the fee. She also stated there were many ways to transfer an account and there is no way they could list all those in the letter. I told her that I was not looking for an exhaustive list of methods to transfer. All I was looking for is disclosure that a fee would be charged for a transfer that they were demanding. She kept reiterating that all firms charge transfer fees. She either wouldn't or couldn't transfer me to the manager.
Mutual Service has dug in their heels and are now clinging their right to charge a transfer fees. They claim everyone does it so it is standard practice. Mutual Service does not seem willing to address this issue from a neutral perspective. Does it seem reasonable that a person is forced to move their account and not told up front that there would be a fee to transfer? The lack of disclosure in their letter about a fee is very concerning.
To summarize, I believe they should not have charge a transfer fee for the following reasons:
It was not my choice to transfer my account. Mutual Service demanded that I transfer my account.
The letter from Mutual Service failed to disclose that I would be charged a transfer fee. The letter demanded that I transfer my account and since there was no mention of a fee then any reasonable person can only assume that since the transfer was the choice of Mutual Service then
it should be completed at no charge.
Firms that kick customers out and force them to transfer their accounts should absorb the transfer fee or disclose the fees in advance in written form.
Note: My representative also told me that there should not be a fee for a transfer.
Mutual Service's actions are dishonest and unethical, particularly since they deliberately withheld information related to fees being charged to customers when they are forced to move their accounts.
I reported to the SEC. Mutual Shares replied with a very weak letter and fabricated more lies.
Stay away from Mutual Shares as they do not properly disclose fees. Also, note that they may force you to transfer your accoutn when you least expect it.
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