This report is from April: having found this site I would like to warn others.
Having sent a personal check in the amount of $2000.00 to Datek to fund an IRA, they opened and credited this check to my account.
After doing some online trading for several weeks Datek e-mailed me on Saturday afternoon at my business stating that the check had bounced and they were selling my stocks on Monday morning first thing. Well that week end the stock market took a big dive and my stocks were valued at a 651.26 loss and they sold them, before I had a chance to see this e-mail, and wanted me to send them a check for the 651.26.By the way after apporx. 5 days the stocks went back up and beyond my inital investment by 400.00.
I contacted my bank and was notified that my check was never presented for payment. After calling Datek customer service, (ha, ha) several, several, ect, ect times we found out that Chase Manhattan Bank was the one who couldn't read the encoding number on the bottom of the check and refused the honoring of it.
Well Chase Manhatten Bank re-encoded the number on the bottom of my check with the incorrect routing number sending my check to a bank in Arkansas for payment. Of course they didn't honor it either.
Datek customer service promissed me that if I refunded my account with certified funds they would refund my IRA account at the 2000.00 and we would work out the losses I had incurred by the increased value (400.00) in stocks. After I stupidly did so they took there 651.26 and funded my account with the balance. The Customer service manager said that his representitive had no authority to make that deal and they would not honor it. I have all that documented in e-mails and conversations with customer service.
I complained to the SEC, NSDA and although they report basically the same as above they feel Datek or their bank clearing house was not responsible. Well let me tell you that they all sleep together in order to screw the basic individuals.
Datek had my complete information, ie: phone numbers, address and all the requirements for opening this account. But they didn't even try to call or contact me in a way that I could stop this liquidation. Why ask for my personal information if you don't use it to correct a problem of such a immediate nature.
Bob
Salem, Ohio
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