I think there is some misrepresentation of that has occurred and Fidelity’s response. Fidelity employees don’t even know what the red flags are, accounts are being locked and closed for no discernible reasons and the employees are just as confused as the customers. This has nothing to do with large transfers in and out. In fact, the amount does not seem to matter at all according to accounts here on BH, and in this thread.They don't warn you your account might be held for fraud, because the fraud regs are about preventing fraud, not about the customer. They know the red flags when they see it. When would you expect them to notify you? Notifying you would make the fraudsters just do their transfer 1 day outside the window. The algorithm is opaque for a reason.I didn’t say the hold was reasonable or unreasonable — the lack of notice before the hold is what is unacceptable.Disagree. Ach get reversed. Pulling in a large amount and then trying to pull out again is a textbook red flag for fraud. Fidelity hold is reasonableI don’t think the amount really matters. $500k or $5, at no point during the transfer did Fidelity warn about an excessive hold. There was no way to know about Fidelity’s current….issues.. without reading threads here and Reddit. Not exactly the kind of transparency you’d expect from a broker.
This person did an ACH of 500k, then was surprised their money was held.
Don't make huge transfers in and then immediately try to transfer out. Seems obvious to me. All brokers do this, and none of them warn you. I've dealt with many brokers.
Additionally, the holds are public knowledge at this point — why can’t fidelity state that in their terms and before you complete a transfer? It makes zero sense that the excessive hold would be a known secret.
Statistics: Posted by ez_mode — Sun Sep 29, 2024 7:14 pm — Replies 38 — Views 3021