I opened a individual cash account with TD Ameritrade on September 5th, 2008. I agreed to have TD Ameritrade withdraw $10, 000 out of my savings account. I completed everything in the TD Ameritrade account and made a transaction to purchase stock the same day. The order was filled on September 5th.
On September 10, 2008 I received a phone call stating that TD Ameritrade had take it upon themselves to sell my stock. I was told it was due to insufficient funds. The account number that I gave them was correct however the money was in my money market account instead of my savings. My bank made a mistake and deposited my money from the transaction I made over the phone, into the money market instead of my savings account as I requested. I explained to three different people at TD Ameritrade this could have all been avoided if they had called me the first day that they had received a notice that there was insufficient funds. I explained to them that I could provide proof that the funds were the account. I was not lying. I understand they don't know me but the money was there. All I expect from them is that they would have given me the courtesy of a simple phone call to inform me of what happened. I would have resolved it right away. Instead, they waited until after their deadline and then they call me up and explain to me that they sold my stock at a loss and now they are saying I owe them $167.42. A simple phone call even the day of the deadline saying we need the funds in by noon would have been acceptable to me. But not for them. There policy is make the transaction and sell the stock without any authorization or notice of any kind and then after they do this, call the customer up and tell them what took place.
I came home today (Thursday Sept 11th) to have a phone call on my answering machine from Ameritrade to return her phone call. I did return her phone call and she Informed me again that I have an unsecured debt and asking me when I was going to send them their money. I informed her that I was not going to. She proceeded to tell me that she noticed I have other accounts with them and that they would take money from those accounts to repay the debt. Not sure here but I think there is some unethical practices going on here.
It is not my intent to blame them for the funds being in the wrong account. As a professional business I would think that they would call there customer to inform them if there were any issues so they can resolve the situation before they take action. Obviously not.