FundRobot » Funded » Can brokerage issue stop payment on check w/o your authorization?

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Old   #1 (permalink)
 
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Default can brokerage issue stop payment on check w/o your authorization

Long story short, I opened an account at the worst brokerage firm (Schwab) and decided enough is enough. I wrote a check for the full cash amount to a reputable brokerage firm. I found out today that the check bounced because someone at Schwab put a stop payment on it. I never authorized this stop payment, and my account has sufficient funds for the amount on the check.



Isn't this illegal and grounds for a lawsuit?
JohnyZone is offline   Reply With Quote
Old   #2 (permalink)
 
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Default can brokerage issue stop payment on check w/o your authorization

This is not a stop payment. They can put a hold on the account as long as they have some valid reason. It may be that you have a small interest payment in the account, so there's a little more in the account than you knew, and the check is reducing the balance below whatever the minimum requirement is. They may also require a specific instruction to close the account, not just a check withdrawal. Don't assume that they're in the wrong. I doubt that your account is large enough for them to be concerned about.
TodayIBUY is offline   Reply With Quote
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Old   #3 (permalink)
 
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Default can brokerage issue stop payment on check w/o your authorization

I would call them and ask them to stop the hold. I know under Federal Law they can hold the check for 7 days. Then must release it and pay.
TheGreat33 is offline   Reply With Quote
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