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Marcus.com locked me out of my account and retains control of my life savings
46 points by vinse on May 27, 2024 | hide | past | favorite | 18 comments
[Message for moderators : it seems like I am in the exact same situation as sherlock_h 6 in this thread : https://news.ycombinator.com/item?id=38135661 but the thread is closed now and sherlock_h 6 did not updated us on how/if the situation eventually resolved. If it is more appropriate, feel free to re-open this old thread and I'll post my message there]

Short version : My Marcus account got locked when I initiated a large withdrawal corresponding to my entire life of savings. I have not been able to access my account since then.

Detailed context : I have had a savings account with Marcus since 2018. I recently moved to France so I needed to empty these accounts and move the funds to France. So I initiated transfers from Marcus to my Interactive Broker account via Direct Deposit (and was planning on using IB for FX conversion and send the money to France).

The transfers got rejected, and I was left with a message to call the support. I called the support and this is where it all started. They proceeded with regular checks to verify my identity (last 4 digits of social security, date of birth, …). As I do not own a US phone anymore, the number they have on file is that of a friend, and I was calling from my French number. After a few minutes on hold, they said that they were not able to verify my identity as the name associated with the phone number they had on file did not tie to my name. They were also not able to verify my identity with my passport nor with my New York driving license. I spoke with 3 different person, none of them was able to propose an alternative way of verifying my identity. I hang up and realized shortly after that my account got locked.

A few days later, I called them through the US phone number they have on file (having my friend calling on speaker), I answered all the security questions, and I was calling from the exact phone number they have on file, but again, they said they were not able to verify my identity. They said my case was under review and that someone would contact me in the next 2 days. Nothing happens over the next week, so I call again, go through the exact same conversations, with various contradictory and ridiculous answers from Marcus agents. In short, there is nothing they can do, no way to verify my identity, and that I should just wait for someone to contact me.

It's been 20 days, when I call they still say my case is under review and they retain control on my lifelong savings. It feels like a nightmare...

I read the suggestions in this other thread https://news.ycombinator.com/item?id=38135661 and opened a complaint with the Consumer Financial Protection Bureau 10 days ago, but I still haven't received an answer. I am planning on opening other complaints with the FDIC and Utah Department of Financial Institutions (as Marcus is headquartered in Utah).

Has anyone been on this situation and actually got it resolved?



> I am planning on opening other complaints with the FDIC and Utah Department of Financial Institutions (as Marcus is headquartered in Utah)

In which state were you last based? Do you urgently need these funds in the next month? Did you ever buy any investment products through Marcus?

Given what you've said: file an online complaint with New York's Department of Financial Services [1] and the Office of the Comptroller of the Currency [2]. (You have no nexus with Utah. New York's DFS has teeth. I am assuming you lived in New York.)

Send a written letter (ideally with receipt confirmation) to Goldman Sachs [3]. Copy the DFS (yes, again), the FDIC [4], and Federal Reserve [5]. (No receipt confirmation needed for these.) Stick to the facts--the less emotion the better. Reference your last account statement, the withdrawal request (date and time, amount, confirmation number(s), et cetera), the dates and times you called and any other communications you made with Goldman, attempted or connected, and include a copy of your New York State ID. At the bottom of your letter, below the signature line, make note of everyone copied as you would in any formal letter.

Given Marcus's erratic behaviour and lack of communication unbecoming of a bank, there is a small chance there is cyber crime involved. Notify the FBI [6]. If you do, note it in your letter to Goldman.

[1] https://www.dfs.ny.gov/complaint

[2] https://www.helpwithmybank.gov/file-a-complaint/index-file-a...

[3] https://www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPAN...

[4] https://www.fdic.gov/resources/consumers/consumer-assistance...

[5] https://www.federalreserveconsumerhelp.gov/about/after-i-sub...

[6] https://www.ic3.gov


Thank you very much for taking the time to respond.

I was last based in NY.

Yes, I do need these funds urgently (I am legally bound to buy an apartment for which the down payment is due in a couple of weeks, and if the transaction falls through I might be liable for 10% of the apartment price...)

I did buy a CD in the past (when I was still in the US) and early terminated it.

I doesn't seem like my case falls within the scope of a complaint I can raise to the FBI, but I will do all your other suggestions, thanks a lot for these.

Would it help to get the letter notarized?

Do you think I should also get help from a lawyer?


> Would it help to get the letter notarized?

Possibly. Would not bother if it delays by more than a few days, though.

> Do you think I should also get help from a lawyer?

Yes.


> As I do not own a US phone anymore, the number they have on file is that of a friend, and I was calling from my French number.

They tend to have zero tolerance policies for stuff like this so it is no surprise that they locked your account. It's terrible that they have no alternative identity verification protocols in place. Offer to verify your identity through a notary.


Yes, looking back this was a mistake, but I would never have imagined that it would go this bad...

At some point, one guy did mention something about having my identify verified through a notary if I could back to the US, but he could not guarantee this would work. Also, I read a bunch of other complaints saying that trying this was just way for them to keep you quiet for some time. But I'll keep this in mind as a last resort, thanks


Do you have a US embassy or consulate nearby? If so, they are able to provide identity proofing services.

https://travel.state.gov/content/travel/en/records-and-authe...


A notary should be able to verify your identity in France as well. That's one of their main services. I think this is one of those situations where you have to send them legalise for them to feel reassured.


Hi,

It's marked in the thread you referenced that Marcus only excepts US based customers.

I assume it is best to close your account with them and let them transfer the remaining balance to your European bank.

Not sure how you can achieve that now, since you probably lied/faked to them before that you were still living in the USA, and your account is flagged now.

I also don't believe filing will complaints will help, since you seem to be at fault here, and they have to lock your account for compliance and security reasons.

When you unlock your account, I strongly also suggest that you use your local bank to exchange the currency (or Marcus and make a € transfer). IB currency exchange is meant for trading purposes, not for exchanging currencies:

See here: https://www.reddit.com/r/interactivebrokers/comments/ywj5hw/...

What do you think will happen when a transfer in $ comes into a newly opened account, you convert it to €, and then cash out to a European € account. All alarm flags will probably go off, as this is classic money laundering. I would definitely ask their ok in advance and provide them documentation on where the money comes from, before trying to exchange money through their platform.

Depending on how large your transfer is, any european bank will flag the transfer and you have to provide proof of the source of wealth. It's best to provide that documentation beforehand, because otherwise your funds will be blocked for a few days too before you can access them.

Also, in case you have signed a "compromis de vente" without a suspension clause (e.g. that the contract is void if the bank doesn't finance the acquisition, or something similar), then yes you are on the hook for the 10% in case you don't go to the notary in time to buy the house/appartment.

Good luck!


This is alarming. I am life saving with Goldman Sachs too. Should I put money somewhere else now?


If you’re emigrating from the United States, you should probably find and use a bank that has a business model that caters to that scenario.

There’s a variety of fraud, tax and money laundering scenarios that probably flagged the OP as a risk.


> There’s a variety of fraud, tax and money laundering scenarios that probably flagged the OP as a risk.

You are absolutely right. Moreover, if someone is flagged as such a risk, it is illegal for anyone from the bank to tell that person that they've been flagged. So the OP will never find out exactly why they've been locked out. It's unfortunate, but Marcus is small, and they don't have the experience with customer service as well as experience with various types of fraud that a bank like Chase or Wells Fargo has. I guess that's the downside that partly explains their higher savings rates.


> If you’re emigrating from the United States, you should probably find and use a bank that has a business model that caters to that scenario.

And generally try to be proactive- talk to them before you do anything, understand what is needed, provide supporting document and try to get things pre-approved as much as possible.


Never put all your eggs in ine basket.

I have 3 bank/credit union accounts and my wife has one precisely because banks flake in us every so often.

Never trust someone whose home address you do not have memorized with more money than you can stand to lose.


I can't be the only one curious - How much is locked up?


What would entire life of savings be in your case?


$3250 i have NOT been fiscally responsible


What billion dollar company pays you less than you can spend after work? =D


I had my Robinhood account locked for nearly a month for a simple transfer. Horrible customer service and overall a clown show.

Lesson learned - use a professional brokerage like IBKR, Schwab, etc.




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