According to the Consumer Financial Protection Bureau’s (CFPB) Consumer Complaint Database, the popular investing and trading platform Robinhood Markets, Inc. (“Robinhood”) received fifty-nine (59) consumer complaints so far in 2020, as of the date of writing. Customer complaints against Robinhood in the CFPB database include locked accounts, withdrawal delays, customer service responsiveness, among other issues.
Customer complaints on locked accounts, withdrawal delays, and customer service are nothing new for Robinhood. In the first half of 2020, U.S. consumer protection agencies received more than 400 complaints about the platform, which is about four times that of Robinhood’s main competitors like Schwab and Fidelity. And the problems only continued into October 2020, as Bloomberg reported customer complaints of fraudulent withdrawals and the announcement of criminal targeting of 2,000 Robinhood accounts.
Robinhood is also the subject of multiple lawsuits and regulatory investigations in 2020. In March 2020, Robinhood suffered widespread system outages, which caused significant harm to investors and the filing of a class action lawsuit. Moreover, U.S. regulators, specifically the SEC and Financial Industry Regulatory Authority (FINRA), are investigating Robinhood’s lack of customer response during the outage.
Robinhood Investment Loss Recovery Options – Filing a FINRA Arbitration Claim
Today, most securities fraud and negligence cases are not tried in federal or state court. Instead, they are tried before a panel of arbitrators. The arbitration process is regulated by the Financial Industry Regulatory Authority (FINRA). Mandatory arbitration in front of FINRA trained arbitrators is the result of arbitration provisions placed in almost all brokerage firm customer contracts, including Robinhood. Most customers don’t ever review these clauses before they sign the contract. However, once the contract is signed, the customer is forced to pursue any claims they have in arbitration, not in court.
At The Frankowski Firm, we provide highly skilled representation on behalf of clients seeking redress through the FINRA arbitration process. We have helped clients obtain excellent awards in both simplified and full panel arbitrations. We work with some of the best financial experts in the country to help quantify damages to arbitrators are able to fully grasp the seriousness of the claims we file.
It takes a considerable amount of financial, legal, and practical skills to be successful in FINRA securities arbitration. Many attorneys have not studied and analyzed the nuances of financial securities laws and regulations. To win a securities fraud case before FINRA arbitrators, it is necessary to prepare each case as though it was going to trial. It also helps a great deal if the attorney representing the investor understands what evidence is likely to be admitted and which arguments most arbitrators find persuasive.
Lost Money Investing Through Robinhood – Contact the Frankowski Firm
If you are concerned about losses you suffered while investing through Robinhood, whether through account access, withdrawal issues, security, or other issues, please contact The Frankowski Firm at 888-741-7503 or fill out the contact form to schedule an appointment.