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Author: BGPenhollo Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75381  
Subject: Is complaining worth the hassle - 401K Internet Date: 12/1/1999 12:19 PM
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Company stock (I am still employed by the comapny)within my 401K portfolio has increased 100%. Over the past 6 months, I have been slowly moving assets out of this stock and into Index and Foreign funds.

Last Sunday,I made a transaction over their internet site and received a confirmation number. Early Monday when I went to check the transaction, the transaction had not yet occurred. I didn't expect to see anything until the end of trading Monday or early Tuesday morning. On Tuesday, the site was down for technical reasons, so I called to see what price my stock was sold at.

They had lost the transaction even though I had a confirmation number and my shares had not been sold on Monday. The sale occurred on Tuesday and naturally the stock price dropped Tuesday.

The total trade was worth around $20K and I estimate their error cost me about $170. It was just under a 1% of the trade. Should I complain?

Has anyone ever complained to a brokerage company holding their firm's 401K accounts? Was it worthwhile?
Were there ramifications within the company?

Any suggestions..

BGP
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Author: pauleckler Big funky green star, 20000 posts Top Favorite Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15791 of 75381
Subject: Re: Is complaining worth the hassle - 401K Inter Date: 12/1/1999 12:45 PM
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I have my account at a full service brokerage firm. My experience is they are usually quite willing to make adjustments when they are at fault--usually because they misunderstood an order.

The fine print in most brokerage account agreements provides for resolving disputes--usually by arbitration.

I don't know if my experience extends to discount brokers or not. I suspect that it does.

Realizing that having someone talk to you on the phone about your problem probably costs them $1/minute, and the $$ amount involved is small, I would expect most brokers to take the loss, make the correction, and be done with it easily--just to keep you happy as a customer.

So yes, I would call it to their attention. And I think there will be no consequences to you for doing so.

Best of luck.

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Author: Bobbcat Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 15803 of 75381
Subject: Re: Is complaining worth the hassle - 401K Inter Date: 12/1/1999 6:39 PM
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The total trade was worth around $20K and I estimate their error cost me about $170. It was just under a 1% of the trade. Should I complain?

Has anyone ever complained to a brokerage company holding their firm's 401K accounts? Was it worthwhile?
Were there ramifications within the company?



Ask nice first, get progressively tougher if need be.

The brokerage firm has a fiduciary responsibility to any qualified plan to cover any losses that occur due to their mistake(s).
If there is a gain due to errors, they may not take the gain.
If there are both losses and gains attributable to a single error, they may use any gains to offset losses.

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