Have you faced serious issues opening and maintaining your account with Charles Schwab? Did they close your account without legitimate reason? Maybe you tried to add a bank account to your existing IRA but an unprofessional customer service rep made a mistake that transferred money where it shouldn’t have gone. If you feel you’ve no other recourse but to sue Charles Schwab, we can help.
Charles Schwab Security Policies
Charles Schwab is very fast about safeguarding private account information and dealing with fraudulent activity.
However, Consumer Affairs and the Better Business Bureau show us that even a company as large as Charles Schwab forces their customers to deal with a lot of system errors, a lot of automatic responses, and bad customer service.
But what about situations where the Charles Schwab trading system makes a mistake calculating your trade limits or your account balance and you lose money? What do you do when the company closes your account without reason or their customer service is rude and unprofessional, giving you incorrect information? Charles Schwab customers who have been mistreated by the company on the banking or the investment end have options to fight back.
Chances are your contract with Charles Schwab includes an arbitration clause which prevents you from starting a class action lawsuit or even joining an existing class action lawsuit against the brokerage.
Class action lawsuits are when a group of people file the same complaint against a company. You can only file a class action lawsuit against Charles Schwab if there is no arbitration clause specifically listed in your agreement with them.
In most cases your contract prohibits you from a class action lawsuit leaving you the only option of small claims court or consumer arbitration. Small claims court is significantly more complicated and time-consuming so if you do have an issue with Charles Schwab and you have the arbitration clause in your contract, a consumer arbitration solution is much better for you.
Suing Charles Schwab in Small Claims Court
So, if you have a problem that you need fixed, you can try a small claims court. There are some limitations here. Small claims courts in different counties have monetary limits for the amount of damages you can request. This means there’s a minimum and a maximum to how much money you can ask Charles Schwab to give you in order to solve the problem they caused.
Most small claim courts have a minimum of $2,500 and a maximum of $10,000 in damages.
If your claim is less than that amount or more than that amount you will have to use consumer arbitration.
Given that Charles Schwab is a financial institution most people are asking for monetary compensation. If you lost money or you were overcharged or you missed out on the potential to make a lot of money on an investment because of a system error, you might want that money back. This is called a monetary settlement. If you want anything other than money, it’s an equitable settlement and most small claims courts only handle monetary settlements.
If you are seeking equitable only or equitable and monetary compensation you will likely have to use consumer arbitration. Check with your local County Clerk to see what your county regulations are for small claims court.
This can be a very time-consuming process, taking months to complete because you are working through the court system. However it is faster and simpler than a traditional lawsuit and you could get compensation in exchange for dropping the claim early.
Steps to Sue Charles Schwab with Small Claims Court
Every state and some counties within the state have very similar requirements but you will need to check with your local courthouse to make sure you know exactly what is required of you.:
CHARLES SCHWAB & CO., INC.
THE CORPORATION TRUST COMPANY
CORPORATION TRUST CENTER 1209 ORANGE ST
WILMINGTON, DE 19801*
*Note: The address you should use will be listed in your individual subscriber agreement.
Use Consumer Arbitration
If you are unable to use small claims court because the amount falls outside of the accepted limits, or this simply seems too time-consuming and too difficult, you can always use a consumer arbitration process to simplify the resolution of your claim.
This is a process that brings with it the chance of getting an early settlement. A lot of big companies like Charles Schwab will settle as soon as the arbitration process has been initiated so you might end up with a solution to your problem a lot sooner.
Steps to File a Claim Against Charles Schwab with Consumer Arbitration
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