As more news about complaints and lawsuits against Robinhood are being reported, frustrated customers showed up at the fintech’s Menlo Park office.
Agitated customers who want to close their account but were barred from doing so because they’ve been locked out of their Robinhood account. Since the fintech’s customer service support has not been responding to their emails, about 15 different Robinhood account holders arrived at the nondescript headquarter, looking to speak in person with a representative. However, security guards at the door were apparently under instructions not to let them in and instead gave the complainants forms to fill up.
The local police were called on to help the security guards, as some angered and frustrated customers were already acting in fits of rage; kicking and pounding on the building. According to police reports, one threw his t shirt at a security guard, while another was said to have hurled dog feces at the front door. Still, another customer vented his anger on a statue in the property by sawing the sculpture.
In recent weeks, over two dozen users of Robinhood’s trading app have filed lawsuits against the company. The most recent was filed by the parents of a college student named Alex Kearns, who committed suicide after Robinhood sent collection notices, instructing the 20-year old to pay a sum of money he owed after incurring trading losses of more than $730,000.
Clients have been trying to close their account, as the company had recently paid $65 million as civil penalty to the SEC. It was settlement for allegations of unfair trading practices, including that of not giving customers the best options for trade executions.
Most complaints have also become the subject of accusations that the company was more inclined to protect the interest of Wall Street short sellers. To prevent the prices of certain stocks from shooting up, which was against the grain of short selling techniques, Robinhood limits buying activities on some stocks.
The GameStop trading scandal however, was beyond fintech company’s control despite suspending the buying activities for the game retailer’s shares. The people behind the rally to buy the non-performing stock were a group of stock investors who discussed trading strategies at Reddit’s r/WallStreetBets forum.
One Customer Was Able to Withdraw His Money After a CNBC Interview
Rayz Rayl who said he has been using Robinhood’s free trading app for seven years, but since things have been taking a different turn, he wanted to close his account. However, he has been locked out of his account for 10 days, while not receiving any response from customer support.
Rayl told CNBC that he travelled 2,400 miles, from his home in Sellersburg, Indiana just so he could withdraw the remaining $3k in his account; needing the money to pay for his family’s daily living expenses.
After requesting the Robinhood office to comment on the interview, Rayl received notification from Robinhood’s customer service, informing him that he can now a access his account.