BBB Business Review

BBB Accredited Business since 12/03/2012

Retirement Clearinghouse, LLC

Phone: (704) 295-1234Fax: (704) 295-1202View Additional Phone Numbers3545 Whitehall Park Dr. Ste. 400, CharlotteNC 28273View Additional Web Addresses

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BBB Accreditation

A BBB Accredited Business since 12/03/2012

BBB has determined that Retirement Clearinghouse, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public.

BBB accreditation does not mean that the business' products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business' product quality or competency in performing services.

Reason for Rating

BBB rating is based on 13 factors. Get the details about the factors considered.

Factors that raised Retirement Clearinghouse, LLC's rating include:

  • Length of time business has been operating.
  • Complaint volume filed with BBB for business of this size.
  • Response to 30 complaint(s) filed against business.
  • Resolution of complaint(s) filed against business.

Customer Complaints SummaryRead complaint details

30 complaints closed with BBB in last 3 years | 9 closed in last 12 months
Complaint TypeTotal Closed Complaints
Advertising / Sales Issues1
Billing / Collection Issues21
Other1
Problems with Product / Service7
Delivery Issues0
Guarantee / Warranty Issues0
Total Closed Complaints 30

Customer Reviews Summary Read customer reviews

0 Customer Reviews Customer Reviews on Retirement Clearinghouse, LLC

Customer Experience Total Customer Reviews
Positive Experience 0
Neutral Experience 0
Negative Experience 0
Total Customer Reviews 0 Customer Reviews

Complaint Breakdown by ResolutionAbout Complaint Details

Complaint Resolution Log (30)
02/04/2016Problems with Product / Service | Read Complaint Details
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Complaint
False claim of an account with this company.
I have received 6 different mailings from RCH Shareholder Services claiming that I have an account with them which hold shares in something called Reich and Tang FDIC Insured Deposits (symbol RISD). I do not find that symbol on any trading market. I have called the two numbers provided by the company on their website https://www.********/contact-us) and in order to speak to someone they want me to provide the last four digits of my SSN, which I will not do. Therefore I am not able to continue and speak to a real person.
I believe this is a scam and perhaps an effort to hoodwink seniors and/or obtain personal identity information.

Desired Settlement
Cease and desist and shut them down if they are seeking to defraud or otherwise harm investors, especially seniors.

Business Response
I spoke with ************ this morning to discuss his account. The funds in the account are the result of an automatic rollover from the ********************* Profit Sharing Plan in 2011. ************ clarified that he never worked for that company, and that the funds were not his. Retirement Clearinghouse has contacted that former plan record keeper, ***************, to correct the account so that it is no longer in ************'s name.

************ understands the root of the mistake, and expressed satisfaction that Retirement Clearinghouse would rectify the mistake with the company that provided us the account.



05/12/2015Billing / Collection Issues | Read Complaint Details
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Complaint
401k from old employer taken and levied fees in less than a week

requires opt out phone call to prevent large fees, mandatory small fees
Had a 401k with an old employer, they somehow got ahold of my 401k when my old employer was purchased.

I got their welcome letter on the 4/27/15, as soon as they got my money they immediately deducted $31.50 for "Fee Prepayment", then another $3.50 for "Monthly IRA Service Fee"

The only problem is i didn't request any of this, nor was I notified that my account was being transferred.

On their letter it states that if i don't call a special number 888.472.7678 they'll automatically try to place my funds into an IRA for an additional $59

So in retrospect it seems like when a 401k is up for grabs, this company buys them under the auspices of trying to place your 401k for you, but the manner in which it operates is extremely circumspect. Everyone involved in finance knows that the first step is informing the client of changes before they are being made, especially when levying fees.

I did not request this service(s) and in fact have my own banking that allows for 401k. I imagine most people just transfer the funds as soon as they are notified without ever checking to see if fees have been applied, which in turn allows this predatory company to continue their practice of finding/purchasing accounts and dumping fees onto the accounts until they are empty.

Desired Settlement
The original amount they somehow got their hands on is 12,077.61 according to their website.

I would like this number confirmed and transferred to my own 401k with my bank without any additional fees (they state that any transaction is a minimum of $50 so basically they're holding my money hostage now)

Business Response
Our call center Service Manager spoke with Mr. xxxxx on May 4th, and was able to resolve this issue. We agreed to waive the distribution fee and account fee, and Mr. xxxxx is transferring his account to another IRA provider.

We consider this matter resolved and closed.

Consumer Response


02/06/2015Billing / Collection Issues | Read Complaint Details
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Complaint
Charging monthly fees and telling me they would take 50% of my assets if I transfer account to my actual IRA.
I received a statement from RCH Shareholder Services that indicates they acquired a very small IRA of mine from Retirement Clearinghouse. They've been charging $3.50-$4.00 a month - "Monthly IRA Administration Fee." There's now $80 in the account, and when I inquired about transferring it to my actual IRA I was told the transfer fee would be 50% of the amount. Really?

Desired Settlement
I'd like the "Monthyly IRA Administration Fee" refunded and I'd like to transfer the piddling amount I do have in it to my IRA without being charged 50% of the balance for doing so. Thank you.

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), formerly known as RolloverSystems, for the consumer complaint filed by xxxxx, regarding his individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC (formerly known as Rollover Securities, LLC) and RCH Shareholder Services, LLC (formerly known as Rollover Shareholder Services, LLC) is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

Mr. xxxxx was a participant in the AFTRA Health and Retirement Plan ("Plan"). In a letter mailed to Mr. xxxxx in April of 2008, Mr. xxxxx was notified that if he failed to instruct the Plan on how to distribute the mandatory distribution before May 19, 2008, his funds would roll over to an RCH IRA.

Mr. xxxxx failed to provide instruction to the Plan regarding his account and his funds were rolled over to RCH on June 3, 2008. Since that date, RCH has mailed a year end statement each year to Mr. xxxxx (see attached).

Additionally, Mr. xxxxx called RCH on February 17, 2012, requesting information on how to transfer his IRA to an individual IRA he held with another IRA provider, proving that he was well aware of his IRA with RCH.

Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility.

In summary, Mr. xxxxx did not respond to AFTRA's automatic rollover notice, and therefore, his funds were rolled over in compliance with the federal regulations. The service fees was properly assessed to his account.

As a gesture of good will, we are willing to waive the fee to close out his account if he takes action by March 31, 2015.


02/06/2015Billing / Collection Issues | Read Complaint Details
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Complaint
There was a lawsuit to get back money from xxxxx. RCH took admin fees without my consent, Lawsuit didn't have authorization to sign off on admin fee
At no point did RCH contact me to tell me they had money that belonged to me. The money was from a lawsuit settlement and does not fall into 401k funds. RCH administered admin fees without my authorization. The account started with $95.37 and is now -$19.37 in the hole. The admin fees were not noted as they took control of the money. They even had my home phone and never left a message stating they had money that I was owed. Once acct was empty they kept charging fees even though the acct should have been closed at the $0.00. Monthly fee (aprox) $3.50 a month so they knew the acct was empty well before it was -$19.37.

This is a clear scam and an attempt to come back later to say I owe them back fees from not taking care of this. I found this out tonight when I had a statement in the email stating I was in the hole (-$19.37). I called the company and after I finally game them the last 4 of my social he confirmed my home phone. I asked to speak to a manger and the service rep said he would call back before 7:00pm tonight. He didn't. First step is BBB and tomorrow it will be Atty General for bank fraud.

Desired Settlement
$95.37

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), formerly known as RolloverSystems, for the consumer complaint filed by *****************, regarding his individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC (formerly known as Rollover Securities, LLC) and RCH Shareholder Services, LLC (formerly known as Rollover Shareholder Services, LLC) is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

********** was a participant in the ***************************************** ("Plan"), serviced by ******. In a letter dated August 15, 2012 (see attached), ********** was notified that if he failed to instruct the Plan on how to distribute the mandatory distribution before September 21, 2012, his funds would roll over to an RCH IRA.

********** failed to provide instruction to the Plan regarding his account and his funds were rolled over to RCH on October 1, 2012. RCH then sent a Welcome Letter and Transaction Confirmation to ********** (see attached). He was also sent a confirmation notice from ****** on September 26, 2012, notifying him that the Plan had been closed.

Additionally, RCH mailed year end statements to ********** for the years 2012, 2013, and 2014 (see attached).

All mailings were sent to the same address, which ********** confirmed was correct, when he contacted RCH on February 3, 2015.

Fees

RCH is proud to be one of the lowest fee service providers in the industry. RCH clearly states its fees in Participant communications. **********'s August 15, 2012 letter has a full disclosure of the IRA fees if the funds rolled over to RCH. RCH does not scale its fees based on account balance but rather charges a flat fee across the board.

Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility.

In summary, ********** did not respond to ******'s automatic rollover notice, and therefore, his funds were rolled over in compliance with the federal regulations. The service fees was properly assessed to his account, and will not be waived or refunded. Please note that ********** has a zero balance and does not owe RCH any additional fees.


10/22/2014Billing / Collection Issues | Read Complaint Details
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Complaint
Account was transferred to this company without my consent and the company has charged outrageous charges for services that I did not agree to.
I used to work for a company that had a 401K group match plan with xxxxx. Unfortunately due to the recession my account kept going below the required amount necessary to continue with the group following my resignation from the company. Eventually they sold my account to someone else.

I found out yesterday after spending the day trying to track it down where it landed which was with rollover systems (Retirement Clearinghouse) I contacted to discuss having my account rolled over to my new IRA account that I recently set up. I began the paperwork process and found out that a statement from the company was necessary to submit the request. Unfortunately I did not have one due to never receiving any information from Retirement Clearinghouse despite having the same address for several years.

I contacted them to request this information where I was told that I could log in and get the information quicker vs waiting for a statement to be processed. The representative provided me with the information. logged into the account and realized that a lot of money was missing from my IRA compared to when I last remember receiving statements. I notice several monthly and annual fees. Additionally the rep stated that there was a $50 dollar fee to transfer MY OWN MONEY !(from a company that I never agreed to nor consented to policies)

I am a little concerned about my account. My account was involuntarily transferred to them from xxxxx at the end of 2012. Since my account has been in their possession, I have been charged several monthly fees, yearly fees ect. Additionally, changes in fees have been applied without my consent or without even notifying me. Since in their possession, I have not ever been notified of anything about my account including any kind of quarterly statements etc.. This is very concerning. I recently set out to find my account which took an entire day to locate where it was (occurred on 10/6/14)


I updated my contact information with the representative but my question is why were they not aware of my information? This is concerning because xxxxx would send me quarterly statements indicating that they had my address. Information about my account should have been provided to me at the same address.

Additionally, It appears as if all this company does is take advantage of individuals who do not know their retirement account is here, by continuously running down the account with fees and charges. This is stealing!!!


I looked at my statements for over the past two years (today because I never received any) and I would be lucky if my money was invested and made 12 cents per quarter. So my question is .. what exactly is the point of having an account invested with retirement clearinghouse?

The even bigger concern is that I now have to pay $50 to have my account rolled over somewhere else. So what you are saying is I have to pay to take my money somewhere else. Again stealing from the hard working people.


Legally you can not invest my money and/or charge me fees If I have not consented to this. Also they cant raise fees if I have not been notified of this change.

I am concerned that Retirement Clearinghouse takes advantage of hard working people by stealing their retirement money b/c they people are not aware that their account is in the possession of this company. If I never would have found this account and realized the situation, Retirement Clearinghouse would have ran my account down with fees and charges until it was nothing!!!!!

This is not what 401K retirement accounts are for they are for saving for retirement not to pay a company to pretend like they are investing it to make money for retirement.


I did not receive $50 for having my account transferred with them and therefore I should not have to pay to remove my account. I have never signed any kind of waiver agreeing to these policies.


Desired Settlement
I would like all the money taken from my account refunded. I have not agreed to these practices nor have I consented to any policies. I have never received in two years any correspondence from this company regarding my account or any fees. I was aware that my account was moved but not aware of where it landed. In addition the fees were even increased without myself being notified. This company is stealing money from hard working people who are unaware that their IRA accounts have been transferred to this company. This company takes advantage of these people and are slowly charging excessive fees in order to dwindle down these accounts because people are not aware where they are. The previous company had my correct address on file as I was receiving regular quarterly statements. There is not excuse as to why I have never been contacted by this company about my account.

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), formerly known as RolloverSystems, for the consumer complaint filed by xxxxx, regarding her individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC (formerly known as Rollover Securities, LLC) and RCH Shareholder Services, LLC (formerly known as Rollover Shareholder Services, LLC) is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within sixty (60) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

Ms. xxxxx was a participant in the xxxxx 401(k) Plan ("Plan"), service by xxxxx, offered through her former employer, xxxxx. In this particular arrangement, xxxxx Plan Services and her former employer handled all communication prior to the automatic rollover. RCH simply received Ms. xxxxx account on July 20, 2012, and invested the funds in the Federated Automated Cash Management Trust Class R fund at the direction of her former employer.

RCH then sent a Welcome Letter and Transaction Confirmation to Ms. xxxxx on July 24, 2012 (see attached). RCH then sent Ms. xxxxx her 2012 year end statement in January of 2013. Both of these mailings were sent to the address Ms. xxxxx currently has on file with RCH. Additionally, xxxxx Services would have sent out a confirmation and annual statement showing that her 401(k) was closed and transferred to RCH.

As part of our effort to constantly ensure we stay connected with our customers, we do an annual address validation, utilizing several third party resources to confirm that we have the right address. When we executed this search in March of 2013, we were returned an address is xxxxx, PA. We sent an address confirmation to this new address and to the address in xxxxx, NC confirming the change. Since we did not hear back, we assumed this was the correct address.

As a gesture of good will, we are willing to refund Ms. xxxxx her fees from April of 2013 through September of 2014, which totals $72. Additionally, we would be glad to waive her $50 distribution fee, if processed before November 15, 2014.


Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility.


1. Defined in 29 CFR 2550.404a-2. The Code of Federal Regulations, 29 CFR 2550.404a-2 provides a plan sponsor a safe harbor to automatically rollover a terminated employees funds when the account is below $5000. However, prior to the automatic rollover, the plan sponsor must provide the employee notice of the rollover.
2. Mandatory distribution is defined in the Internal Revenue Code of 1986, as amended.



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04/26/2016Billing / Collection Issues | Read Complaint Details
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Complaint
No notice of account
I never got notice of my account with this company. I did receive a letter from my old employer saying they transferred my account to this company. But, I never got any information from RCH.

I called them today to find out about the account, a lady on the phone walked me through on how to login to see the account in more detail.

She then told me about fees and a redemption fee ($50) to transfer out to another IRA account.

My balance is below ($100), I am wanting to place this account with my banks IRA account, but the fees are very high when I did not elect for this account to be placed with this company.

Desired Settlement
I would like the redemption fee waived so I can transfer my account to my banks IRA account.

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), for the consumer complaint filed by xxxxx, regarding the distribution of his HCA 401(k) Plan.

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC and RCH Shareholder Services, LLC is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

Mr. xxxxx was mailed a notification letter on December 3, 2015 (attached). Since RCH did not hear from Mr. xxxxx prior to the deadline of February 8, 2016, his funds were moved out of the Plan and into a safe harbor IRA with RCH. We have attempted to reach out to Mr. xxxxx by phone and email several times to discuss the account closing fee, but have not been able to reach him.

Mr. xxxxx can email the IRA Transfer paperwork to the following address:

RCH Shareholder Services
3545 Whitehall Park Dr.
Suite 400
Charlotte, NC 28273

We will process the IRA transfer and waive the distribution fee as a courtesy to Mr. xxxxx.


02/29/2016Problems with Product / Service | Read Complaint Details
X

Complaint
Received letter in February 2016 from RCH Shareholder Services that I had a Conduit IRA account with them with a $0 balance.
I received letter in February 2016 from RCH Shareholder Services that I had a Conduit IRA account with them with a $0 balance. The account number that was assigned was #XXXXXXXXXXXXXXXXXXXX. This is the first notification from this company that I had any balance with them. The year end statement showed that the opening balance as of 1/12/2015 was $19.16. Then, starting 1/12/2015 a $4.00 Monthly IRA Administration Fee was deducted each month until 5/26/2015 when the $19.16 opening balance was depleted.

I called RCH Shareholder Services on 2/17/16 and spoke to "****" who informed me that his company was not required to notify me of the balance, it was the previous employers responsibility to notify me. Since I did not contact RCH within 60 days, they were free to manage the money as they saw fit. He did tell me that RCH only sends out statements once a year, right after the first of the year. If they recieved this money for my benefit, why aren't they required to notify me? Why wasn't the money at least put into a savings account instead of slowly depleting the account to $0.00?

The $19.16 amount is not the issue, it is the principal of the matter that is the issue. I did not know that RCH was given $19.16 for my benefit and that RCH is apparently allowed the basically keep this money and add to their bottom line.

My question is how many people, who may receive significantly higher sums of money than I did, know that this money is there?

Desired Settlement
I would like to receive the $19.16 to either donate to charity or support a local small business of my choice.

Business Response


Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), for the consumer complaint filed by *****************, regarding his individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC and RCH Shareholder Services, LLC is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

Daily Access provided RCH with **************'s records on November 7, 2013. ************** was a participant in the ************************* 401(k) Plan ("Plan"), serviced by Daily Access Corporation. The Plan hired RCH to receive all accounts under $5,000 and place them in safe harbor IRA's.

************** was mailed a notification letter on November 11, 2013 to the last known address provided by his former employer. Since RCH and Daily Access did not hear from ************** prior to the deadline of December 27, 2013, his funds were moved out of the Plan and into a safe harbor IRA with RCH. Once that account was established with RCH, we were notified by the NCOA that his last known address with his former employer was no longer a valid address. Utilizing Experian, we were able to determine that ************** might have a more current address, and then updated our records.

RCH then sent a change of address notice to his new address, as well as his 2014 and 2015 year end statements, giving ************** ample notice that he had an IRA with RCH.

The account owner is solely responsible for updating his/her address with all 401(k) record keepers, former employers, and financial service providers. RCH conducts an annual address search for each customer in accordance with SEC requirements. However, the ultimate responsibility for ensuring addresses are current is the customer.

In summary, **************'s 401(k) was rolled over to RCH in compliance with the federal regulations. The service fees were properly assessed to his account, and will not be waived or refunded.

02/15/2016Problems with Product / Service | Read Complaint Details
X

Complaint
Bad business practices, exorbitant fees and unauthorized siphoning of funds. Preying on the ignorance of unknowing clients.
After moving back from Europe after 10 years and no longer residing at the address where their mailings were sent, I decided to forward all of my previous US addresses to my new US address before the end of 2015, just in case. Then receiving a forwarded letter from RCH, I called them and found out that my old Nortel 401K (originally worth over $16k) from a class action suite had been rolled over to them. My original balance from that suite, rolled over to them, was approximately $250. Come to find out that RCH had been holding it, and charging me 4 dollars a month in administrative fees. So today, my remaining balance is approx $75, and I still have to call back again in another 15 days because "they can't cash out my account until of my address update go through their systems". When I do call back they will deduct approximately 50% of my remaining balance for further fees, then deduct 10% taxes, so finally I will receive approximately $32.
Though this may be all legal and sanctioned, but I find that the business practices and fees of RCH are predatory. In fact they make money by literally taking advantage of peoples hard earned money and then siphoning off little by little that very money. I would have preferred that my original $250 dollars be forfeited to the US government or a charity rather than line the pockets of RCH who do nothing more than exploit and advantage of of the losses of hard working folk.
The BBB should revise their grade of this company downward!

Desired Settlement
Either be socially responsible and not charge exorbitant fees, or reimburse my funds.

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), for the consumer complaint filed by **** *********, regarding his individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC and RCH Shareholder Services, LLC is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

************* was a participant in the ***************************************** ("Plan"), serviced by ******. In a letter dated August 15, 2012, ************* was notified that if he failed to instruct the Plan on how to distribute the mandatory distribution before September 21, 2012, his funds would roll over to an RCH IRA.

************* failed to provide instruction to the Plan regarding his account and his funds were rolled over to RCH on October 1, 2012. RCH then sent a Welcome Letter and Transaction Confirmation to *************. He was also sent a confirmation notice from ****** on September 26, 2012, notifying him that the Plan had been closed.

Additionally, RCH mailed year end statements to ************* for the years 2012, 2013, 2014, and 2015.

RCH was provided an address by ****** for ************* that was his last known address they had on record. As part of our service, RCH searches multiple public data bases each year to ensure we have the best known address for our customer's. ************* did not notify ****** of his new address, and it appears by his complaint that he did not have a valid address to receive mailings when he left the country. It is the responsibility of each individual account owner to notify their record keeper/investment company of any address changes.

Fees

RCH is proud to be one of the lowest fee service providers in the industry. RCH clearly states its fees in Participant communications. *************'s August 15, 2012 letter has a full disclosure of the IRA fees if the funds rolled over to RCH. RCH does not scale its fees based on account balance but rather charges a flat fee across the board.

Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility.

In summary, ************* did not respond to ******'s automatic rollover notice, and therefore, his funds were rolled over in compliance with the federal regulations. The service fees were properly assessed to his account, and will not be waived or refunded.

02/12/2016Billing / Collection Issues | Read Complaint Details
X

Complaint
Money was transferred out of old 401K without authorization or notification.
I received a statement from RCH in Feb 2016, showing the previous year's expenses. This is problematic for a couple of reasons.

1) I had never authorized such a transfer.
2) I had never been notified about such a transfer.
3) I had never even heard of RCH.
4) This apparently happened in October of 2009(!!) and I am just now hearing of it.

They parked the money in an "Automated Cash Management Trust". This account cost me $4 a month in fees. The return? $.01 / mo, for a net loss of $3.99. They claimed it was "protected from the market". Guess what? So is my bank account, and even the crappiest savings account ever wouldn't charge me $48 a year for the privilege of letting them use my money.

Desired Settlement
I would like the balance calculated to what I would have made on the account had it been transferred into my 403b in November of 2009, and that amount transferred into my 403b. I can provide charts to the company if they wish to make the calculation.

Business Response
Thank you for contacting Retirement Clearinghouse, LLC ("RCH"), for the consumer complaint filed by ***** ******, regarding his individual retirement account opened at RCH ("RCH IRA").

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC and RCH Shareholder Services, LLC is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows plan sponsors to automatically rollover a Participant's account to a safe harbor IRA if that account balance is below five thousand dollars, a mandatory distribution . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant.

********** was a participant in the ****************************** 401(k) Profit Sharing Plan & Trust ("Plan"), serviced by *****************************. The Plan hired RCH to receive all accounts under $5,000 and place them in Safe Harbor IRA's.

********** received notice of this transaction and called RCH on August 19, 2009. During this conversation, he verified that we had the correct address on file, which we have used for all mailings. He was initially unaware of why he had money from ******************************. Our representative shared the information provided to us, and ********** said his former employer was likely purchased by ******************************. Our representative then discussed his options, and ********** informed us that he wanted to transfer this IRA to his current employer plan. The RCH representative then informed ********** that he needed to fill out a distribution form, and subsequently emailed it to an email address provided by **********.

Since we never received that form back from **********, we have continued to manage his IRA. In addition to that telephone conversation, RCH has mailed year end statements to ********** for the years 2009, 2010, 2011, 2012, 2013, 2014, and 2015. All these statements were mailed to the address that ********** provided to RCH and to the BBB.


Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility. The default investment options for a Safe Harbor IRA are limited to investment vehicles that do not fluctuate in share price, essentially money market funds or FDIC insured investment programs.

In summary, ********** was fully aware of this account in 2009, and was notified each year with an updated statement. He could have followed up at any time during this period to take action and move his account to a different provide. His account was rolled over to RCH in compliance with the federal regulations. The service fees were properly assessed to his account, and will not be waived or refunded.


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
I have a few problems with their response.

1) There are only assertions, with no actual proof. Certified postal records would be a good start.

2) The alleged 2009 conversation they claim to have received my email address, yet when I talked to them in 2016, the email address they had on file was incorrect. Thus, even if I did contact them in 2009, they never sent me the appropriate forms, nor did they contact me to fix their error, or follow up on what they claim I expressed as my wishes. It would have been a small matter, when the email came back as undeliverable, to notify me of that fact.

3) All of this is poor customer service, from the minimum effort being made to contact me to placing my money into an account that they knew would simply drain money from me without generating anything in return. Calling the IRA a 'safe harbor' is ironic in the extreme, as it gives a negative return, which is the exact opposite of what a safe IRA is supposed to do. I'm forced to wonder how many other customers have idle accounts that don't know that they are with RCH nor what RCH is doing with them.

Final Business Response
Retirement Clearinghouse (RCH) has reviewed *****************'s rebuttal to our initial response. Our position has not changed, as it is clear that ********** was aware that this account was opened for him in 2009, and did not take the necessary steps to move his account to another provider. RCH has sent seven years of statements to **********, giving him more than enough time and notice to follow up on his initial request to receive a form and transfer his account.

RCH will not reimburse ********** for the 7 years of fees charged while record keeping and maintaining his account. Our offer to waive his distribution fee and assist him still stands. He simply needs to call X-XXX-XXX-XXXX and our Representatives will be glad to assist him. We consider this matter closed, and monthly fees will continue to be charged to **********'s account until such time that he closes the account.

10/29/2015Billing / Collection Issues | Read Complaint Details
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Complaint
They are charging outrageous fees for my account that I never agreed to.
Due to a class action lawsuit, the money I won was placed in this company without my request. It was a very small amount of money, but they charge a monthly fee and a withdrawal fee. I had $200 placed in there due to the lawsuit earnings. They charge me $4/month and a $50 withdrawal fee. I would have preferred getting my money direct. I'm not sure how these guys are allowed to take out 25% of the money as normal fees. The money is not invested, therefore I don't make back the monthly fee. At some point the account would literally draw down to 0 (which I'm certain they are hoping). I think the guys who own this company must have worked for the company that screwed me over to begin with.

Desired Settlement
I want the $50 withdrawal fee for my account and my wife's. I requested that on the phone at the time of closure and they wouldn't do it.

Business Response
October 27, 2015


Dear Mr. xxxxx:

At the request of the Better Business Bureau, I would like to address the issues raised in the complaint you filed concerning your individual retirement account ("RCH IRA") held at Retirement Clearinghouse, LLC ("RCH"), formerly RolloverSystems, LLC.

Company Profile

RCH, along with its subsidiaries, RCH Securities, LLC and RCH Shareholder Services, LLC, is an independent provider of rollover services for 401k plan sponsors. Our services assist employers who provide defined contribution plans to their employees in moving terminated employees out of the Plan while protecting the retirement savings ("Participant").

Federal Regulations on Automatic Rollovers

The Internal Revenue Code, as amended by the Economic Growth and Tax Relief Act, allows sponsors of a terminated plan to automatically rollover a Participant's account to a safe harbor IRA . Prior to the rollover, the plan sponsor must provide notice to the Participant that the account will be rolled over to a safe harbor product. The Participant must respond within thirty (30) days of the notice to either transfer the assets to another qualified IRA or new employers plan, or have the plan make a distribution of the funds directly to the Participant. The Code also requires that these funds be moved into an investment that will not fluctuate in value, typically a money market fund or FDIC insured program.

You were a participant in the Enron Corp. Savings Plan ("Plan"). xxxxx, the claims administrator for xxxxx, hired RCH in 2009 to accept all settlements related to the Plan that were not claimed by the plan participant. Information regarding each settlement along with the copies of the notices mailed can be viewed at xxxxx website; http://xxxxx/main.htm

Since you did not provide instruction to the Plan regarding your account, the funds from the xxxxx were rolled over to RCH on July 13, 2012. RCH then sent you Transaction Confirmation inviting you to contact us for assistance (see attached).

This was the second xxxxx settlement RCH received for your benefit. The first was received on July 30, 2009, in the amount of $912.56. That account was closed by you on February 15, 2012.








Violation of Regulations or Laws

RCH and its affiliates adhere to all federal regulations, state laws, and local ordinances. It is not our intent to mislead any participant or customer. As stated above, we provide clear and concise information on the company fees and detailed information is mailed to each participant in a timely manner. Whether or not an account holder actually reads the notice is not our responsibility.


In summary, RCH and xxxxx provided the necessary documentation prior to your funds rolling over to an RCH IRA, as well as sending annual statements for 2012, 2013, and 2014. While we regret your disappointment in how we handled your account, everything we did was within the guidelines we are required to follow

Sincerely,



xxxxx
Chief Compliance Officer

Enclosures


Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Telling me I needed to fill out one of those class action lawsuit forms 10 years ago is not sufficient. While it does not surprise me they are fighting the reimbursement, I hope the bbb can insure they are not allowed to do this to others. All they have done is sited a load of legal xxxxx to say why they are allowed to rip people off. They may in fact be legally allowed to do so. The question is whether something should be done to stop this in the future. These guys have multiple complaints on the BBB and on "the ripoff report". Businesses like this need to be stopped.


Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Im not requesting the monthly fees back, just the $50 closure fee. Please explain how I could have avoided that had I closed it out earlier.

Final Business Response
Retirement Clearinghouse is hired by retirement plan administrators to accept small balance accounts where the account owner takes no action on their account after receiving a notice. Since Mr. xxxxx did not contact xxxxx, they followed their protocol of establishing a xxxxx with Retirement Clearinghouse.
As we do with all accounts in our custody, we sent Mr. xxxxx confirmations and statements to his home address for three years. During this period of time, Mr. xxxxx had full access to his account and could have closed this account and avoided any further fees.
Retirement Clearinghouse provided IRA record keeping services for this account for over three years, and does not agree with Mr. xxxxx allegations of impropriety. Based on the services we have provided to Mr. xxxxx since 2012, we will not be reimbursing any fees.

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Industry Comparison| Chart

Financial Services, Retirement Planning Service

Additional Information

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BBB file opened: 11/18/2002Business started: 01/01/2001
Licensing, Bonding or Registration

This company is in an industry that may require licensing, bonding or registration in order to lawfully do business. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.

These agencies may include:

Insurance Commission, NC
1201 Mail Service Center
Raleigh, NC 27699-1200
(855) 408-1212
http://www.ncdoi.com

BBB records show a license number of 0016669692 for this company, issued by Insurance Commission, NC. Their web address is http://www.ncdoi.com.

BBB records show a license number of 1000219535 for this company, issued by Insurance Commission, NC. Their web address is http://www.ncdoi.com.

Type of Entity

Limited Liability Corporation

Contact Information
Principal: Mr. Spencer Pringle (Executive Vice President)Mr. J. Spencer Williams (President and CEO)
Number of Employees

50

Business Category

Financial Services, Retirement Planning Service

Alternate Business Names
RolloverSystems

Map & Directions

Map & Directions

Address for Retirement Clearinghouse, LLC

3545 Whitehall Park Dr. Ste. 400

Charlotte, NC 28273

To | From

LocationsX

1 Locations

  • 3545 Whitehall Park Dr. Ste. 400 

    Charlotte, NC 28273(704) 248-5837
    Fax: (704) 295-1202

Industry Comparison ChartX

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*Retirement Clearinghouse, LLC is in this range.

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Additional Phone Numbers

  • (704) 248-5837
  • (888) 600-7655
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