Author Topic: Help! Vanguard overcharged me $2,500!  (Read 5590 times)

samburger

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Help! Vanguard overcharged me $2,500!
« on: April 21, 2014, 09:57:44 AM »
I'm hoping your collective wisdom can help me retrieve my lost $2,500.

Here's the situation: I sent a $2,500 check to Vanguard via snail mail* to top off my 2013 contribution to my Roth IRA. The check went through. But on the same day the check went through, my checking account records show another $2,500 charge through Vanguard, this one via electronic transfer. I did not authorize Vanguard to make this purchase.

Neither my nor my wife's accounts show any record of the second transaction. I spoke with a few different reps at Vanguard, and they all verify that the check went through, but they have no record of the $2.5k electronic transfer. They claim they can't do anything and that I need to pursue this through my bank.

So far I've filed a dispute through my bank, but I don't have much confidence that they'll be able to make this go away. It looks like a perfectly normal transaction from the outside--I shoveled $11,000 into Vanguard in 1-3k increments over the last two months.

I'm thinking I need to try to escalate this with Vanguard and see where this goes when I stomp my feet a little. What else can I do? Anyone have any theories about what happened? Should I be treating this as fraud/account theft and not as an error on Vanguard's part? (Does anyone actually buy index funds with stolen money...?!)

*I had to validate my identity via mail, so I was unable to make an electronic transfer before April 15.

Argyle

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Re: Help! Vanguard overcharged me $2,500!
« Reply #1 on: April 21, 2014, 10:13:43 AM »
So your checking account shows that two transfers went through?  Because many checks are just used as information to start an electronic transfer.  So I'm not surprised that one shows up on your statement.  But $5000 total was deducted, when you only meant $2500 to be?


samburger

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Re: Help! Vanguard overcharged me $2,500!
« Reply #2 on: April 21, 2014, 10:21:53 AM »
Yep, two entirely separate transfers. $5,000 was withdrawn, but it should have only been $2,500.

I keep neurotic financial records. I am definitely missing $2,500.

samburger

  • Bristles
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Re: Help! Vanguard overcharged me $2,500!
« Reply #3 on: April 21, 2014, 10:53:38 AM »
I escalated the issue with Vanguard. This was the fourth person I spoke to this morning, and the fourth who said he's never heard of anything like this. Seems right: extensive Googling brought up absolutely nothing even remotely like this.

The good news is that they don't think I'm crazy. They suggested that my bank records should be able to prove that their records are wrong (bank says I've contributed $13,500; Vanguard can see that I've only contributed $11,000), but no promises. I'm waiting to hear back from whatever team will be taking over my issue.

What a thrilling way to spend a Monday morning!

Exflyboy

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Re: Help! Vanguard overcharged me $2,500!
« Reply #4 on: April 21, 2014, 11:28:32 AM »
This will work out just fine.. Just get your bank to cancel the 2500 transfer and all will be good.

I used to travel for a living and there were boatloads of payments made in connection with my job... Twice I had to dispute and both times it was resolved with the utmost care.

Frank

happyfeet

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Re: Help! Vanguard overcharged me $2,500!
« Reply #5 on: April 21, 2014, 11:29:23 AM »
This happened to me also with Vanguard.  I am pretty sure when all said and done only $2500 will come out.  Keep us posted.

samburger

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Re: Help! Vanguard overcharged me $2,500!
« Reply #6 on: April 21, 2014, 12:15:36 PM »
This happened to me also with Vanguard.  I am pretty sure when all said and done only $2500 will come out.  Keep us posted.

I'm glad this has happened to at least one person!

Their resolution team got back to me and I'm just blown away by their customer service. Vanguard is talking about trying to resolve this within a week. TCF is talking about SIX MONTHS! Yeesh.

samburger

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Re: Help! Vanguard overcharged me $2,500!
« Reply #7 on: April 21, 2014, 05:35:17 PM »
And we have a resolution! Within 12 hours, even!

Vanguard found the transaction in their records. It was human error. They're replacing the funds within the next 48 hours, and they offered to reimburse me for any fees I incurred.

Amazing how smoothly these things can go if you keep tight records and advocate for yourself.




2527

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Re: Help! Vanguard overcharged me $2,500!
« Reply #8 on: April 21, 2014, 05:44:22 PM »
I used to work for Vanguard.  The key to any problem is to give the person on the phone a chance to solve it and then elevate it to a supervisor.

FIreDrill

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Re: Help! Vanguard overcharged me $2,500!
« Reply #9 on: April 21, 2014, 06:01:50 PM »
And we have a resolution! Within 12 hours, even!

Vanguard found the transaction in their records. It was human error. They're replacing the funds within the next 48 hours, and they offered to reimburse me for any fees I incurred.

Amazing how smoothly these things can go if you keep tight records and advocate for yourself.

That is some amazing customer service.  Got to love being a Vanguard customer! :)