[Vanguard sends out erroneous "not enough money in settlement fund" notice]

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blackburnian
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Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by blackburnian » Tue Mar 27, 2018 8:18 am

This morning I got an email from Vanguard saying I didn't have enough money in my settlement fund to cover a purchase I had made a couple of days ago. An automatic sell had also been submitted to another money market fund to cover the supposed shortfall. I knew this was a mistake, as I did have enough funds when I made the purchase.

I am on the phone with Vanguard now--they tell me they are having a "system issue" and are trying to fix it.

*Update* Phone representative confirmed that these automatic sell orders are going out to many customers. He couldn't cancel it from his end, but I went into the "pending orders" page and was able to cancel it.
Last edited by blackburnian on Tue Mar 27, 2018 8:30 am, edited 2 times in total.

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samsoes
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Re: Vanguard "system issue" 3/27/18

Post by samsoes » Tue Mar 27, 2018 8:24 am

Switch to Schwab. Life's too short for such nonsense.
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Rowan Oak
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Re: Vanguard "system issue" 3/27/18

Post by Rowan Oak » Tue Mar 27, 2018 8:25 am

I'm getting the same emails.

Concerning to know Vanguard can make such a mistake with something as fundamental as the settlement account balance.

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ReformedSpender
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Re: Vanguard "system issue" 3/27/18

Post by ReformedSpender » Tue Mar 27, 2018 8:29 am

Same here

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Pete12
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Re: Vanguard "system issue" 3/27/18

Post by Pete12 » Tue Mar 27, 2018 8:32 am

+1

Just got off the phone with Vanguard and they told me no action required. Let's hope they don't go and put in any unauthorized transactions in the meantime...

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HueyLD
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Re: Vanguard "system issue" 3/27/18

Post by HueyLD » Tue Mar 27, 2018 8:37 am

Another example that confirms the old saying of "don't put all your eggs in one basket!"

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Re: Vanguard "system issue" 3/27/18

Post by jhfenton » Tue Mar 27, 2018 8:38 am

I just received one of those emails too based on some small ETF purchases on Friday. I sold the exact correct amount of a short-term bond fund to cover them on Friday. The account actually shows a small cash balance available to trade today, because a Vanguard ETF distribution posted this morning.

I have not seen any sign of a sell order. I haven't decided if I'm going to call yet.
Last edited by jhfenton on Tue Mar 27, 2018 8:49 am, edited 1 time in total.

RobertD
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Re: Vanguard "system issue" 3/27/18

Post by RobertD » Tue Mar 27, 2018 8:48 am

I called and just got the same system issue story from my Vanguard rep after getting the email alert "You don't have enough money to pay for a recent trade" on 3 of my accounts.
My account balances on the homepage were completely off also which got my immediate attention for potential fraud but they also confirmed this is part of the issue and the detailed holdings page shows the correct balances still.

Krischi
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Heads-up: Vanguard sending out erroneous notices that not enough money is available to trade

Post by Krischi » Tue Mar 27, 2018 8:49 am

I received an email from Vanguard this morning that not enough money was available to cover a trade in my account, even though the settlement fund had sufficient credits available. The email further stated that I would need to act immediately to cover the trade.

I just talked to a rep, and he advised me that a lot of these notices were sent out in error today, and that they were working on fixing this. No action is needed on your end if you actually did have funds to cover the trade.

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jhfenton
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Re: Vanguard "system issue" 3/27/18

Post by jhfenton » Tue Mar 27, 2018 8:50 am

RobertD wrote:
Tue Mar 27, 2018 8:48 am
I called and just got the same system issue story from my Vanguard rep after getting the email alert "You don't have enough money to pay for a recent trade" on 3 of my accounts.
My account balances on the homepage were completely off also which got my immediate attention for potential fraud but they also confirmed this is part of the issue and the detailed holdings page shows the correct balances still.
I see that on the homepage too now. I'm used to ignoring the home page because it is always a little off.

ShadowRegent
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Re: Vanguard "system issue" 3/27/18

Post by ShadowRegent » Tue Mar 27, 2018 8:51 am

Same thing this morning here. No signs of a forced sell order and the phone rep indicated that it was only a notification issue... but based on elrobin's post it sounds like at least some people are seeing more than a notification.

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Re: Vanguard "system issue" 3/27/18

Post by LOLC2k » Tue Mar 27, 2018 8:55 am

..Geez. When I randomly set up a roth 10 or so years ago, I picked fidelity on a whim. Since coming here I see I lucked out into one of the better ones, though not as good as Vanguard. But apparently Vanguard has security issues, I've only been here a short time and this isn't the first time this has been referenced. I have not had a single SNAFU at Fidelity in all 10 years.

Still, I hope it's resolved, because if I ever want to open a new account somewhere, or roll something over, Vanguard was my number one choice so I wasn't holding everything at Fidelity.

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Re: Vanguard "system issue" 3/27/18

Post by Silk McCue » Tue Mar 27, 2018 9:03 am

LOLC2k wrote:
Tue Mar 27, 2018 8:55 am
..Geez. When I randomly set up a roth 10 or so years ago, I picked fidelity on a whim. Since coming here I see I lucked out into one of the better ones, though not as good as Vanguard. But apparently Vanguard has security issues, I've only been here a short time and this isn't the first time this has been referenced. I have not had a single SNAFU at Fidelity in all 10 years.

Still, I hope it's resolved, because if I ever want to open a new account somewhere, or roll something over, Vanguard was my number one choice so I wasn't holding everything at Fidelity.
Nothing that I see here suggests a security issue. The situation is problematic but not catastrophic. They need to tighten things up.

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by LearningtheRopes » Tue Mar 27, 2018 9:24 am

Same with me, including inaccuracy on home page but accurate on balances page. Was freaked out but some comfort that it seems to be a wide problem for them. Sent a secure message, tried calling three or four times, all times on hold and then call a dropped. Guessing they are inundated.[OT comment removed by moderator prudent]

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by Creeny » Tue Mar 27, 2018 9:30 am

Good to hear that I'm not the only one. I can't even get through to Vanguard at this point (10:25 am EST). I'll just assumed as a number of you have posted that they'll fix this. :confused

evestor
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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by evestor » Tue Mar 27, 2018 9:36 am

The homepage also fails to count cash in my total account balance. It does include it when you click in to account details. And of course it shows it when you look at your settlement fund directly.

This is a wild fail. I am blown away.

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by Monster99 » Tue Mar 27, 2018 9:57 am

Same Issue here - Looks like they sold some of my Prime MM to cover a transaction when my settlement account had more than enough. This is the second screw-up in the last few months and will finally generate enough activation energy for me to switch to Fidelity or Schwab. I guess they consider my 2M small potatoes.....

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by longleaf » Tue Mar 27, 2018 10:16 am

Glad to see it wasn't just me. Here's the email I received:

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by cortolife » Tue Mar 27, 2018 10:25 am

It DOES put one of my fund on sale, so it is not simply notification error.
So you should keep watching your pending orders today. The sale order was showing around 11:00AM today to me.
Called their customer service number multiple times, but get hung up while waiting for available associates in all calls. I get they are fully messed up.

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by stocknoob4111 » Tue Mar 27, 2018 10:34 am

I got the notice as well. My balance on the first page is less the amount in my settlement account which is erroneous. I called them directly and they clarified it was a system issue. Luckily I checked Pending activity, Transactions, Orders etc and no sign of any Sell orders.

Why not send a separate email saying that it's a glitch and to disregard the original email so that people will not freak out and call them?

A hypothetical question - if Vanguard sells securities due to their problem then who is liable for losses?

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[Vanguard sends out erroneous "not enough money in settlement fund" notice]

Post by dave1054 » Tue Mar 27, 2018 11:15 am

[See updates below. --admin LadyGeek]

I have been a happy customer of Vanguard for 20 plus years. I have never had an issue with them.
However, I am alittle concerned with the stream of negative comments lately about their services.
The computer glitch this morning is actually the first time they raised my blood pressure.

I really do love Vanguard. They do not have to worry about their stock price like Schwab or enrich
their owners like Fidelity. However, ....

1. Are they getting too large to service their customers?
2. With all my assets in cyberspace, does anyone else on forum have concerns about security?
3. Is anyone switching out of Vanguard or is this the usual common complaints of investors?
4. Sometimes I wish I could just walk into an office and complain to someone in person. Others feel this way?

alex_686
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Re: Concerns with Vanguard

Post by alex_686 » Tue Mar 27, 2018 11:28 am

If you want low costs you need to put up with the above model. Automated bare bone computer assistance is way cheaper than humans.

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timboktoo
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Re: Concerns with Vanguard

Post by timboktoo » Tue Mar 27, 2018 11:32 am

My cynical side is nervous about something that's gaining in popularity, however well-deserved it may be. Everything has a life cycle. Although I cannot foresee a greater invention for the average investor than the market cap-weighted, total stock market index fund, I doubt it will be the last step in progress.

If, a thousand years from now, we are not using a different method to invest by, then something has gone awry. For smaller time horizons, like my own investment horizon, I am just as nervous investing in Vanguard as I would be investing elsewhere. But I focus instead on what I can control and move on to more worthwhile pursuits than worry.

Peace

- Tim

StrangePenguin
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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by StrangePenguin » Tue Mar 27, 2018 11:40 am

I got 2 of these emails this morning about trades I made yesterday. I got through to a phone rep this morning and he said "nothing to worry about". It *does* look like they placed a pending order on my Prime MM account though. No big deal if they erroneously move money from Prime MM to Settlement, but not a good sign that an error like this would happen.

MI_bogle
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Re: Concerns with Vanguard

Post by MI_bogle » Tue Mar 27, 2018 11:42 am

dave1054 wrote:
Tue Mar 27, 2018 11:15 am
I have been a happy customer of Vanguard for 20 plus years. I have never had an issue with them.
However, I am alittle concerned with the stream of negative comments lately about their services.
The computer glitch this morning is actually the first time they raised my blood pressure.

I really do love Vanguard. They do not have to worry about their stock price like Schwab or enrich
their owners like Fidelity. However, ....

1. Are they getting too large to service their customers?
2. With all my assets in cyberspace, does anyone else on forum have concerns about security?
3. Is anyone switching out of Vanguard or is this the usual common complaints of investors?
4. Sometimes I wish I could just walk into an office and complain to someone in person. Others feel this way?
1. Maybe. Maybe not. Keep in mind that complainers on an internet forum are a vocal minority. I have used Vanguard customer service twice in 5 years and both times had practically no hold time on the phone, or any issue having my questions resolved

2. Your assets are going to be in cyberspace anywhere. It's 2018

3. Not me personally but some are; yes

4) I do not feel that way


If you go troll around any large company, you're going to find a vocal minority of upset people. It's just how percentages work when dealing with millions of customers

Whether or not that triggers you to switch companies is a personal decision. Seems a bit short sighted to me if you have been a happy customer for 20 years and have never had issues with their customer service

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by alpenglow » Tue Mar 27, 2018 11:42 am

I didn't get this notice, but issues like this just shouldn't happen. I've spread my investments across Fidelity and Vanguard, along with some other 403b/457 providers. I really wonder if I should consolidate at Fidelity. If only they would bring back those transfer offers.

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Re: Concerns with Vanguard

Post by Socal77 » Tue Mar 27, 2018 11:43 am

I like "free riding" at Fidelity because as a Boglehead investor I can use any of their no transaction fee index funds, or Blackrocks commission free iShares ETF's, and create Vanguard like products and costs or better.

If I do need something Fidelity's customer service is good (meaning they pick up the phone promptly and answer questions).

However, I have been recommending people without Boglehead knowledge to open accounts with Vanguard because I trust they still have the integrity to put the customers best interests first.

I think the trade-off is real though with Vanguards business model. You might not get the customer service due to the low cost model not supporting a typical "sales" oriented business.
Last edited by Socal77 on Tue Mar 27, 2018 11:50 am, edited 1 time in total.

SVT
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Re: Concerns with Vanguard

Post by SVT » Tue Mar 27, 2018 11:45 am

You can still invest using Vanguard funds but not house your money with Vanguard.

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The529guy
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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by The529guy » Tue Mar 27, 2018 11:51 am

The rep I spoke to said that the email notifications were automatically triggered because their system was not correctly registering account values associated with Vanguard Federal Money Market Fund.

stocknoob4111
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Re: Concerns with Vanguard

Post by stocknoob4111 » Tue Mar 27, 2018 11:53 am

been very happy with Vanguard's platform until this morning - made me pretty nervous how something so basic as not showing the correct calculations can happen. This is a MAJOR issue and it needs to be addressed as a extremely serious event. If they had mistakenly sold off my securities when they should not have then I would've had thousands in losses, who is liable for that?

Related question - I already have both Schwab and Fidelity brokerages. Say I move my existing VG funds to Schwab it's not considered a sale right? It does not generate any tax events? The VG funds just goes from one custodian (currently VG) to another i.e. Schwab. This is how I understand it. Of course, I will not be able to buy any more VG funds without exorbitant fees but I can just start buying Schwab funds instead. Just want to understand the alternatives.
Last edited by stocknoob4111 on Tue Mar 27, 2018 11:58 am, edited 1 time in total.

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Re: Concerns with Vanguard

Post by digit8 » Tue Mar 27, 2018 11:58 am

As far as security concerns go, I've worked at financial instituions my whole life and the major ones all have similar strengths and concerns. There is a case for diversifying to reduce the risk of losing everything to one hacker- but a counter argument that it's in effect multiplying the number of targets you're placing on yourself. Six of one....
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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by alpenglow » Tue Mar 27, 2018 12:01 pm

The529guy wrote:
Tue Mar 27, 2018 11:51 am
The rep I spoke to said that the email notifications were automatically triggered because their system was not correctly registering account values associated with Vanguard Federal Money Market Fund.
They must be using Google Finance for their information. :twisted:

stocknoob4111
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Re: Concerns with Vanguard

Post by stocknoob4111 » Tue Mar 27, 2018 12:01 pm

digit8 wrote:
Tue Mar 27, 2018 11:58 am
As far as security concerns go, I've worked at financial instituions my whole life and the major ones all have similar strengths and concerns. There is a case for diversifying to reduce the risk of losing everything to one hacker- but a counter argument that it's in effect multiplying the number of targets you're placing on yourself. Six of one....
I login and check my large accounts daily (2 brokerages and savings), I use a password manager so it's a 1-click affair that takes me all of 1-2 minutes. I validate there is no suspicious activity so I can catch anything immediately. One needs to be pro-active these days.

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Re: Concerns with Vanguard

Post by Call_Me_Op » Tue Mar 27, 2018 12:15 pm

Socal77 wrote:
Tue Mar 27, 2018 11:43 am
I like "free riding" at Fidelity because as a Boglehead investor I can use any of their no transaction fee index funds, or Blackrocks commission free iShares ETF's, and create Vanguard like products and costs or better.

If I do need something Fidelity's customer service is good (meaning they pick up the phone promptly and answer questions).

However, I have been recommending people without Boglehead knowledge to open accounts with Vanguard because I trust they still have the integrity to put the customers best interests first.

I think the trade-off is real though with Vanguards business model. You might not get the customer service due to the low cost model not supporting a typical "sales" oriented business.
My thoughts summarized quite nicely.
Best regards, -Op | | "In the middle of difficulty lies opportunity." Einstein

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Re: Concerns with Vanguard

Post by nbseer » Tue Mar 27, 2018 12:19 pm

Yikes! Got this email today from Vanguard, in part: "You don't have enough money in your money market settlement fund to pay for a recent trade in your Vanguard Brokerage Account "

I called Vanguard, a rep said don't worry, I DO have enough money for the trade, system-wide breakdown, they're 'working on it'. :oops:

Glad half my money is with Fidelity!

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Re: Concerns with Vanguard

Post by ruralavalon » Tue Mar 27, 2018 12:21 pm

What was the computer glitch this morning?
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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Re: Concerns with Vanguard

Post by Agggm » Tue Mar 27, 2018 12:27 pm

stocknoob4111 wrote:
Tue Mar 27, 2018 12:01 pm
digit8 wrote:
Tue Mar 27, 2018 11:58 am
As far as security concerns go, I've worked at financial instituions my whole life and the major ones all have similar strengths and concerns. There is a case for diversifying to reduce the risk of losing everything to one hacker- but a counter argument that it's in effect multiplying the number of targets you're placing on yourself. Six of one....
I login and check my large accounts daily (2 brokerages and savings), I use a password manager so it's a 1-click affair that takes me all of 1-2 minutes. I validate there is no suspicious activity so I can catch anything immediately. One needs to be pro-active these days.
I get an email summarizing all transactions across all my accounts delivered periodically. I've caught a couple of fraudulent activities in past 8 or 9 years.

Monster99
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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by Monster99 » Tue Mar 27, 2018 12:27 pm

Are they (Vanguard) responsible for lost interest since they sold my Prime MM in error? I doubt They will even acknowledge that a problem even existed, let alone apologize to their customers.....

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ResearchMed
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Re: Concerns with Vanguard

Post by ResearchMed » Tue Mar 27, 2018 12:28 pm

stocknoob4111 wrote:
Tue Mar 27, 2018 11:53 am
been very happy with Vanguard's platform until this morning - made me pretty nervous how something so basic as not showing the correct calculations can happen. This is a MAJOR issue and it needs to be addressed as a extremely serious event. If they had mistakenly sold off my securities when they should not have then I would've had thousands in losses, who is liable for that?

Related question - I already have both Schwab and Fidelity brokerages. Say I move my existing VG funds to Schwab it's not considered a sale right? It does not generate any tax events? The VG funds just goes from one custodian (currently VG) to another i.e. Schwab. This is how I understand it. Of course, I will not be able to buy any more VG funds without exorbitant fees but I can just start buying Schwab funds instead. Just want to understand the alternatives.
What you are describing is a "Transfer In Kind" (and NOT sell and transfer cash, repurchase same or something else).

That requires that the receiving institution IS able to handle/accept the specific fund family and specific fund, and also share class. (If it's only a share class change, then that can probably be handled without any selling/buying, but that should be clarified in advance.)

This type of transfer is especially useful in taxable accounts, when a sale would/might result in significant capital gains taxes, etc.
But it would also save on any transaction fees.
NOTE however, that if you transfer in kind to Schwab and the funds do have transaction fees, you'd later pay to sell (or might - check first!).
If so, perhaps you'd want to sell and transfer as cash, unless it's a taxable account and there would be taxes due.

RM
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Re: Concerns with Vanguard

Post by lahob » Tue Mar 27, 2018 12:28 pm

Agggm wrote:
Tue Mar 27, 2018 12:27 pm
I've caught a couple of fraudulent activities in past 8 or 9 years.
At Vanguard or somewhere else?

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Re: Concerns with Vanguard

Post by stocknoob4111 » Tue Mar 27, 2018 12:32 pm

ruralavalon wrote:
Tue Mar 27, 2018 12:21 pm
What was the computer glitch this morning?
If I were to take a guess perhaps an error in the database query that reads the settlement account balance... perhaps and incorrect join on the settlement fund causing the system to assume the settlement balance as zero... pure speculation of course :mrgreen: But if my analysis is right then they need to hire better Software Engineers :oops:

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Re: Vanguard "system issue" 3/27/18 [erroneous "not enough money in settlement fund" notice]

Post by letsgobobby » Tue Mar 27, 2018 12:36 pm

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Last edited by letsgobobby on Wed May 29, 2019 11:27 pm, edited 1 time in total.

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Re: Vanguard "system issue" 3/27/18

Post by Scrapr » Tue Mar 27, 2018 12:40 pm

LOLC2k wrote:
Tue Mar 27, 2018 8:55 am
..Geez. When I randomly set up a roth 10 or so years ago, I picked fidelity on a whim. Since coming here I see I lucked out into one of the better ones, though not as good as Vanguard. But apparently Vanguard has security issues, I've only been here a short time and this isn't the first time this has been referenced. I have not had a single SNAFU at Fidelity in all 10 years.

Still, I hope it's resolved, because if I ever want to open a new account somewhere, or roll something over, Vanguard was my number one choice so I wasn't holding everything at Fidelity.
a quick google search show Fidelity site has been down twice since November 2017

and boy there are a lot of traders here! LOL

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Re: Concerns with Vanguard

Post by mindboggling » Tue Mar 27, 2018 12:47 pm

I have been a Vanguard investor for thirty years. I don't bother them much. I can do what I need to do online. I've never spoken to my Flagship rep. I do, however, worry about the constant complaints about poor customer service and their seemingly outdated IT infrastructure.

Last year I moved my smallish Roth IRA to Fidelity but kept it in a Vanguard LifeStrategy fund. I've found I don't like Fidelity's website. It's confusing and complicated. I don't like the way they emphasize trading and active management. I don't like the way they hide their index funds, although I understand why they do it. In all fairness, I've never spoken to a customer service rep since the initial transfer from Vanguard, although they have a reputation for good customer service.

Sometimes I wonder if I should move the Roth back to Vanguard. Simplicity is important to me as I get older (I'll be 65 in a few weeks), and I really don't want to be dealing with two different companies. I haven't done it yet, but I think about it all the time.
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Re: Concerns with Vanguard

Post by indexfundfan » Tue Mar 27, 2018 1:11 pm

nbseer wrote:
Tue Mar 27, 2018 12:19 pm
Yikes! Got this email today from Vanguard, in part: "You don't have enough money in your money market settlement fund to pay for a recent trade in your Vanguard Brokerage Account "
I received this email too.

But this is not the worst. Last month, Vanguard charged me more than $100 of margin interest because they used margin to pay for a fund I bought instead of from the settlement fund. After I brought this to their attention, they recognized their mistake and credited the margin interest back to me.

I think I will lose money on this because I believe this credit will come back to bite me on a 1099MISC form. :(
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ResearchMed
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Re: Concerns with Vanguard

Post by ResearchMed » Tue Mar 27, 2018 1:17 pm

indexfundfan wrote:
Tue Mar 27, 2018 1:11 pm
nbseer wrote:
Tue Mar 27, 2018 12:19 pm
Yikes! Got this email today from Vanguard, in part: "You don't have enough money in your money market settlement fund to pay for a recent trade in your Vanguard Brokerage Account "
I received this email too.

But this is not the worst. Last month, Vanguard charged me more than $100 of margin interest because they used margin to pay for a fund I bought instead of from the settlement fund. After I brought this to their attention, they recognized their mistake and credited the margin interest back to me.

I think I will lose money on this because I believe this credit will come back to bite me on a 1099MISC form. :(
I'd think they should handle it the way they usually handle/fix their errors (can't believe the need to use the word "usually"!): That is, don't give a "credit"... Unwind the entire transaction history, and then make it a "do over" a la Service Master: "As if it never happened".
(To me, that's also a way to bury history of errors, but no one seems concerned about that...)

RM
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SpringMan
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Re: Concerns with Vanguard

Post by SpringMan » Tue Mar 27, 2018 1:20 pm

ruralavalon wrote:
Tue Mar 27, 2018 12:21 pm
What was the computer glitch this morning?
I had a Vanguard computer glitch this morning too, 3/27/2018. Maybe the OP's was different. Yesterday I bought a fund in our joint taxable account with what was in our settlement. The money in the settlement account was from an RMD that showed up from a sale in my tIRA. Online everything looked normal but Vanguard (VBS) sent out two alert emails, one to my wife, one to me, saying we made an unfunded trade and if we did not transfer money in, they threatened to sell securities in that taxable account to cover the deficit. I spent a half hour on the phone with a Vanguard rep. I was assured that everything was fine and the emails were sent out in error. The rep on the phone did mention they were having computer glitches this morning.
Last edited by SpringMan on Tue Mar 27, 2018 1:23 pm, edited 1 time in total.
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indexfundfan
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Re: Concerns with Vanguard

Post by indexfundfan » Tue Mar 27, 2018 1:21 pm

ResearchMed wrote:
Tue Mar 27, 2018 1:17 pm
indexfundfan wrote:
Tue Mar 27, 2018 1:11 pm
nbseer wrote:
Tue Mar 27, 2018 12:19 pm
Yikes! Got this email today from Vanguard, in part: "You don't have enough money in your money market settlement fund to pay for a recent trade in your Vanguard Brokerage Account "
I received this email too.

But this is not the worst. Last month, Vanguard charged me more than $100 of margin interest because they used margin to pay for a fund I bought instead of from the settlement fund. After I brought this to their attention, they recognized their mistake and credited the margin interest back to me.

I think I will lose money on this because I believe this credit will come back to bite me on a 1099MISC form. :(
I'd think they should handle it the way they usually handle/fix their errors (can't believe the need to use the word "usually"!): That is, don't give a "credit"... Unwind the entire transaction history, and then make it a "do over" a la Service Master: "As if it never happened".
(To me, that's also a way to bury history of errors, but no one seems concerned about that...)

RM
That's what I wanted and told them. But after a lot of back and forth, before they finally admitted that they were wrong, I was happy to get back the credit. I'm too tired to fight them to get them to unwind the whole thing for a few tens of dollars.
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beyou
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Re: Concerns with Vanguard

Post by beyou » Tue Mar 27, 2018 2:05 pm

stocknoob4111 wrote:
Tue Mar 27, 2018 12:32 pm
ruralavalon wrote:
Tue Mar 27, 2018 12:21 pm
What was the computer glitch this morning?
If I were to take a guess perhaps an error in the database query that reads the settlement account balance... perhaps and incorrect join on the settlement fund causing the system to assume the settlement balance as zero... pure speculation of course :mrgreen: But if my analysis is right then they need to hire better Software Engineers :oops:
Recall the days when if something went wrong on Amazon, you were lost in email hell, no humans.
Just this week I had an online chat about an order filled incorrectly, they sent me one of an item instead of the quantity ordered,
but charged me for the full quantity. The friendly person (or chatbot) said "don't bother mailing back the item, we'll fill the original order free
and you can keep the one you received. Replacement order showed up 1-2 days later. Point is, Amazon grew fast, but as a tech centric firm,
they spent $ need to improve their service as they grew. My concern is that Vanguard is not doing so. Seems to be they do not invest enough in technology and allow issues to linger forever. Their services are simple, how can they not have resources to stabilize their minimal electronic service offering ? I could see how a fast evolving platform would introduce instability, but nothing ever changes on the site.

Yes costs are low on a % basis, but with all the assets flying in the door, they could well afford to improve their tech without harming the cost advantage.

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beyou
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Re: Concerns with Vanguard

Post by beyou » Tue Mar 27, 2018 2:08 pm

Today's message of the day :

"Your money market settlement balance may be displaying inaccurately

Your settlement fund may be inaccurately showing a zero balance below. Click on your account to view your correct balance on the Balances and Holdings page. We apologize for any inconvenience as we work to resolve this issue."

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