Horrendous customer service at Vanguard

[plsprius]

I wonder if part of the problem here might’ve been that the beneficiaries themselves were not the one initiating the requests. I was recently a beneficiary on an inherited IRA at Vanguard and the transaction was very quickly handled. I was able to simply email a PDF of a death certificate.

As it happens, I had my first problem with a Fidelity issue today, as they screwed up paying my Fidelity cash rewards credit card from my Fidelity account.

“Nothing is perfect anymore!”

 

[PatrickA5]

I wonder if part of the problem here might’ve been that the beneficiaries themselves were not the one initiating the requests. I was recently a beneficiary on an inherited IRA at Vanguard and the transaction was very quickly handled. I was able to simply email a PDF of a death certificate.

As it happens, I had my first problem with a Fidelity issue today, as they screwed up paying my Fidelity cash rewards credit card from my Fidelity account.

“Nothing is perfect anymore!”

In our case, the beneficiary is the one initiating the request. From reading similar threads on Bogleheads, it's pretty much hit or miss these days. Luck of the draw.

 

[Koolau]

The gave me a long convoluted reason but I chose not to bore people with the details as the rep was even baffled. Whether it’s the system or a bad rep , me the customer shouldn’t have to be on the phone for three hours.
“ above average call volume”. Hahaha. Love when companies pull that card. They make it standard messaging as a defense to defend bad service.

I haven't been on a phone call recently (well for the past 4 years) without the "above average call volume" warning.

 

[Koolau]

IIRC, you can't just show up to Malvern to get in person service.

They used to have a public service center on site but that was closed many years ago.

Not sure if you can make an appointment to see someone, but please don't just show up at the main gate and expect to get in.

I'm just glad you can still call them! So many places all but insist you use their web site. Finding an actual phone number can be all but impossible. I recall once calling the "fraud line" (required by the industry for that company - only number I could find on the web site and asking THEM how to reach the company's customer line.)

 

[MRG]

In our case, the beneficiary is the one initiating the request. From reading similar threads on Bogleheads, it's pretty much hit or miss these days. Luck of the draw.

It's always like that with death claims, has been for decades. Fifty different sets of laws, the average representative doesn't use most weekly or monthly, different permutations of ownership and beneficiaries.
Just when you have it mastered, the laws change. On top of that, most of the management in fund companies are driven by numbers. "How many calls did you take this week? No raise for you, Susie took twice as many." It's no surprise that when paper was passed around back offices, death claims would frequently disappear.

 

[Markola]

I encountered a financial company recently that wants me to pay $30/month in order to talk with a human when I need something. LOL. Hard pass on that firm, but I hope this concept to gouge investors doesn’t become a trend.

 

[sengsational]

I'm glad to hear that the OP is getting somewhere. Meditation is one approach, but for me, it's setting expectations. It sounds like the idea was that the first call would make it happen. I'm just happy if I can understand the CSR and they seem somewhat cogent. Obviously and generally, if you can do it on the web site, do it there. But so many times, you can't. Then the company CSR's have no tools any more comprehensive than the web site. Their performance is often measured in a way that is certain to infuriate; instead of telling you they don't have the tools or authority, they keep you on the phone forever, hoping to outwait you. Then, at the end of the call, they put you on silent hold rather than hang up, so you don't get access to the automated survey. But it looks like I went on a rant here, doesn't it?

I guess my point is that if it's not possible to do it on the web site, and not possible to fill/mail forms, then I'm not expecting to get anything done with anything that is remotely expedient, irrespective of the company or agency.

 

[athena53]

They must have read this thread! LOL

More like the OP doing what they advise on Flyertalk_dot_com. If the rep can't do what you want, be polite hag up, call again and you'll get another rep. Easier said than done, of course, with long wait times and the repetitive message tat you can visit their web site and get things done. Not when the web site doesn't allow it.

 

[PatrickA5]

We're going through the same thing with FIL's account. DW and SIL are 50/50 beneficiaries of his one brokerage account (3 funds).

Try #1 Online. Got all the way through the submit button 3 times and always got a "sorry, please call this number"

Try #2 Talked to a guy in the "Account Transfers" department that specializes in inheritances. He walked us through the online process and it still didn't work. He was able to set up the account for DW and he said to email the death certificate and all will be well.

Try #3. I just didn't feel right about what guy #2 said, so a couple of days after mailing the death certificate, we called to make sure they got it. Sure enough, Girl #3 couldn't find anything and didn't know why Guy#2 did it the way he did. So, she had DW do "forms" online using docusign. She said to check the new account in 10 business days and see if the money shows up.

I imagine we'll be dealing with Guy/Gal #4 in a couple of weeks to start over. Also, we'll have to go through the same process with SIL, since she can't do any of this stuff herself (another issue!).

T Rowe Price was excellent. One phone call. Three days later logged on to new account and funds were there. Basis was right too!

OMG! Didn't think DW's inheritance process could get any worse, but for some reason VG decided to apply the same beneficiaries on FIL's IRA to his other accounts. DW is not primary beneficiary on the IRA - his second wife is. So, VG decides to apply FIL's 2nd wife to the other accounts as Primary - even though she is not a beneficiary at all on these other accounts!

Try #4. VG representative #4 says she will change the beneficiaries to what they should be. She said not to help Wife #2 file for the IRA until after DW's inheritance actually shows up - just to avoid other possible problems. We haven't even started helping DW's sister with her half of the inheritance.

If we should ever get this inheritance, we'll be moving to Fidelity within a month.

 

[ERD50]

How about contacting Schwab. Ask if you toddle on down with an original death certificate, your two nieces, and the Vanguard account info, whether they can open the inherited accounts there (although empty) and drag the funds out of Vanguard?

I found Schwab/TD to be very effective extracting funds . . .

This was my thought as well. I think that if the account is set up properly at Schwab , that Schwab could the 'pull' the funds over from Vanguard. "Pulling" seems to work far better than 'pushing' for these things.

Note that you can't transfer across brokerages unless the account matches what it needs to be, you can't transfer and change anything at the same time (like a Roth must go to a Roth, Trad to Trad, etc - you can't move and convert at the same time).

I think someone at Schwab (or Fidelity) could tell you if they can do this.

Good Luck!


-ERD50

 

[aja8888]

When my wife passed away in December, I was the beneficiary of her traditional IRA. I filled out the transfer form online, printed it out and took a death certificate to the local Schwab office and handed it to them. In a few days, everything was done properly.

I left Vanguard several years ago.

 

[PatrickA5]

When my wife passed away in December, I was the beneficiary of her traditional IRA. I filled out the transfer form online, printed it out and took a death certificate to the local Schwab office and handed it to them. In a few days, everything was done properly.

I left Vanguard several years ago.

I should note, that the T.Rowe Price part of DW's inheritance was completed and in her account within 3 days. All done online. We'll be moving that to Fidelity too. At some point, we might move our taxable funds to Schwab. Looking into that.

 

[aja8888]

I should note, that the T.Rowe Price part of DW's inheritance was completed and in her account within 3 days. All done online. We'll be moving that to Fidelity too. At some point, we might move our taxable funds to Schwab. Looking into that.

I've had my Schwab IRA and brokerage accounts at Schwab for almost 40 years. Never had a problem and calling always gets me an agent in minutes. Or I can just drive a few miles to their large office here.

I tried Vanguard for a SOLO 401K and brokerage account around 2014 and had multiple problems. So I moved the funds to Schwab ASAP.

 

[djsander]

I’ve found the best way to get help from a company when I get a lack of customer service is post on their face book page and send a message on their Facebook page. Companies seem to be more responsive when that occurs. I’ve even had them pm me and send a direct number to talk. YMMV.

 

[PatrickA5]

OMG! Didn't think DW's inheritance process could get any worse, but for some reason VG decided to apply the same beneficiaries on FIL's IRA to his other accounts. DW is not primary beneficiary on the IRA - his second wife is. So, VG decides to apply FIL's 2nd wife to the other accounts as Primary - even though she is not a beneficiary at all on these other accounts!

Try #4. VG representative #4 says she will change the beneficiaries to what they should be. She said not to help Wife #2 file for the IRA until after DW's inheritance actually shows up - just to avoid other possible problems. We haven't even started helping DW's sister with her half of the inheritance.

If we should ever get this inheritance, we'll be moving to Fidelity within a month.

Update: Funds showed up in VG's account this morning! Yahoo! No cost basis showing up yet, but maybe that takes a couple of days?

 

[MRG]

Update: Funds showed up in VG's account this morning! Yahoo! No cost basis showing up yet, but maybe that takes a couple of days?

Doesn't the cost reset on inherited assets? It will probably show up after a nightly cycle, but that's a guess.

 

[plsprius]

Doesn't the cost reset on inherited assets? It will probably show up after a nightly cycle, but that's a guess.

My 2 cents: If it's an inherited IRA, no taxes have yet been paid. Thus, distributions, when taken, are fully taxable to the beneficiary as ordinary income. You don't get a basis step-up on regular IRAs. That is sort of like saying the tax basis is zero.

 

[MRG]

My 2 cents: If it's an inherited IRA, no taxes have yet been paid. Thus, distributions, when taken, are fully taxable to the beneficiary as ordinary income. You don't get a basis step-up on regular IRAs. That is sort of like saying the tax basis is zero.

+1

Yes, that makes sense.

 

[Time2]

I made two calls to Vanguard on Tuesday, the first one I got an agent within 15 seconds, that helped my with the problem, although it involved emailing me paperwork and snail mailing it back to them. I was hoping I could add our bank to my wife accounts online, so I could transfer money, they said I had to do it by mail. Then I called again, because it wasn't clear whose name went where it took about 30 seconds that time to get an agent.

YMMV

 

[Koolau]

I made two calls to Vanguard on Tuesday, the first one I got an agent within 15 seconds, that helped my with the problem, although it involved emailing me paperwork and snail mailing it back to them. I was hoping I could add our bank to my wife accounts online, so I could transfer money, they said I had to do it by mail. Then I called again, because it wasn't clear whose name went where it took about 30 seconds that time to get an agent.

YMMV

This is more my experience than some previous posters. I guess there's a certain element of luck involved. (Heh, heh, better lucky than good.)

 

[FREE866]

OP here with update


Had another call with VG today and we should be good! I'm so friggin relieved! In hindsight I dont know if it was the original rep I had or their system, but I will say for sure the rep we had today was def take charge and all business which I appreciate.


To be honest, what I experienced last week was reminiscent of the anxiety I used to feel on a weekly basis when I was working and maybe I'm just not the same person as I was 6+ years ago. Thank God for the mostly stress free life that ER has gifted me. Incredibly grateful.

 

[Rianne]

I made two calls to Vanguard on Tuesday, the first one I got an agent within 15 seconds, that helped my with the problem, although it involved emailing me paperwork and snail mailing it back to them. I was hoping I could add our bank to my wife accounts online, so I could transfer money, they said I had to do it by mail. Then I called again, because it wasn't clear whose name went where it took about 30 seconds that time to get an agent.

YMMV

We had a similar experience with snail mail switching to their brokerage account. Had to have a notary (twice) because of our error in signatures in the right place. Back and forth. It's a hassle, but I'm glad they do it this way. Who knows what shenanigans could happen if the wrong people go ahold of this information?

 

[athena53]

We had a similar experience with snail mail switching to their brokerage account. Had to have a notary (twice) because of our error in signatures in the right place. Back and forth. It's a hassle, but I'm glad they do it this way. Who knows what shenanigans could happen if the wrong people get hold of this information?

In my neck of the woods, mail box theft has been a troublesome issue for years. They don't even recommend leaving any important outgoing mail in the outdoor dropbox because people use a fishing line and something sticky to get envelopes out of it. Even though I have a PO Box, I once had an item shown in the Informed Delivery preview, correctly addressed, first-class mail, go missing.

There are plenty of ways for the wrong people to steal vital information in snail-mail.

 

[Koolau]

In my neck of the woods, mail box theft has been a troublesome issue for years. They don't even recommend leaving any important outgoing mail in the outdoor dropbox because people use a fishing line and something sticky to get envelopes out of it. Even though I have a PO Box, I once had an item shown in the Informed Delivery preview, correctly addressed, first-class mail, go missing.

There are plenty of ways for the wrong people to steal vital information in snail-mail.

This probably belongs in the Pet Peeve category, but while mail box theft is rampant, I don't see (or hear) of much effort to stop it or at least punish it. YMMV

 

[aja8888]

https://www.early-retirement.org/forums/images/smilies/grin.gif

This probably belongs in the Pet Peeve category, but while mail box theft is rampant, I don't see (or hear) of much effort to stop it or at least punish it. YMMV

Who is going to enforce it? The Post Office.....LOL!

It's rampant around here and no one does anything about it. If I have ANYTHING important to mail, I take it directly to the Post office and go inside. Every one of my bills are paid via the internet.