Funny, when I talked to them on Friday they told me there were no issues and I should see my new shares once they "run their batch" after midnight...
Well, 2 days later now (Sunday) and obviously my new shares haven't converted yet!
The way they explained it to me is that DTCC is a 3rd party that purchases the old securities as "debt", then redistributes the new shares to the brokers. When I asked why other brokers had already converted they said that because DTCC has had delays or not even re-distributed shares in the past it's a risk they will not take with OTC stocks.
He said it doesn't happen often, but occassionally DTCC has not given the shares to Scottrade. So basically they blame it on DTCC and OTC stocks, that it is too high of a risk until they actually receive the new shares.
This is BS and they want $50 PER HOLDING to allow me to move my account to a new broker! When I say per holding, they mean each lot purchased - so for example, I bought 1k shares of LPIH.ob, then another 1.5k a few days later, and another 1k a month after that. Therefore, they want $150 just for that one holding because I purchased them in multiple lots!!
NONE OF THIS BS was in the paperwork when I opened my account! Not to mention they ran my credit and opened a revolving credit account WITHOUT my permission! I strictly opened a CASH ACCOUNT, I did not want a margin account nor do I have one! WTF?!
Anyways, I know that PUDC HAS been converted based on the new "cleared securities" list from DTCC. Will Scottrade be issuing my new shares or not??? I can not afford to lose all the money I have invested in this company!!
...really good customer service to tell a new client they might not give them their shares or a refund of any sort! He should have just kept his mouth shut!
Someone please give me some re-assurance here! It's obvious you guys don't like Scottrade, but can they really do this??
Thanks!
