Arbitration

[quincy]

OPs bank being wiser than Fidelity does not make the OP smart for operating this way.

With large checks, it is smarter to skip the mobile deposit and head to the bank in person, and get a bank receipt for the deposit. There will still be a hold on the deposited check, however.

 

[FlyingRon]

You don't want to go through arbitration for this. Disclosure: I am a FINRA arbitrator. I would be the type of person who ends up on a panel to decide these things. Arbitration isn't a good place to go pro se on anything and it isn't speedy. I've got hearings just coming up for cases that were started on an "expedited" basis back two years ago.

You're going to come out ahead by escalating your problem a reasonably high point (this may take written letters) and showing whatever it is that they want to prove that you're not attempting fraud.

 

[PayrollHRGuy]

This really doesn't seem to have anything to do with the OP's situation. The OP deposited a check, the check cleared, and now Fidelity has frozen her account due to fraud concerns.

If the funds are deposited into an FDIC account they have to follow FDIC rules.

 

[FlyingRon]

Brokerage accounts are not usually covered by FDIC. SIPC would be the general organization that would apply to cash held by the broker.

 

[PayrollHRGuy]

Brokerage accounts are not usually covered by FDIC. SIPC would be the general organization that would apply to cash held by the broker.

It is, according to Fidelity.

https://www.fidelity.com/go/join-fidelity-investments?imm_pid=700000001008875&immid=100742&imm_eid=ep6543813693&gclid=CjwKCAiAl-6PBhBCEiwAc2GOVG4kcb7rjqKFjYp3SjVVNxpNZUHu9Z-Rx-d5aHq9Zr3aR_cxmM3KVxoCmPYQAvD_BwE&gclsrc=aw.ds

The Cash Balance in the Fidelity Cash Management Account is swept to an FDIC-insured account at one or more Program Banks where it earns a variable rate of interest. The deposit at the Program Bank is not covered by SIPC.

 

[Zigner]

HOWEVER, the funds were placed on hold. They haven't yet moved to an FDIC-insured account.