PenChecks Trust

With all the complications of closing my father's trust, I wondered what to do with an unexpected check that showed up nearly a year after his passing. My siblings and I agreed to give the money to a program that helps feed the hungry on the Thai-Myanmar border and that's what I did. However, many months went by and when the tax preparer asked what happened to the check, I couldn't find the amount on any of the statements! When I called the HelpDesk of PenChecks, my mistake wasn't pointed out to me, but Laurie took her time collecting the necessary information to track down the endorsement on the check. She warned me it might take a couple of days, but within the hour she emailed me a photocopy of the lost check and I was able to track it down for tax purposes. Thank you, PenChecks!
Sincerely, Edith Roberts Main

We as honest hard working Americans should never be treated this way! It is not there money it is his. ? is it legal to have an employee working there to have felony charges>> I have facts, Mr. Attorneys it is not.
How do you sleep at night time for the IRS , Division of Banking, BBB, and all involved in this horrible scam be reported. It has now been Reported to Major TV. networks as so I heard...……...……...………...…………...…...………...………...⇄ Shame on you. How would you feel if this were to happen to you? And, I am not sure why I cannot submit this without filling all the text fields. Someone please investigate this.

I wanted to roll over my 401k, this PenChecks company gets my money and after five months never notifies meAfter I hunt my money down PenChecks tacks on monthly fees and a hefty transfer fee401K and IRA are just scams! everyone has there hand in your moneyWonder what this company is doing to others who lost their investments?

TO: [redacted] - Revdex.com of San Diego, Orange & Imperial Counties FR: [redacted] , CCO – PenChecks Trust RE: Complaint of Matthew [redacted] – Revdex.com Complaint ID # [redacted] Date: 5/10/Dear Mr [redacted] Thank you for your email and the Complaint attached with itThank you for the additional time to respondUsing both IE and Google Chrome, I was unable to access the link provided for the ComplaintWe very much appreciate you emailing to us a pdf of the ComplaintIn reading the Complaint it appears that Mr [redacted] comments are primarily directed at our vendor, Alpha & Omega Financial Management Consultants, Inc(“A&O”)However, because they are our vendor we take full responsibility for any inadequate or insufficient service and will take every opportunity to help them improve our service Accordingly, I have investigated Mr [redacted] complaint, and ascertained the following: A Default/Missing Participant (D/MP) IRA was set up for the Customer (i.e., Mr [redacted] hereafter “Participant”) at PenChecks by his former employer from funds left by the Participant in his/her former employer’s retirement plana By way of background, D/MP IRAs are a special type of IRA account created and governed by federal law, CFR §§2550.404a-and 2550.404a-respectively, to deal with the issue of non-responsive and lost ( aka “missing”) participants in qualified retirement plans (e.g., 401(k) plans)Notification of the establishment of the IRA is sent to the Participant at the time the IRA is established and is mailed to their last known address as provided to us by their former employerb Consequently, if the former employer’s records are not up to date, and/or if the Participant fails to notify their former employer of a new address or fails to take their retirement funds with them when they leave their employer, then the Participant becomes separated from their fundsAs stated above, an initial notice is sent to the ParticipantThereafter, every year we prepare and file IRS Form so that when the Participant files their tax return they will have notice of the Form (which has all of PenChecks contact information on it) and hopefully contact us and claim their fundsMoreover, every months we conduct another search for the Participant and, if a new address is found, we update our records for the Participant and, prepare and file an updated IRS Form It is this process that enabled Mr [redacted] to find and claim his funds 1/22/– Customer contacts PenChecks to claim his fundsPenChecks notifies A&O the same dayPlease note: a PenChecks uses A&O as a vendor to administer the D/MP IRA program b In the interest of full disclosure, A&O is a separate but related entityIt is not a wholly-owned subsidiary, nor does either company control the otherA&O occupies the office suite next door to PenChecks but has separate ownership, employees, etc., from PenChecks On/about 1/23/– MP Election Form is mailed to the Participant by A&OPlease note the form was mailed to Mr [redacted] the next day On about 2/10/– Mr [redacted] fills out and returns the MP Election Form and it is received by A&OHowever, Mr [redacted] had inadvertently returned an incomplete formMr [redacted] had both traditional and Roth monies which must be accounted for separately due to the different tax treatments of these sources Please also note – Page of the form states at the top “Distribution Processing Time may take 30-days from the date of receipt of your complete Missing Participant Form – IRA.” Processing is normally accomplished much more quicklyHowever, because there are circumstances beyond PenChecks’ and/or A&O’s control, we feel it is best practice to notify the Participant of the likely farthest range of processing time 2/18/– A&O sent email confirming receipt of his distribution requestThis confirmation also noted the “may take 30-days from date of receipt” processing time 2/18/– Due to incomplete form, the request is taken out of automated processing 2/20/– Altered form is assigned to [redacted] at A&O for resolution 2/25/to 4/09/– Series of phone calls and emails b/t A&O staff and Mr [redacted] to explain the process, the incomplete form and, the delays that are caused by the incomplete forms, etc 4/09/– Distribution request re-entered in the system for processing 4/10/- Incomplete form again halts processing 4/15/– Manual override entered to prevent incomplete form from interrupting processingChecks to participant are processed and, at Participant’s request, mailed certified mail (at PenChecks’ cost) to the ParticipantA&O emails Participant confirmation and tracking number for his check 4/18/– Mr [redacted] is paid out, receiving checks in the amounts of $and $for the Roth and traditional sources Findings & Conclusions: Our vendor’s stated service standard is up to days from the date of receipt of the MP Election Form, assuming all information provided by the Participant is correct, complete, etc In Mr [redacted] case we exceeded the service standardHowever, the delay was caused by the incomplete form Because the service standard is plainly stated and was communicated twice to Mr [redacted] in writing, and because the delay in processing was caused by the incomplete form, we believe we have communicated openly and honestly in this matter PenChecks holds all customers’ funds in separate accounts from its own fundsEven if PenChecks were to close, file bankruptcy or otherwise be forced to liquidate, Missing Participants’ funds are 100% FDIC insuredAnd in the FDIC’s year history, “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.” https://www.fdic.gov/consumers/banking/facts/ If there is a need for further discussion of if I may be of further service please do not hesitate to contact me With best regards, I remain, Sincerely yours, [redacted] , JD | Chief Compliance Officer PenChecks Trust La Mesa Blvd., Ste101, La Mesa, CA direct: | mobile: [redacted] @penchecks.com | www.PENCHECKS.com

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this proposed action would not resolve my complaint For your reference, details of the offer I reviewed appear below The proposed action makes a minuscule difference in the amount of funds seized There has been no explanation as to what service I have received for these exorbitant fees that took almost $down to about $ I did not request or authorize any services from this company and was charged without my knowledge Pencheck's response is very irrational, in that they believe that if a person owes someone money, the debt can somehow disappear or dwindle because a person is not able to, or do not want to find them The only action that will resolve this complaint is a refund of all fees and disbursement of the full amount that was owed to me when I left [redacted] Regards, [redacted]

Dear Revdex.com, Please pardon my delay in respondingI thought we had days to respond but instead have learned it is weeks Regardless, the basis of the compliant is that Mr [redacted] apparently does not understand the federal laws that control the situation in which he found himself Mr [redacted] would not be in the situation he is in had he not left a retirement account with a former employerIt is true that Mr [redacted] did not sign an agreement with usHe doesn't have toFederal law allows his former employer, who had possession of his retirement account, to transfer the accounts of missing participants like Mr [redacted] to companies like PenChecks that offer what the federal law (CFR 2550.404a-and A-3) calls a "Auto Rollover or Missing Participant IRA"I have attached a copy of the federal regs for your and Mr***'s reviewThis regs strictly control how Auto Rollover and Missing Participant IRAs work and our program is in strict compliance with those laws You may ask why do employers use the services of companies like PenChecks? Good questionMany employers have retirement plans to help their employees save for retirementSomebody has to provide recordkeeping and other required services for these plansMost employers are too busy with their own business to keep up with all the rules and reporting that is required so they hire service providers to do thisThose service providers charge the employer based on the number of employees in the planSo when an employee leaves, like Mr***, but does not take his retirement account with him, he drives up the cost of the plan for both his former employer and the remaining employeesFederal law (CFR 2550.404A-and A-3) allows employers to transfer the money of "missing participants" out of the plan in order to keep plan costs downAnd that is exactly what his former employer did Why is Mr [redacted] considered a "missing participant"? Because he didn't take his account with him when he left his former employer and/or didn't make sure his former employer had his current addressMaybe his former employer had his address but lost itIn short, he left his money behindWhy did he do that? Nobody but Mr [redacted] knowsMaybe he didn't realize he had a retirement account with this former employer? Maybe he forgot about his account? Eventually, for whatever reason, he remembered his account While his account was with PenChecks it has to be maintainedOur fees are modest20% set up fee not to exceed $100; $per month admin fee; and a distribution fee of 20% not to exceed $With respect to the reasonableness of the monthly admin fee, I invite you to check your local bank and see what they charge to maintain a savings account, which is basically what the federal law referenced above requires these account to be invested inI guarantee you it is more than $per monthMost banks charge at least double what we chargeThe set up and distribution fees cover costs associated with establishing the account and maintaining account information and tax reporting required by the federal government Because these accounts have to be held in what is basically a savings account, they earn little interestThe Federal Reserve has held interest rates to near zero for several years nowPenChecks has no control over the interest ratesAs a result, the accounts earn little interest As to the time it took to process Mr***'s distribution, I can only repeat the reason for the delayHe changed the form and that change took his distribution out of automated processing to manual processing in an attempt to reconcile his change to the form to our vendor's established proceduresThey tried to work with him as best they couldPerhaps they could've done a better job of communicating with himAs with most things, there is probably room for improvement there But in our and our vendor's defense, what Mr [redacted] wants is not realisticHe wants to be able to leave his retirement account behind and have no responsibility for it for a number of yearsRather, he wants somebody else to be responsible for his account, invest it, maintain records for it, prepare and file the 1099's and other tax reporting, all of which is required by federal law, and all of which requires, systems, people and effort, and he wants this all done for free or at least to be able to name his own price for all of thisThat is simply not possibleNo business can operate in such a mannerOur fees, which we have not raised in several years, are set by contract with his former employer, who had legal responsibility to look after Mr***'s retirement account after he left it behind Lastly, I want to address his statement that he considers this theftFor the record, in no way, shape or form is this a theft of any kind and PenChecks categorically rejects any assertion or allegation of theft of any kindMoreover, because Mr [redacted] alleges a criminal act but with no basis for such an allegation, we expect the Revdex.com to comply with its policy and not include that statement in any of its publicly available reports about PenChecks We appreciate the opportunity to respondIf the Revdex.com has any questions or would like to discuss further please do not hesitate to contact me With best regards, [redacted] , CCO PenChecks Trust

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this proposed action would not resolve my complaint For your reference, details of the offer I reviewed appear below First, there was no resolved actionThe check was not sent by the agreed upon terms and verbal deadlines were repeatedly missed (at least three times) Second, the "modified" form that is referred to repeatedly in PenCheck's response is an attempt by PenCheck to get their customers to waive 20% of their retirement as a "check processing fee" plus an addition of five years of monthly "administrative fees" charged against the accountI crossed out this portion noting that I did not agree to these termsI have never signed any agreement authorizing this company to charge these fees either at the beginning of their stewardship of my retirement funds or upon the terminationHowever, they went ahead and charged all of these fees against my account anyway This is theft in my opinion I am more appalled now at this company's business practices than when I initially filed the complaint Regards, [redacted] ***

Revdex.com of San Diegoc/o [redacted] Viewridge Ave., Suite 200San Diego, CA April 15, 2016Re: [redacted] Revdex.com # [redacted] Dear [redacted] Thank you for forwarding the above referenced complaintWe are researching this matter with our vendor, Alpha& Omega, who handles the administration of these accountsWe expect to have definitive information as to thereason for the delay in or more business days and will update and supplement this response within thattimeframe.Sincerely yours, [redacted] | Chief Compliance OfficerPenChecks TrustLa Mesa Blvd., Ste101, La Mesa, CA [redacted] @penchecks.com

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this proposed action would not resolve my complaint For your reference, details of the offer I reviewed appear below.I DID pay attention and I did not see any information about adjustments made to the amount Shame on you Penchecks for not honoring your own computer outputBy the way, that is what consumer reviews are for, knowing the type of company that you are dealing with and being knowledgeable of unfair practicesDisgusting!! [redacted]

Revdex.com: I have reviewed the response made by the business in reference to complaint ID [redacted] , and have determined that this proposed action would not resolve my complaint For your reference, details of the offer I reviewed appear below I DID pay attention and I did not see any information about adjustments made to the amount Shame on you Penchecks for not honoring your own computer outputBy the way, that is what consumer reviews are for, knowing the type of company that you are dealing with and being knowledgeable of unfair practicesDisgusting!! [redacted]

[redacted] will be submitting a response to this compliant within hours Sincerely, [redacted]

Revdex.com of San Diegoc/o *** ***Viewridge Ave., Suite 200San Diego, CA April 15, 2016Re: * *** Revdex.com # ***Dear ***Thank you for forwarding the above referenced complaintWe are researching this matter with our vendor, Alpha& Omega, who handles the administration of
these accountsWe expect to have definitive information as to thereason for the delay in or more business days and will update and supplement this response within thattimeframe.Sincerely yours,
*** *** *** ** | Chief Compliance OfficerPenChecks TrustLa Mesa Blvd., Ste101, La Mesa, CA 91942***@penchecks.com

Dear Mr***, Thank you again for your return response. There appear to be a few misconceptions you have about the nature of your account, automatic rollover IRAs in general and how PenChecks came to be the caretaker of your funds To begin with, your assertion that funds were, “seized” is an entirely inaccurate and disingenuous characterization. Additionally, you inferred that you did not request or authorize any services from PenChecks. This is true, you did not. However, your former employer, *** ***, did. The Trustees for a retirement plan have absolute authority to make these elections on behalf of missing or non-responsive former plan participants with remaining balances While it is unfortunate that you disagree with the following additional facts representing the reality of your account (and personal conduct), they are facts nonetheless ? You left a small retirement account balance with your former employer, *** *** ? You did not make any effort to have your funds moved or paid directly to you when you left their employment? You failed to respond to repeated requests from *** *** to provide distribution instructions for your account balance? You did not respond to repeated notifications from PenChecks Trust about your account? PenChecks Trust performed annual searches to try to locate you and ensure all notices were being sent to your most current address? PenChecks Trust recently found a new address for you, the third different address we have attempted to contact you at? When you finally did respond to a notice from PenChecks Trust, nearly seven years had transpired? You are unhappy that your account balance has been depleted as a result of fees that have outpaced the interest earned on your account? You have given no consideration for the fact that the past seven years has been one of the lowest historical interest rate return environments in market history. Despite this and despite strict restrictions on the types of investments that the Federal Government allows in these special types of IRA accounts, during this time that PenChecks Trust was the custodian of your account, it was able to credit you a nearly 1% return on your investment. This is vastly superior to the roughly 0.07% that an account of your size would have earned in the open market while being restricted to the same money market investment type vehicles As we indicated to you in the initial response to your complaint, when former employees cannot be located or refuse to respond to requests for information from their former employers regarding their retirement accounts, Federal law grants Plan Sponsors the ability to move smaller account balances into these special automatic rollover (or missing participant) IRA accounts. You may not appreciate this right the Federal Government has granted to your former employer but it is their right and provides them with critical operational functionality to resolve issues arising from inconsiderate former plan participants. So, while it is true that you did not request to have your account moved to an IRA with PenChecks Trust, your former employer did do so on your behalf. As a reminder, the following is an excerpt from our initial response to you about the nature of these types of accounts: The IRS and the DOL have created laws that are intended to protect the best interests of retirement plan participants. However, they recognize that assets left unclaimed in a retirement plan pose unnecessary risk and liability to plan trustees. As such, they have created these types of accounts to help alleviate this problem for plan sponsors. The IRS and DOL also realize that while these accounts are designed to preserve principle and protect the interests of former plan participants, it does cost money to establish and administer these IRA accounts until such time as these former plan participant account holders come forward or are located. Unfortunately, some account holders refuse to acknowledge this and remain upset that their funds were moved and fees were assessed to their accounts (Further details can be found by searching “Department of Labor Regulation 404a-& 404a-3”) While PenChecks prides itself on providing the best possible service to all of its account holders, it does not do so for free. When your account was a part of your former employer’s larger retirement plan, many of the costs associated with the administration were defrayed across all of the plan participants. This is not the case once your account is moved to an individual IRA. Additionally, when your account was part of the *** *** retirement plan, you may have been making personal contributions to the plan as well as, possibly, receiving company contributions from *** *** Once your account is moved to an individual IRA those contributions naturally do not continue until you can be located and thus the growth of your account may slow. The combination of these circumstances contributed to the reality that your account was depleted more by fees than it grew by interest crediting, again, despite earning your account a rate of interest that would have been nearly impossible to obtain elsewhere in the market while being subject to the same Governmental investment restrictions In a show of good faith, PenChecks Trust offered to unwind all fees associated with your account, going all the way back to the beginning of 2017, despite the fact that you have still refused to submit any benefit election information in the nearly nine months since you first responded our notices. But again, PenChecks Trust prides itself on striving very hard to provide excellent service and care to each account holder for which we maintain an IRA. Thus, we sincerely look forward to helping you claim your account and providing you with any further assistance we can. We wish you the very best in your future retirement savings endeavors Sincerely, PenChecks Trust

Dear Revdex.com,
We received this complaint on Thursday May 7, We have investigated and have a draft of our findings and conclusions which is going through Compliance review and approvalThat review and approval will be completed and forwarded to the BB by EOB Tuesday, May 12,
If you
have any questions or if there is a need for further discussion please do not hesitate to contact me
Sincerely,
*** ***, JD | Chief Compliance Officer
PenChecks Trust
La Mesa Blvd., Ste101, La Mesa, CA
direct: 619.*** | mobile: 619***
m***@penchecks.com

TO: [redacted] - Revdex.com of San Diego, Orange & Imperial Counties FR: [redacted], CCO – PenChecks Trust RE: Complaint of Matthew [redacted] – Revdex.com Complaint ID # [redacted] Date: 5/10/2016 Dear Mr. [redacted] Thank you for your email and the Complaint attached with it. Thank you for the additional time to respond. Using both IE and Google Chrome, I was unable to access the link provided for the Complaint. We very much appreciate you emailing to us a pdf of the Complaint. In reading the Complaint it appears that Mr. [redacted] comments are primarily directed at our vendor, Alpha & Omega Financial Management Consultants, Inc. (“A&O”). However, because they are our vendor we take full responsibility for any inadequate or insufficient service and will take every opportunity to help them improve our service.  Accordingly, I have investigated Mr. [redacted] complaint, and ascertained the following: 1.       A Default/Missing Participant (D/MP) IRA was set up for the Customer (i.e., Mr. [redacted] hereafter “Participant”) at PenChecks by his former employer from funds left by the Participant in his/her former employer’s retirement plan. a.       By way of background, D/MP IRAs are a special type of IRA account created and governed by federal law, 29 CFR §§2550.404a-2 and 2550.404a-3 respectively, to deal with the issue of non-responsive and lost ( aka “missing”) participants in qualified retirement plans (e.g., 401(k) plans). Notification of the establishment of the IRA is sent to the Participant at the time the IRA is established and is mailed to their last known address as provided to us by their former employer. b.      Consequently, if the former employer’s records are not up to date, and/or if the Participant fails to notify their former employer of a new address or fails to take their retirement funds with them when they leave their employer, then the Participant becomes separated from their funds. As stated above, an initial notice is sent to the Participant. Thereafter, every year we prepare and file IRS Form 5498 so that when the Participant files their tax return they will have notice of the Form 5498 (which has all of PenChecks contact information on it) and hopefully contact us and claim their funds. Moreover, every 18 months we conduct another search for the Participant and, if a new address is found, we update our records for the Participant and, prepare and file an updated IRS Form 5498. It is this process that enabled Mr. [redacted] to find and claim his funds.    2.       1/22/2016 – Customer contacts PenChecks to claim his funds. PenChecks notifies A&O the same day. Please note: a.       PenChecks uses A&O as a vendor to administer the D/MP IRA program.    b.      In the interest of full disclosure, A&O is a separate but related entity. It is not a wholly-owned subsidiary, nor does either company control the other. A&O occupies the office suite next door to PenChecks but has separate ownership, employees, etc., from PenChecks.    3.       On/about 1/23/2016 – MP Election Form is mailed to the Participant by A&O. Please note the form was mailed to Mr. [redacted] the next day. 4.       On about 2/10/2016 – Mr. [redacted] fills out and returns the MP Election Form and it is received by A&O. However, Mr. [redacted] had inadvertently returned an incomplete form. Mr. [redacted] had both traditional and Roth monies which must be accounted for separately due to the different tax treatments of these sources.  Please also note – Page 3 of the form states at the top “Distribution Processing Time may take 30-60 days from the date of receipt of your complete Missing Participant Form – IRA.” Processing is normally accomplished much more quickly. However, because there are circumstances beyond PenChecks’ and/or A&O’s control, we feel it is best practice to notify the Participant of the likely farthest range of processing time.  5.       2/18/2016 – A&O sent email confirming receipt of his distribution request. This confirmation also noted the “may take 30-60 days from date of receipt” processing time. 6.       2/18/2016 – Due to incomplete form, the request is taken out of automated processing. 7.       2/20/2016 – Altered form is assigned to [redacted] at A&O for resolution. 8.       2/25/2016 to 4/09/2016 – Series of phone calls and emails b/t A&O staff and Mr. [redacted] to explain the process, the incomplete form and, the delays that are caused by the incomplete forms, etc.  9.       4/09/2016 – Distribution request re-entered in the system for processing.   10.   4/10/2016 - Incomplete form again halts processing.   11.   4/15/2016 – Manual override entered to prevent incomplete form from interrupting processing. Checks to participant are processed and, at Participant’s request, mailed certified mail (at PenChecks’ cost) to the Participant. A&O emails Participant confirmation and tracking number for his check. 12.   4/18/2016 – Mr. [redacted] is paid out, receiving 2 checks in the amounts of $838.09 and $686.26 for the Roth and traditional sources.       Findings & Conclusions:   1.       Our vendor’s stated service standard is up to 60 days from the date of receipt of the MP Election Form, assuming all information provided by the Participant is correct, complete, etc.   2.       In Mr. [redacted] case we exceeded the service standard. However, the delay was caused by the incomplete form.   3.       Because the service standard is plainly stated and was communicated twice to Mr. [redacted] in writing, and because the delay in processing was caused by the incomplete form, we believe we have communicated openly and honestly in this matter.   PenChecks holds all customers’ funds in separate accounts from its own funds. Even if PenChecks were to close, file bankruptcy or otherwise be forced to liquidate, Missing Participants’ funds are 100% FDIC insured. And in the FDIC’s 82 year history, “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.” https://www.fdic.gov/consumers/banking/facts/   If there is a need for further discussion of if I may be of further service please do not hesitate to contact me.   With best regards, I remain,   Sincerely yours, [redacted], JD  | Chief Compliance Officer PenChecks Trust 8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942 direct: 619.600.0654  |  mobile: 619.315.9220 [redacted]@penchecks.com   |  www.PENCHECKS.com

Dear Revdex.com,
Please pardon my delay in responding. I thought we had 30 days to respond but instead have learned it is 2 weeks.
Regardless, the basis of the compliant is that Mr. [redacted] apparently does not understand the federal laws that control the situation in which he found himself.
Mr. [redacted] would not be in the situation he is in had he not left a retirement account with a former employer. It is true that Mr. [redacted] did not sign an agreement with us. He doesn't have to. Federal law allows his former employer, who had possession of his retirement account, to transfer the accounts of missing participants like Mr. [redacted] to companies like PenChecks that offer what the federal law (29 CFR 2550.404a-2 and A-3) calls a "Auto Rollover or Missing Participant IRA". I have attached a copy of the federal regs for your and Mr. [redacted]'s review. This regs strictly control how Auto Rollover and Missing Participant IRAs work and our program is in strict compliance with those laws.
You may ask why do employers use the services of companies like PenChecks? Good question. Many employers have retirement plans to help their employees save for retirement. Somebody has to provide recordkeeping and other required services for these plans. Most employers are too busy with their own business to keep up with all the rules and reporting that is required so they hire service providers to do this. Those service providers charge the employer based on the number of employees in the plan. So when an employee leaves, like Mr. [redacted], but does not take his retirement account with him, he drives up the cost of the plan for both his former employer and the remaining employees. Federal law (29 CFR 2550.404A-2 and A-3) allows employers to transfer the money of "missing participants" out of the plan in order to keep plan costs down. And that is exactly what his former employer did.
Why is Mr. [redacted] considered a "missing participant"? Because he didn't take his account with him when he left his former employer and/or didn't make sure his former employer had his current address. Maybe his former employer had his address but lost it. In short, he left his money behind. Why did he do that? Nobody but Mr. [redacted] knows. Maybe he didn't realize he had a retirement account with this former employer? Maybe he forgot about his account? Eventually, for whatever reason, he remembered his account.
While his account was with PenChecks it has to be maintained. Our fees are modest. 20% set up fee not to exceed $100; $3.45 per month admin fee; and a distribution fee of 20% not to exceed $60. With respect to the reasonableness of the monthly admin fee, I invite you to check your local bank and see what they charge to maintain a savings account, which is basically what the federal law referenced above requires these account to be invested in. I guarantee you it is more than $3.45 per month. Most banks charge at least double what we charge. The set up and distribution fees cover costs associated with establishing the account and maintaining account information and tax reporting required by the federal government.
Because these accounts have to be held in what is basically a savings account, they earn little interest. The Federal Reserve has held interest rates to near zero for several years now. PenChecks has no control over the interest rates. As a result, the accounts earn little interest.
As to the time it took to process Mr. [redacted]'s distribution, I can only repeat the reason for the delay. He changed the form and that change took his distribution out of automated processing to manual processing in an attempt to reconcile his change to the form to our vendor's established procedures. They tried to work with him as best they could. Perhaps they could've done a better job of communicating with him. As with most things, there is probably room for improvement there.
But in our and our vendor's defense, what Mr. [redacted] wants is not realistic. He wants to be able to leave his retirement account behind and have no responsibility for it for a number of years. Rather, he wants somebody else to be responsible for his account, invest it, maintain records for it, prepare and file the 1099's and other tax reporting, all of which is required by federal law, and all of which requires, systems, people and effort, and he wants this all done for free or at least to be able to name his own price for all of this. That is simply not possible. No business can operate in such a manner. Our fees, which we have not raised in several years, are set by contract with his former employer, who had legal responsibility to look after Mr. [redacted]'s retirement account after he left it behind.
Lastly, I want to address his statement that he considers this theft. For the record, in no way, shape or form is this a theft of any kind and PenChecks categorically rejects any assertion or allegation of theft of any kind. Moreover, because Mr. [redacted] alleges a criminal act but with no basis for such an allegation, we expect the Revdex.com to comply with its policy and not include that statement in any of its publicly available reports about PenChecks.
We appreciate the opportunity to respond. If the Revdex.com has any questions or would like to discuss further please do not hesitate to contact me.
With best regards,
[redacted], CCO
PenChecks Trust

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.
The proposed action makes a minuscule difference in the amount of funds seized.  There has been no explanation as to what service I have received for these exorbitant fees that took almost $400 down to about $25.  I did not request or authorize any services from this company and was charged without my knowledge.  Pencheck's response is very irrational, in that they believe that if a person owes someone money, the debt can somehow disappear or dwindle because a person is not able to, or do not want to find them.  The only action that will resolve this complaint is a refund of all fees and disbursement of the full amount that was owed to me when I left [redacted]
Regards,
[redacted]

PenChecks will submit a response to Mr. [redacted]'s follow up comments within 48 hours.
Sincerely,
[redacted]

TO: [redacted] - Revdex.com of San Diego, Orange & Imperial Counties
FR: [redacted], CCO – PenChecks Trust RE: Complaint of Matthew [redacted] – Revdex.com Complaint ID # [redacted] Date: 5/10/2016 Dear Mr. [redacted] Thank you for your email and the Complaint attached with it. Thank you for the additional time to respond. Using both IE and Google Chrome, I was unable to access the link provided for the Complaint. We very much appreciate you emailing to us a pdf of the Complaint. In reading the Complaint it appears that Mr. [redacted] comments are primarily directed at our vendor, Alpha & Omega Financial Management Consultants, Inc. (“A&O”). However, because they are our vendor we take full responsibility for any inadequate or insufficient service and will take every opportunity to help them improve our service.  Accordingly, I have investigated Mr. [redacted] complaint, and ascertained the following: 1.       A Default/Missing Participant (D/MP) IRA was set up for the Customer (i.e., Mr. [redacted] hereafter “Participant”) at PenChecks by his former employer from funds left by the Participant in his/her former employer’s retirement plan. a.       By way of background, D/MP IRAs are a special type of IRA account created and governed by federal law, 29 CFR §§2550.404a-2 and 2550.404a-3 respectively, to deal with the issue of non-responsive and lost ( aka “missing”) participants in qualified retirement plans (e.g., 401(k) plans). Notification of the establishment of the IRA is sent to the Participant at the time the IRA is established and is mailed to their last known address as provided to us by their former employer. b.      Consequently, if the former employer’s records are not up to date, and/or if the Participant fails to notify their former employer of a new address or fails to take their retirement funds with them when they leave their employer, then the Participant becomes separated from their funds. As stated above, an initial notice is sent to the Participant. Thereafter, every year we prepare and file IRS Form 5498 so that when the Participant files their tax return they will have notice of the Form 5498 (which has all of PenChecks contact information on it) and hopefully contact us and claim their funds. Moreover, every 18 months we conduct another search for the Participant and, if a new address is found, we update our records for the Participant and, prepare and file an updated IRS Form 5498. It is this process that enabled Mr. [redacted] to find and claim his funds.    2.       1/22/2016 – Customer contacts PenChecks to claim his funds. PenChecks notifies A&O the same day. Please note: a.       PenChecks uses A&O as a vendor to administer the D/MP IRA program.    b.      In the interest of full disclosure, A&O is a separate but related entity. It is not a wholly-owned subsidiary, nor does either company control the other. A&O occupies the office suite next door to PenChecks but has separate ownership, employees, etc., from PenChecks.    3.       On/about 1/23/2016 – MP Election Form is mailed to the Participant by A&O. Please note the form was mailed to Mr. [redacted] the next day. 4.       On about 2/10/2016 – Mr. [redacted] fills out and returns the MP Election Form and it is received by A&O. However, Mr. [redacted] had inadvertently returned an incomplete form. Mr. [redacted] had both traditional and Roth monies which must be accounted for separately due to the different tax treatments of these sources.  Please also note – Page 3 of the form states at the top “Distribution Processing Time may take 30-60 days from the date of receipt of your complete Missing Participant Form – IRA.” Processing is normally accomplished much more quickly. However, because there are circumstances beyond PenChecks’ and/or A&O’s control, we feel it is best practice to notify the Participant of the likely farthest range of processing time.  5.       2/18/2016 – A&O sent email confirming receipt of his distribution request. This confirmation also noted the “may take 30-60 days from date of receipt” processing time. 6.       2/18/2016 – Due to incomplete form, the request is taken out of automated processing. 7.       2/20/2016 – Altered form is assigned to [redacted] at A&O for resolution. 8.       2/25/2016 to 4/09/2016 – Series of phone calls and emails b/t A&O staff and Mr. [redacted] to explain the process, the incomplete form and, the delays that are caused by the incomplete forms, etc.  9.       4/09/2016 – Distribution request re-entered in the system for processing.   10.   4/10/2016 - Incomplete form again halts processing.   11.   4/15/2016 – Manual override entered to prevent incomplete form from interrupting processing. Checks to participant are processed and, at Participant’s request, mailed certified mail (at PenChecks’ cost) to the Participant. A&O emails Participant confirmation and tracking number for his check. 12.   4/18/2016 – Mr. [redacted] is paid out, receiving 2 checks in the amounts of $838.09 and $686.26 for the Roth and traditional sources.       Findings & Conclusions:   1.       Our vendor’s stated service standard is up to 60 days from the date of receipt of the MP Election Form, assuming all information provided by the Participant is correct, complete, etc.   2.       In Mr. [redacted] case we exceeded the service standard. However, the delay was caused by the incomplete form.   3.       Because the service standard is plainly stated and was communicated twice to Mr. [redacted] in writing, and because the delay in processing was caused by the incomplete form, we believe we have communicated openly and honestly in this matter.   PenChecks holds all customers’ funds in separate accounts from its own funds. Even if PenChecks were to close, file bankruptcy or otherwise be forced to liquidate, Missing Participants’ funds are 100% FDIC insured. And in the FDIC’s 82 year history, “No depositor has ever lost a penny of insured deposits since the FDIC was created in 1933.” https://www.fdic.gov/consumers/banking/facts/   If there is a need for further discussion of if I may be of further service please do not hesitate to contact me.   With best regards, I remain,   Sincerely yours, [redacted], JD  | Chief Compliance Officer PenChecks Trust 8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942 direct: 619.600.0654  |  mobile: 619.315.9220 [redacted]@penchecks.com   |  www.PENCHECKS.com

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and have determined that this proposed action would not resolve my complaint.  For your reference, details of the offer I reviewed appear below.I DID pay attention and I did not see any information about adjustments made to the amount.  Shame on you Penchecks for not honoring your own computer output. By the way, that is what consumer reviews are for, knowing the type of company that you are dealing with and being knowledgeable of unfair practices. Disgusting!!
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