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PenChecks Trust Reviews (34)

Revdex.com of San Diegoc/o [redacted]4747 Viewridge Ave., Suite 200San Diego, CA 92123 April 15, 2016Re: [redacted] Revdex.com # [redacted]Dear [redacted]Thank you for forwarding the above referenced complaint. We are researching this matter with our vendor, Alpha&...

Omega, who handles the administration of these accounts. We expect to have definitive information as to thereason for the delay in 1 or 2 more business days and will update and supplement this response within thattimeframe.Sincerely yours,
[redacted] | Chief Compliance OfficerPenChecks Trust8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942[redacted]@penchecks.com

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

+1

[redacted] will be submitting a response to this compliant within 48 hours.
Sincerely,
[redacted]

REGARDING Revdex.com COMPLAINT #[redacted]Dear Revdex.com,We appreciate the time Mr. [redacted] took to reach out to the Revdex.com for assistance in locating his payout. The following is a detailed history of Mr. [redacted]’s account and the correspondence pertaining to his account that took place between PenChecks Trust and...

Mr. [redacted].On Thursday, May 11, 2017 PenChecks Trust received funding to establish a Missing Participant IRA for Mr. [redacted]. Pursuant to Department of Labor Regulation 404a-2 a company may establish anIndividual Retirement Account (IRA) for a former employee who cannot be located or refuses to respond to distribution requests from the plan sponsor. Subject to certain maximum amounts for ongoing plans, the Federal government gives plan sponsors the ability to do this so they will not be perpetually shackled with the fiduciary responsibility of former employee accounts who are no longer with the company and have not made arrangements to move their retirement funds.Per our standard operating procedure, PenChecks Trust immediately set up an IRA for Mr. [redacted] and sent out a welcome notice with instructions how Mr. [redacted] could claim his funds. Mr. [redacted] received this notice and submitted an online benefit election on Tuesday, May 16, 2017. Most IRA distributions from PenChecks are processed within 1 week. However, because of the nature of the processing and identity verification that is required by the Federal government, Mr. [redacted] was informed when he submitted his benefit election, that his account payout may take 2 - 4 weeks. Mr. [redacted] acknowledged this and requested a lump sum distribution be sent via wire to his bank upon the completion of processing.On Wednesday, May 31, 2017 (15 days after submitting his request for distribution), Mr. [redacted] called to inquire about the status of his account on. He was informed that his account was in process and his wire would be completed the following week.On Monday, June 5th, 2017 Mr. [redacted] called to verify that his wire would be going out that week. He was informed that it would be going out on Wednesday, June 7th.On Wednesday, June 7, 2017 (23 days after submitting his request for distribution), PenChecks Trust processed a wire to Mr. [redacted]’s bank account.Understandably, Mr. [redacted] was very eager to receive his funds and began making it a habit of calling repeatedly, many times within minutes of a previous call, to inquire about the status of his distribution. On Wednesday, June 7th, Mr. [redacted] called three times. All three of his calls were returned to assure him that his funds were wired to his bank.It is important to understand that PenChecks Trust has no control over funds once they are wired to a receiving institution. Many times, due to the nature of funds or the particular banking habits of individual account holders, receiving banks will hold electronically transferred funds for verification (much like they sometimes do with physical checks). Such was the case with Mr. [redacted]’s bank. This was explained to Mr. [redacted] and he was informed that he would need to contact his bank for details about the delay crediting his account. Additionally, while explaining to Mr. [redacted] possible reasons for a receiving bank to delay crediting of funds, the PenChecks account specialist noted that inaccurate account or routing numbers could cause a delay. He was also informed that if an incorrect account orrouting number was relayed to his bank in error by PenChecks that we would immediately resubmit the wire at no additional charge and refund him all of his original wire fees. But again, nothing could be done until his bank rejected the first wire.On Wednesday, June 7, 2017, apparently unhappy with the facts of his situation, Mr. [redacted] took to submitting a complaint to the Revdex.com asserting that PenChecks had mishandled his information and transmitted the wrong routing number. This assertion is entirely untrue as our account specialists confirmed for Mr. [redacted] the wiring instructions that were transmitted to PenChecks by him and the wiring instructions that PenChecks transmitted to his bank.Mr. [redacted] proceeded to call PenChecks four more times on Thursday, June 8, 2017 at 11:25 AM, 11:28 AM, 11:54 AM and again at 4:15 PM. An account specialist return Mr. [redacted]’s calls and verified for him that the funds had been wired and the delay was on his bank’s end and that, unfortunately, there was nothing PenChecks could do unless the wire was rejected by his bank.Mr. [redacted] then called five more times on Friday, June 9, 2017 at 8:46 AM, 8:55 AM, 9:18 AM, 9:26 AM and again at 9:31 AM. Again, a PenChecks account specialist returned his calls. Mr. [redacted] made several requests to have his funds reissued in a form other than a wire. He was informed that we would be happy to reissue his funds and PenChecks would waive any associated fees but, again, we could not do so until his receiving bank rejected or returned the original wired funds.Mr. [redacted]’s bank never rejected his wire. Mr. [redacted] never contacted PenChecks Trust again. We assume his bank released the funds to his account on Friday, June 9th or shortly thereafter as his pattern of repeated phone calls and demands for his funds to be reissued ceased on June 9th.We regret that Mr. [redacted]’s receiving bank held his funds despite the fact that he was obviously very anxious to receive money. This unfortunate circumstance was beyond PenChecks’ control, nor could we do anything to expedite the receiving institutions processing. At PenChecks Trust we do everything we can to ensure the fastest and most accurate processing of each distribution request, as we did in the case for Mr. [redacted]. It is most unfortunate that Mr. [redacted] took to submitting a complaint to the Revdex.com on the same day he was repeatedly told his distribution would, and did, process.We are happy to answer any questions or provide additional details pertaining to Mr. [redacted]’s distribution.Sincerely, 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 action. The 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 account. I crossed out this portion noting that I did not agree to these terms. I 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 termination. However, 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:
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!!
[redacted]

Dear Revdex.com and Ms. [redacted], The customer complaint ID [redacted] delivered to us on 2/10/2017 has been forwarded to my department for review and response. Accordingly, my department is gathering information and investigating this matter internally as part of our response. While we...

review these matters as quickly as possible, the gathering and review of information necessary to provide a full, complete and accurate response takes a few days to complete. Accordingly, we respectfully request an additional 3 business days from today, 2/23/2017, and anticipate submitting our review and response on/before Tuesday 2/28/2017. Kindly advise if this is acceptable and please do not hesitate to contact me directly if you have any questions or concerns. My contact info appears below. With best regards, [redacted], JD  | Chief Compliance Officer PenChecks Trust8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942direct: 619.600.0654  |  mobile: 619.315.9220m[redacted]@penchecks.com   |  www.PENCHECKS.com

Revdex.com:
I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution would be satisfactory to me.  I will wait for the business to perform this action and, if it does, will consider this complaint resolved.
Regards,
[redacted]

The company exhausted an IRA account with a low balance through fees. Refused to consider any changes or waive fees in deference to the original account balance (less than $150) that had not grown over 20 years. Not people friendly, policy friendly,

Review: Years ago, I worked for a company, [redacted] Inc, in Louisiana for 7 years, and entered into it my 401K payments. For reasons unknown, the accounts were closed and payments were sent out. I had moved so the check sent was not collected. I reached out to IRS as I saw that I had payed taxes on the closed amount - they sent me the name of [redacted] and I immediately called them - this was around 2 years ago-

[redacted] denied that I had any money in their bank. I gave them as much information as I could- everything! Social/ company name- my name etc.

They said nothing and said they didn't have any of my money. After years!! Of searching through attorneys, [redacted], IRS, they all pointed me back to [redacted]. Finally, a company called [redacted], Inc called [redacted] to prove that the money was indeed mine me gave them the amount of 690$ To pay me off. I finally got them to send me a release ot recieve the check- I got the chdck today- it's $290. When I asked why, they said the had to charge me for the last couple of years that my money was being held. BUT I CALLED THEM over 2 years ago and knew it was mine- and they couldn't seem to "FIND" it. This is NOT RiGHT!!! When they called, they said oh were sorry, it was indeed under [redacted] plan- that's the first piece of information I gave them. I do want to say that the woman who helped me for the last couple of years was professional and great to talk to- her name is [redacted]. But my complaint is directed at [redacted]. I worked HARD TO put that money in and when I knew it was in their hands, they couldn't release it. And one 2 'or more years passed, they deducted so much, that I am not going to settle for this. It's my 401 K!! You don't take money from someone's 401k. I initially had 1200$ in there and by the time it was paid out to [redacted] and when I found it, it was $690. I can understand a fee off of that amount, but $290 is what I got???? Help me.Desired Settlement: I want my amount back.

It was 690$ I got $290 today-

That's 400$ they charged me!!!

I want a check for 310$ to settle this. $90 is more than enough to "hold MY MONEY" when they were the ones who couldn't figure things out.

Business

Response:

[redacted] will be submitting a response to this compliant within 48 hours.

Sincerely,

+2

Review: This company holds a retirement account from a past employer and has not released funds for a rollover after almost two months of contacting them. I've filled out the paper work, called, and all I ever get as a response is 'soon' . The other two accounts that I had rolled over (from non-related companies) took about two days after completing paperwork. I'm afraid they may be insolvent, and I may have lost my retirement.Desired Settlement: I would like the funds released and an explanation and apology of why it has taken two months.

Business

Response:

Dear Revdex.com,

We received this complaint on Thursday May 7, 2015. We have investigated and have a draft of our findings and conclusions which is going through Compliance review and approval. That review and approval will be completed and forwarded to the BB by EOB Tuesday, May 12, 2015.

If you have any questions or if there is a need for further discussion please do not hesitate to contact me.

Sincerely,

[redacted], JD | Chief Compliance Officer

PenChecks Trust

8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942

direct: 619.[redacted] | mobile: 619[redacted]

m[redacted]@penchecks.com

Business

Response:

MEMOTO: [redacted], Arbitration & Mediation Specialist - Revdex.com of San Diego, Orange & Imperial CountiesFR: [redacted], CCO – PenChecks TrustRE: Complaint of [redacted] F. [redacted] – Revdex.com Complaint ID # [redacted]Date: 5/12/2015Dear Ms. [redacted],Thank you for your email of 5/7/2015 and the Complaint attached with it. The Complaint is dated 4/4/2015. However, due to issues with both the Revdex.com’s and PenChecks’ systems, PenChecks did not receive the Complaint until 5/7/2015. Using both IE and Google Chrome, we were 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]’s 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]’s complaint, and ascertained the following:1. 12/28/2009 – A Default/Missing Participant (D/MP) IRA is set up for the Customer (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. 1/29/2015 – 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. 1/30/2015 – MP Election Form is mailed to the Participant by A&O. Please note the form was mailed to Mr. [redacted] the next day.4. 2/10/2015 – Mr. [redacted] promptly fills out and returns the MP Election Form and it is received by A&O. However, Mr. [redacted] had crossed out the fee disclosure in section F of the MP Election Form. Please see Missing Participant Election Form, attached. With respect to this form please note:a. Any change or alteration to the form, or incomplete or inaccurate information provided by the Participant (e.g., Mr. [redacted]) slows down the process because the form must be taken out of automated processing and must be processed manually in order to resolve alterations to the form, incomplete or inaccurate data. This can significantly slow down processing.b. 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, in 5 to 10 business days, or less. 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.c. Lastly, please note that the fee disclosure is required by federal law, 29 CFR §2550.408(b)(2) and §2550.404a-5, and cannot be altered by the Participant. At this point, A&O must work with the Participant to resolve the issue.5. 2/13/2015 – A&O sent email confirmation to Mr. [redacted] confirming receipt of his distribution request. This confirmation also noted the “may take 30-60 days from date of receipt” processing time.6. 2/18/2013 – Due to alteration of the form, the request is taken out of automated processing.7. 2/20/2015 – Altered form is assigned to [redacted] at A&O for resolution.8. 2/25/2015 to 4/09/2015 – Series of phone calls and emails b/t A&O staff and Mr. [redacted] to explain the process, the altered form and, the delays that are caused by altered forms, etc.9. 4/09/2015 – Distribution request re-entered in the system for processing.10. 4/10/2105 - Altered form again halts processing.11. 4/15/2015 – Manual override entered to prevent altered form from interrupting processing. Check to participant is cut 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. 4/27/2015 – Mr. [redacted] requests “Could you please provide me a register with all transactions while my retirement was in Alpha & Omega’s / PenCheck’s stewardship (including a break-down of fees and interest)? I have never received one for my records.”13. 4/29/2015 – Account Summary is sent to Mr. [redacted].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]’s case we exceeded the service standard by 3 calendar days (2/10/2015 to 4/15/2015 = 63 calendar days). However, the delay was caused by alteration of the form by the Participant (Mr. [redacted]).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 his alteration of the form, we believe we have communicated openly and honestly in this matter.4. Lastly, we want to address the following statements attributed to Mr. [redacted]:The other two accounts that I had rolled over (from non-related companies) took about two days after completing paperwork. I’m afraid they may be insolvent, and I may have lost my retirement. (Emphasis added)Two clarifications with respect to the statement above. First, providing correct, complete and unaltered forms is key. Failure to do so slows down the process. Secondly, at no time were Mr. [redacted]’s funds at risk. 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 OfficerPenChecks Trust8580 La Mesa Blvd., Ste. 101, La Mesa, CA 91942direct: 619.[redacted] | mobile: 619[redacted]@penchecks.com | www.PENCHECKS.com

Consumer

Response:

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 action. The 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 account. I crossed out this portion noting that I did not agree to these terms. I 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 termination. However, 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,

Consumer

Response:

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 action. The 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 account. I crossed out this portion noting that I did not agree to these terms. I 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 termination. However, 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,

Business

Response:

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

Sincerely,

Business

Response:

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

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Description: Retirement Planning Service

Address: 8580 La Mesa Blvd #101, La Mesa, California, United States, 91942

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