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Dwayne B.
Dwayne B., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 32154
Experience:  Practicing for over 20 years and handled many cases and trials for consumers.
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My Roth IRA account was closed without notification and the

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My Roth IRA account was closed without notification and the brokerage sent 10% of my portofolio to the IRS and charged me a close-out fee, several securities were sold at a loss. The brokerage informed me that they did this because I called 3 months ago and asked to change my address to a PO box because I was being sent oversees by my US company. They said that the agent i spoke to at the time flagged my acount for review. I asked why I wasn't notified that there was a problem and they reported that they sent notifications to my old address (after I reported that my address had changed). Do I have any recourse here?
Hello and thank you for contacting Just Answer. I am an expert here and I look forward to assisting you today. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification.

Yes, you likely have recourse. However, you are going to have to get a local attorney to review your brokerage agreement to see what it says in it.

Amy broker agreements have choice of venue and choice of law provisions, mandatory arbitration clauses, some even have a limitation of damages clause.

In a case like this you would likely sue for, at least, breach of contract although you could potentially also have a case for professional negligence aka malpractice.

You will also want to let the local lawyer review any and all of the paperwork you received because there could even be something in there that justified them closing the account, although I can't imagine what it would be.

Please ask any follow up questions in this thread.
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