ComplaintsforuDirect IRA Services LLC

• Initial Complaint

  04/17/2023

  Complaint Type:

  Sales and Advertising Issues

  Status:

  Answered

  More info

  In trying to close two *** accounts, I was told I had to do a valuation for each and that the valuation contractor had to be paid with the *** accounts. So I used one of the valuation contractors uDirect suggested. They told me the exact amount I had to send to fund the *** accounts in order to (1) pay the valuation contractor and (2) close the account, which I did. They never paid the valuation contractor. When I sent them the invoices from the valuation contractor to pay them, they said the account is closed and I have to pay the valuation contractor directly, even though I sent them money already to pay the valuation contractor. They said the money I sent went to "extra fees" that they had never previously told me about.

  

  Business response

  04/19/2023

  When you signed your application with us for both the **** and Traditional accounts you acknowledged the requirements of maintaining a minimum account balance of $325 and to pay the annual fees of $275 when due.  The account has not maintained the $325 minimum account balance, in addition the annual fee payments have not been paid for the past 3 years.  These are self-directed ***s, and the onus is on the account holder to maintain their respective accounts in a timely manner.  Since the annual fees had not been paid, they were deducted from the contributions you made to both accounts.  The accounts were also liable for the termination fee of $175 which was waived for you.
   
  uDirect is certainly happy to readdress the issue.  Please provide us with documentation that supports you did maintain the payments on both accounts.
   
  In the meantime, the fees were deducted based on your signed Terms and Conditions of the account.
   
  As for the payment of the current invoices, you will have to pay them directly from your personal funds since the *** no longer holds the assets and is closed per your request.
  
  

• Initial Complaint

  05/02/2022

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  I am requesting for the Funds from my *************** to be transferred to Fidelity. This request was initiated on March 31st, 2022. The funds to be transferred to Fidelity is $ **********. ********************* is the Funding Manager, and she confirmed the money was set to be transferred on or around middle of April to Fidelity custodian.On May 1st, I emailed ***** as to why there is a delay in the transfer of my **** funds and she stated she will look into it and get back to me. I have not heard from her. It is May 2, ************************************************************ and spoke to ***** from *************************, the custodian for UDirect *** and he stated that the funds were still not transferred to Fidelity, and he asked me to leave a message for *****. I called Udirect and try to speak to *********************, but she was not available. I spoke to *** at UDirect about my **** Funds, and he could not help me and has no information as to why my request to have my **** funds transferred to Fidelity was not done. Please investigate this urgent matter for me and the reason why UDirect *** is not following my request to have my **** funds transferred to Fidelity.Thank you for your time and consideration.

  

  Business response

  05/09/2022

  We regret your dissatisfaction with our company.  I understand that transferring out of funds can be an arduous process.  However, the security protocol we put in place to review all transfer out requests does take time.  This is for your protection to be certain we are sending funds to the appropriate accounts, and that it's not an attempt to defraud your account.  The documents may have been initially submitted to Fidelity on 3-31-22 but Fidelity took until 4-12-22 to sign the documents based on the signature date provided by Fidelity on the transfer out documentation.
  
  It took Fidelity 12 days to process your request, a hard copy of the forms were mailed to the trust company and a faxed copy was received at uDirect IRA Services on 4-18-22.  uDirect is the contact for your account and processes the documents as they relate to all account holders.   The document was processed by uDirect on 4-19-22 within 24 hours of receipt. 
  
  The compliance department has been reviewing and verifying the transaction and has processed the request today.  We typically state a 3 to 5 business turnaround time for most transactions, however in some instances things can take a bit longer to process based on the order received.  The documents were processed on 4-19-22 with a funding date of 5-3-22.  This process took 10 business days. 
  

• Initial Complaint

  02/04/2022

  Complaint Type:

  Billing Issues

  Status:

  Answered

  More info

  I contacted UDirect about an investment. The company offered to review the investment before I moved my funds to them. However, they required that I open an account before they would review it. When I opened the account, they quickly used the application documents to pull $75,000 from my existing *** account. When I realized that, I immediately contacted my *** Custodian to put a hold on, but by then it was too late. I immediately contacted UDirect to seek a resolution. I spoke with ********************* in their ************ who said they would have to process the transfer of funds back. Several days later UDirect returned $74,810 and closed my account. When I asked about the difference, ***** said they deducted $190 in fees. I asked if I could pay those fees separately so that the entire $75,000 would remain in my ***. However, ***** stated that they closed my account, and she refused to do anything else. And when I explained how UDirect had treated me unfairly from the start, she kept repeating that by completing the account application, I gave them complete authority to do what they did. I pointed out that what they did was improper. They failed to communicate properly their actions which harmed me. They failed to advise me in advance the fees to be taken out when returning the funds and they forced me to take a 60-day rollover to get the funds back right away. These are obvious unethical business actions. After they had wronged me, I gave them the opportunity to do the right thing and make whole the $75,000 in *** funds that they should not have touched. ***** revealed that she is the owner of the company and she would do nothing else to help before hanging up. For these reasons, the BBB, the financial industry, and the consumer need to be fully warned about ********************* and UDirect's unscrupulous, improper business activities. Hopefully, others will be fully advised so they won't have to go through the pain and hassle as I have in dealing with her and her company.

  

  Business response

  02/07/2022

  ************ provided written, signed authorization for us to transfer funds from her account. Her funds were returned to her upon request.  Her comments above are exaggerated accusations.
  uDirect advised ************ that if he did not want to have funds transferred until the asset was approved to NOT send the Transfer Request Forms in with the applications.  Instead, he sent signed forms and the transfers were processed.
  ************ and his family provided written permission for the transfer of funds. He received a call from ****** advising him of the transfer requests made for all 5 family members.  The funds for ************ were already in process, however the other 4 were stopped.
  
  uDirect advised ************ that since neither our custodian nor ****** could cancel the transfer he would need to do a transfer-out, back to ******. ************ replied the investment had to fund in 3 business days and to send his funds back to ******.  uDirect advised ************ that was not going to happen within the timeframe he mentioned and provided him with the option of a 60 day rollover to expedite his request.
   At this point uDirect provided withdrawal instructions.
  ************ withdrew funds as a 60 day rollover and funds were wired to him personally.  When the wire was sent, he observed the termination fees.These fees were disclosed to ************ on the Fee Disclosure he signed at the time of account origination.
  uDirect has signed disclosures for all fee transfers and fees assessed.
  ************ said he wanted to pay the fees from outside the account funds, however the account was already closed, and the funds disbursed to ************ on 1-26-22. uDirect explained to ************ twice the reason for the fees and explained they would not be waived.  uDirect IRA Services fulfilled the requests of ************ and *********************.  The couple submitted applications, transfer request forms, IDs and tax forms to open these accounts. uDirect processed their requests.
  

  Customer response

  02/11/2022

  Who at uDirect provided THIS inaccurate response? Lets know whos hiding because these exaggerated accusations are factual whether ********************* the owner chooses to ignore. These truths speak to how uDirect conducts its day-to-day operations. Consumers must be forewarned about where NOT to place their trust and hard-earned money. In reality, uDirect did NOT advise to not send the Transfer Request Forms. In fact, the following is an excerpt from uDirects explicit instructions: We need these application pages returned: Intake form, Application page, Page #3, The Fee Schedule Signature page, TRANSFER REQUEST FORM and the Proof of Identity form. uDirect required ALL these forms for opening the account. While I complied so that uDirect would review the investment, their focus was NOT on the review, but on repeating that I send in the TRANSFER REQUEST FORM. When they began taking my funds before reviewing the investment, I confronted them. They couldve acted swiftly to halt that transfer. But NO. They took the funds, they dragged their feet in returning it. I called uDirect daily to get help, but the communication was horrible. Finally, I found $190 was missing from the funds. After I asked, I got this from *****, The account was opened and funded based on the documents provided to us, therefore the termination fee applies.  Such lack of consideration that they orchestrated the account opening and funding. And notice that if they would take time to read the application forms they force clients to fill out, they would have seen on the Fee Schedule Signature page the box is checked off I will pay the fees directly, and NOT deduct fees from my account. So what happened? What prompted uDirect to deduct fees from my account?

  

  Business response

  02/11/2022

  The account holders were assessed fees that they agreed to when they opened their accounts.  We have their signed disclosures.  Except for the pre-disclosed and agreed-upon fees, all monies have been returned to the complainants.

  Customer response

  03/04/2022

  UDIRECT, the company owned by *********************, misled me into opening an account so the investment can be reviewed. Under her supervision, they wasted no time taking my funds. Rather than reverse all of that nonsense and put the funds back, they elected to deduct fees directly out of my account. As stated before, the Agreement does NOT say Deduct fees from my account. But they went ahead anyways and deducted fees directly from my account. So I did not receive all of my *** funds back. And if ********************* believes shes following process, which shes not, how about she show those signed disclosures and get to the bottom of whats obviously breach of contract? Or would she prefer lawyers spell that out for her?

*Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business. ↩