Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. 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.

• Initial Complaint

  Date:03/21/2023

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Betterment fraudulently withdrew $903.96 from our bank on 7/11/2022. This was discovered by ** during an internal audit. On 3/3/2023. We raised the issue with Betterment asking them for an explanation of this fraudulent transaction. It's been 3 weeks since we originally brought up the issue with them. After my initial 3 unanswered emails I finally got a response saying they were "looking into it" over a week ago after I threatened to report them. They've since ignored subsequent emails asking for a status update into the funds they've stolen from us. I'm filing a complaint with BBB today because of their unprofessional behavior and lack of common courtesy to even provide basic status updates of their supposed "investigation" when asked.

  Business Response

  Date: 03/22/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

• Initial Complaint

  Date:03/20/2023

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I requested a refund of my employer sponsored and auto enrolled 401k. Per the Secure 2.0 guidelines "Of course, people can always opt-out (which is not common), and the SECURE Acts provision stipulates that people must be able to get a refund of any automatic contributions within 90 days." Betterment is refusing to refund my contributions. I am well within the 90days of the first contribution. Additionally, betterment engages in false or misleading emails regarding accounts.

  Business Response

  Date: 03/21/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 03/27/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  They did not rectify the issue. By merely saying it is resolved does not mean it is. They are not holding true to the statements made on their website. I am not satisfied with the service received and want a refund on the fees charged. The company states that the statement does not apply to me? I am requesting that the BBB lower their ranking. 

   

   

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  *********************
  
  
  
  
   
  

  Business Response

  Date: 02/21/2025

  Dear *** ****, 

  We are following up on your last correspondence on this matter. We understand it fell short of your expectations. While we addressed your comments directly and outside of the filing with the Better Business Bureau, we wanted to make sure we also responded more fully to this matter. 

  You inquired about receiving a refund for your former employer-sponsored and auto-enrolled 401(k), citing the SECURE 2.0 guidelines regarding the ability to receive a refund of automatic contributions within 90 days. However, we want to clarify that this provision does not apply to 401(k) or HSA accounts.

  Our team explained the available termination distribution options that would be accessible once your employer updated your employment status. However, we did not receive a response from your employer regarding these options and you continued to request a refund. While we regret any misunderstanding, we must adhere to the plans policies, the direction of your employer as the plan sponsor, and regulatory requirements.

  We regret that we were unable to come to a mutual resolution regarding this matter. Additionally, we want to clarify that Betterment is committed to providing accurate and transparent information. 

  If theres anything else we can assist with, please dont hesitate to reach out.

  Betterment LLC 
  

  
  

• Initial Complaint

  Date:03/16/2023

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I was recently searching for a web application by which to organize my finances, something similar to Mint, Quicken, YNAB, etc. I was steered to Betterment by an internet search. I opened an account and started inputting my personal financial accounts. Upon realizing this was a bank and not a management platform I requested that they delete my personal account information. This is not needed by them as I did not open any financial account with them. They refuse to do so.

  Business Response

  Date: 03/20/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.

  Customer Answer

  Date: 03/21/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  [Your Answer Here]

   

   They did not resolve anything. They have told me they will not delete my personal banking information including account numbers and routing numbers. This is beyond unacceptable.

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  *********************
  
  
  
  
   
  

  Business Response

  Date: 02/21/2025

  Dear *** ****, 

  We are following up on your last correspondence on this matter. We understand it fell short of your expectations. While we addressed your comments directly and outside of this filing with the Better Business Bureau, we wanted to make sure we also responded more fully to this matter. 

  To be clear, Betterment is not a bank. As an investment adviser and broker-dealer, Betterment LLC and Betterment Securities are required by federal law and regulations to collect and retain personal information about its customers, regardless of whether the account was funded. 

  While federal law restricts our ability to delete most customer information, please rest assured that Betterment does not sell customer data. We are deeply committed to maintaining the privacy and security of our customers information. You can find more details about how we collect, use, and protect personal information in our Privacy Policy, which outlines our commitment to not selling customer data to any third parties. 

  I understand this may not fully resolve your concerns and I sincerely regret any frustration this has caused. However, please know that your information will be handled with the utmost care and security. If theres anything else I can clarify or assist with, please dont hesitate to reach out.

  Betterment LLC 

• Initial Complaint

  Date:03/07/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I lost access to my account weeks ago. Last Friday, I called in to Betterment and had four conversations over at least an hour. I was told I would shortly receive an email confirming my account was restored. I waited over four hours. The next day, I still did not receive the email. I sent numerous emails informing them I wanted immediate access and that I plan to close my account due to poor customer service. I also requested to hear from a manager. It is now late on Monday. I have not heard from anyone.

  Business Response

  Date: 03/08/2023

  We have discussed options for resolving the issue with the customer and consider the matter closed.

• Initial Complaint

  Date:02/23/2023

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I accidentally pulled a large sum on money out of the wrong account, and ended up putting a stop payment on the transaction. I was locked out of my account since early January and unable to access my betterment account. Since then I've called and emailed multiple times with no resolution. I called in January to verify who I was and was told that it would take up to a week. It's been nearly a month now, and it's been escalated twice with no resolution. When I called the 2nd time I was told that it had already been escalated, but had been sitting with the supervisor for several weeks. That worker said he would escalate it again. The customer service reps I spoke to were really helpful and polite, but it wasn't anything they could do as it requires a supervisor to review. It's been a another week and I've gotten no response or access to my accounts.

  Business Response

  Date: 02/24/2023

   We have discussed options for resolving the issue with the customer and consider the matter closed.
  
  

  Customer Answer

  Date: 03/04/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  *********************
  
  
  
   
  
  

• Initial Complaint

  Date:01/12/2023

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I opened a betterment account at the end of 2020. Shortly after opening the account I deposited approximately ~$10,000 USD into my account. After ~14 months, I sought to close my account. Over the course of those 14 months I changed my name (due to marriage) and changed banks. Upon trying to withdraw my money, I was not able to do so. Upon connecting my new bank account I received an error that none of my new bank accounts qualified as fundable accounts. After several phone calls I was told that my account had been frozen and I would need to get the other account holder (it is a joint account) to properly sign up to make a withdraw. I had been moving money into and out of this account for a year without difficulty, but as soon as I switched over bank accounts I was completely locked out and this was the reason they gave me. After several phone calls, I coordinated details to get the other account holder signed up. After attempting to set up the accounts I was once again told that my accounts were non-fundable. At no point in time was I given an indication as to why or was I provided insight by customer service indicating additional steps needed to acquire my money. I was told in no uncertain terms that the steps I was taking were the only steps provided to me and they have not worked. The immense obstacle to making the slightest update to my account and the sudden transition from a perfectly functional account to a locked account due to changing bank accounts has made this process feel predatorial and unreasonable. I fear that I will be forced to go through hoops with no clear guidance and never gain access to my money again. A company that is managing finances should be held to a high standard and able to provide their customers access to their own money with a far more reasonable barrier of access. Errors in accounts should be escalated immediately and customers should be able to cure these issues well before they become obstacles to their own finances.

  Business Response

  Date: 01/31/2023

   

  We will respond directly to the complainant about their options and consider the matter closed.  
  

  
  

  Customer Answer

  Date: 02/21/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID# ********, and have determined that my complaint has NOT been resolved because:

  [

  The business responded that they would reach out to me directly to address the concern. I waited a week and received no feedbacks from them. I would like this case to be readdressed but am not certain what options are available to me. 

   

  -Thomas Good

  ]

   

   

   

   

  In order for the BBB to appropriately process your response, you MUST answer the question above.

  
  Sincerely,
  
  ****** ****  
  
  
  
   
  

• Initial Complaint

  Date:12/20/2022

  Type:Service or Repair Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I tried to open a checking account, and they locked all my investment accounts. I tried to verify my identification, and they asked for more and more documents and could not verify my identity. What kind of business is this when you take customers' money hostage? When I submitted the document, they said I did not and ask more supporting documents. This is a very frustrating and unprofessional business that needs a process to get things done right rather than blindly holding customers hostage of their money. Give my account back!

  Business Response

  Date: 12/21/2022

  We will respond directly to the complainant about their options and consider the matter closed.

  Customer Answer

  Date: 01/02/2023

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find that this resolution is satisfactory to me and the matter has been resolved.
  
  Sincerely,
  
  ***********************
  
  
  
   
  
  

• Initial Complaint

  Date:12/14/2022

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Since November 18, I have been trying to transfer funds out of Betterment to an account with TD Ameritrade. Betterment seems to utilize a variety of tactics to stonewall such requests, apparently so they can retain more assets and collect additional fees. I have been assured by multiple customer service representatives that the request is in good order and that if I just submit it one more time, then it will go through just fine. To date, I have submitted the request 5 times (including one this evening). Can you possibly intervene to get them to address their deficiencies so this transfer can execute? Note that I plan to do a series of these transactions, so I may need your help with future ones, so long as they continue to utilize these ridiculous tactics.

  Business Response

  Date: 12/21/2022

  We will respond directly to the complainant about their options and consider the matter closed.  
  
  

• Initial Complaint

  Date:11/08/2022

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I received an email on 10/6/2022 that an account had been set up using my email address **************************** This is concerning to me because I have my social security frozen on all credit bureaus and individuals should not be allowed to open accounts in my name. I contacted Betterment and they told me the account would have required identification and verification in order to set up the account. None of which I provided. If they would have verified my social it would have shown my account is frozen and they should not have been able to open an account. They told me they would suspend the account. This is unacceptable that an account was easily created and is FRAUD. The company should have better more secure procedures in place to prevent this from happening.

  Business Response

  Date: 11/10/2022

  We will respond directly to the complainant about their options and consider the matter closed.

• Initial Complaint

  Date:10/28/2022

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  This started a week ago. I withdrew all of my money from a UFB ************** account to place into a Betterment ************ account in an effort to consolidate funds. I've been a Betterment member for around 6 years and this is where some of my other funds are. My intent was to receive my last interest payment from UFB on Nov 1 and then withdraw that and close the account.Shortly after consolidation, I made a withdrawal to my personal ***** ***** account. Due to "security" Betterment placed a hold on that transaction and contacted me by email to make sure it was legit. I confirmed it was legit but asked that it be canceled. I was told it cannot be canceled and asked again to confirm to process the transaction which I confirmed. To my extreme surprise, I was then told the transaction would proceed but they would reroute the funds to a completely different external account (UFB Direct) and not my ***** ***** one. This action was unauthorized.I immediately called in assuming this was just a mistake. ******** Service Agent 1 confirmed that it wasn't a mistake and looked into it. She told me they put it on hold and I'd hear back soon, but I didn't. Since then I have been back and forth with support and called in another 3 times to try to sort things out.I've been told now for 3 days that the money has been rerouted. I'm left with no choice to accept this negligence on Betterment's part and am now concerned with just recovering that money. As of this writing, UFB Direct has no record of an incoming transfer and all Betterment can tell me is it was sent to UFB Direct.I have requested a supervisor call me three times and have only received a single email response from a supervisor that simply repeated what another agent had already said. I have received zero calls as promised.Betterment is a bank and the custodian for my funds. I demand an in depth response as to what happened, where my money is, and guarantees it won't happen again.Transcript attached.

  Business Response

  Date: 11/01/2022

  We will respond directly to the complainant about their options and consider the matter closed.