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Business Profile

Life Insurance

Principal Financial Group

Headquarters

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BBB Accredited BusinessA+Rated by BBB

Complaints

This profile includes complaints for Principal Financial Group's headquarters and its corporate-owned locations. To view all corporate locations, see

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    Customer Complaints Summary

    • 318 total complaints in the last 3 years.
    • 90 complaints closed in the last 12 months.

    If you've experienced an issue

    Submit a Complaint

    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.

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    Complaint status

    Complaint type

    • Initial Complaint

      Date:12/31/2024

      Type:Service or Repair Issues
      Status:
      Resolved
      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 contacted Principal in an effort to withdraw money from my 401k in the form of a hardship application to help purchase a new home in December of 2024. I uploaded 44 pages of every document that exists from my mortgage lender because they kept coming back via email and telling me I had not provided the correct documentation which was an out right lie. I have bent over backwards to provide every page of the mortgage loan contract in the form of 44 pages of official documentation directly from the lender. There is quite literally nothing more to provide and this has been confirmed by the lending officer. They have given me a deadline to provide this documentation by January 15th which is why I'm trying to get this resolved asap. It has become very obvious their intent is to stall, give me the run around until my deadline has expired. I work two jobs and received the hardship withdraw from that. Company (********) by providing the first two pages of the loan contract and had the money in my account in 2 days. ******************** is blatantly practicing unscrupulous and unethical business practices by doing this to not only me but many other people according to their reviews. My ultimate resolution to this fiasco is to speak with someone higher up that can help me obtain my funds. I have spent hours between waiting on hold with their various representatives, providing and uploading documentation, and being passed around to different supervisors that all insist I'm still missing some mysterious non existent document. There is quite literally nothing more I can provide that I haven't already.

      Business Response

      Date: 12/31/2024

      Thank you for forwarding.  Principal will respond directly to the complainant.

      Customer Answer

      Date: 01/03/2025

       
      Complaint: 22748729

      I am rejecting this response because Principal dragged their feet and continually refused to accept the correct documentation intentionally over and over to prevent issuance of funds until the loan went through. Just like all the other negative reviews about this company confirm, they have displayed a pattern of unethical business practices. 

      Sincerely,

      ******* *******

      Business Response

      Date: 01/06/2025

      Thank you for forwarding.  Principal will respond directly to the complainant.

    • Initial Complaint

      Date:12/30/2024

      Type:Service or Repair Issues
      Status:
      Resolved
      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 worked for a company for 3 and a half years and at the beginning of my employment the company implemented an ESOP program administered by Principal Financial. I left the company in early 2023 and 2024 is my first distribution. I made my election late October and the election window closed in mid November. As of December 30th I sti haven't recieved my money and after at least 9 calls to Principal I've recieved 9 different stories none of which match each other. The lack of transparency and out right lies lead me to believe Principal is either covering for the employer or covering up their own misdeeds

      Business Response

      Date: 12/31/2024

      Thank you for forwarding.  Principal will respond directly to the complainant.

      Customer Answer

      Date: 01/02/2025

       
      Complaint: 22745203

      I am rejecting this response because:

      I was contacted by a manager on 12/31 who explained that the root cause of the issue would be addressed through training. As of today Jan 2nd I called to follow up on the **** Distribution to be told my election was changed in the system due to "a glitch" and that the distribution I elected and signed for direct deposit was changed to a paper check and that that check was sent to an address I haven't lived at in almost 2 years. This same thing happened to another participant who had also called and complained and been lied to by principal. The funny thing is Principal never used the wrong address when sending anything else to me. I fully believe this was done as retaliation to those who complained about Principal Financial Groups handling of this. 
      Sincerely,

      ***** ********

      Business Response

      Date: 01/03/2025

      Thank you for forwarding.  Principal will respond directly to the complainant

    • Initial Complaint

      Date:12/30/2024

      Type:Product Issues
      Status:
      Resolved
      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.
      In 2020 I terminated my employment with an employer that had a Stock plan sponsored by Principal. I left the funds there until they were forced out due to a small balance - close to $700. The check was mailed however the check was never received. I called immediately and asked that the check be sent again. The check was never sent again. I was advised that I would need to complete an unclaimed funds form in order to have the check re mailed, as they confirmed the original check was never cashed. Over the course of 2 years and countless calls, I have sent the requested form several times to only hear they did not review the form. After the 6th attempt of sending them the form, I finally requested to escalate and they were able to locate the form. I was then told that Principal can not send me the check because the account is with Fidelity. The account had a $0 balance so how can $0 be transferred to Fidelity? I called Fidelity 2 times and they confirmed 2 times that no balance was sent to them. I know this to be true because one Principal mailed me the check the account balance was $0. They never deposited my funds back into my account and left them as unclaimed property. No funds were transferred to ******** since Principal has the funds sitting and unclaimed property. I am in the process of engaging the SEC and FINRA because I am unsure as to why Principal will not send out the check that was never cashed after I have consistently called over the course of 2 to 3 years. Please send me the funds that I have been taxed on as this money is owed to me.

      Business Response

      Date: 01/02/2025

      Thank you for forwarding. Principal will respond directly to the complainant.

    • Initial Complaint

      Date:12/09/2024

      Type:Service or Repair Issues
      Status:
      Resolved
      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 wired my 401k rollover from Principal to Alliance and requested that Principal include my **** BASIS AND FIRST YEAR CONTRIBUTION information in the wire notes to Alliance. I spoke to several representatives who assured me to notate my request and it would be fulfilled. ******** refuses to accept my transfer because Principal DID NOT INCLUDE THIS INFORMATION AND REFUSE TO RELEASE A STATEMENT TO ME OR ALLIANCE and claim it is only issued with a check. I want this resolved now.

      Business Response

      Date: 12/10/2024

      Thank you for forwarding. Principal will respond directly to the complainant.

    • Initial Complaint

      Date:12/03/2024

      Type:Product Issues
      Status:
      Answered
      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'm in need of a hardship withdrawal from my 401k and I feel as though they're giving me the run around. I provided them with a 30 day termination letter and nothing was done. They've asked for proof of address which is clearly on the 30 day notice of eviction. Now that the 30 days notice expired I'll be issued court papers which will add on to the balance already owed. I've sent my ledger not sure why that's needed its really none of their business how many months owed. I'd appreciate if this matter gets situated quicker than the court cost I tried not to encounter.1 more things they also have copies of my lease to once again prove the address and landlord now that the 30 day termination is expired they're now asking for another 30 days eviction notice after that it'll be proof of address which is clearly on the 30 days notice.

      Business Response

      Date: 12/04/2024

      Thank you for forwarding. Principal will respond directly to the complainant.

      Customer Answer

      Date: 12/04/2024

       
      Complaint: 22614159

      I am rejecting this response because: I feel as though I've given the required documentation in timely manner. The 30 days termination notice was given on the 20th of Oct then they asked for proof of address and landlord which clearly states on the 30 days termination notice. It clearly states in order for a hardship you have to have proof of an eviction which the 30 days termination letter states. I should have never have had to fax my lease and ledger with the 30 days termination letter as a form of eviction which has my address and landlord already on it.

      Sincerely,

      ***** ******

      Business Response

      Date: 12/05/2024

      Thank you for forwarding. Principal will respond directly to the complainant.

    • Initial Complaint

      Date:11/26/2024

      Type:Service or Repair Issues
      Status:
      Resolved
      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.
      Company is a mess. Was hired on and was told I would have to pay $14.99 for the equipment to be shipped to me but than I would have to pay for shipping out to a company to get software onto them, which I paid $20.96 Than I was told the software was out of stock for the guy who does it, so they offered to send me an electronic check and that I would mobile deposit it into my account. So I did and the bank found it as a fraudulent check. So I told the company I was done, I now have to suffer the consequences of my bank account being blocked from transactions.

      Business Response

      Date: 12/02/2024

      Thank you for forwarding.  Principal will respond directly to the complainant

    • Initial Complaint

      Date:11/26/2024

      Type:Billing Issues
      Status:
      Answered
      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.
      Hi, in 2022 I tried moving funds within my 401k to a stable fund to prevent my assets from dropping due to an impending stock market drop. Principal didn't allow me to erroneously and my account ended up dropping over 20%. they admitted they froze it in error

      Business Response

      Date: 11/26/2024

      Thank you for forwarding.  Principal will respond directly to the complainant

      Customer Answer

      Date: 11/27/2024

       
      Complaint: 22606378

      I am rejecting this response because: I have not received resolution yet

      Sincerely,

      ****** *****

    • Initial Complaint

      Date:11/26/2024

      Type:Billing Issues
      Status:
      Resolved
      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.
      Desiring to roll over funds in two 401 (k) accounts into an external banking institution, our bank provided paperwork to Principal as they commonly do with all other rollovers/transfers. Principal rejected the paperwork, and instructed us to do it online instead. Online under "explore options" , there were no selections appropriate to complete our task. We had to call customer service, which took over two hours to complete only one of the accounts. Takeaway from this is the fact that Principal makes it very difficult to close accounts, and that they have an extended "gray area" that blurs the balance of security vs. account retention by making it very difficult.

      Business Response

      Date: 11/27/2024

      Thank you for forwarding.  Principal will respond directly to the complainant.

    • Initial Complaint

      Date:11/18/2024

      Type:Service or Repair Issues
      Status:
      Resolved
      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 have worked for ********* ********* for over nine years. I was fully vested in my ESOP program. The company sold the business and I retired from there. Principal sent me paperwork about my money. I opt for a payout on September 23, 2024.. ****** from Principal told me I would receive my payout on 10/31/24. In my bank account. Well that day came and no payout. I have called them again and spoke to **** who told me to give it to at least the first week of November. .She gave me a work order number ********* and stated research team was working on it. She took my email address and stated they would be in touch with me. That day came and went. And no one has ever got in touch with me. I still do not have my promised ESOP money. I called the 15th of November and I spoke to the Supervisor Trosterity and she gave me no date of when I would be receiving my money. All she could say was the administrative office is handling this. I need your help to get my money $1488.33 that is the amount I was quoted by ****** after taxes. I truly appreciate any help you could do for me. I have lupus and this money would surely help me and my family.

      Business Response

      Date: 11/18/2024

      Thank you for forwarding.Principal will respond directly to the complainant.

      Customer Answer

      Date: 11/25/2024

       
      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.

      Sincerely,

      ***** ********

    • Initial Complaint

      Date:11/12/2024

      Type:Service or Repair Issues
      Status:
      Answered
      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.
      Retirement was June 28th of 2023 from ********************** with Principal Financial holding the retirement funds. I asked for all of it to be transferred to my ******* ****** account. This year I was sent a letter saying that there was an additional $476.87 that I was owed and would receive if I filled out some forms. I sent them and then they told me on the phone that the value had decreased 75% in one month! I want the full amount promised. I want arbitration if this is not received within a month.

      Business Response

      Date: 11/12/2024

      Thank you for forwarding.  Principal will respond directly to the complainant

      Customer Answer

      Date: 11/12/2024

       
      Complaint: 22542790

      I am rejecting this response because we aren't received any email from them yet.

      Sincerely,

      ****-***** ******

      Customer Answer

      Date: 01/07/2025

      I Have been waiting from November 12th for a further response from the BBB. I did hear from the company I complained about but the result was not satisfactory. I have attached an updated status report on this and expect BBB to follow up.

      Business Response

      Date: 01/07/2025

      Thank you for forwarding.  Principal will respond directly to the complainant

      Customer Answer

      Date: 01/07/2025

       
      Complaint: 22542790

      I am rejecting this response because:

      They need to let BBB as well as us know why they have not agreed to arbitration. Or they can pay what they owe me. 

      Sincerely,

      ****-***** ******

    Principal Financial Group is BBB Accredited.

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