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: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.

• Initial Complaint

  Date:10/28/2022

  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 have requested that Betterment rollover a Betterment Traditional *** to my company 401k. All rollovers INTO Betterment are simple and fully electronic. To transfer out, you have to request via AI text, then email and then by mail. Clearly, they are making it as difficult as possible to transfer money out of the account.I have provided the Rollover Contribution Form provided by my company 401k provider. This form provides the following:My name and account information Rollover Source Rollover Account Type Instructions to submit Rollover funds including check details and address They requested additional forms such as a letter requesting the rollover by me, signed and a copy of the first page of my last Betterment statement by mail. I provided all of these forms on 10/21 via priority mail.On 10/25, I received notice that they would not process my rollover as requested. New information is requested including the following; new account name and type, account number, mailing address, and clearing number. All of this is detailed in the Rollover Contribution form except for account and clearing number which the 401k provider does not use. I would like Betterment to complete the rollover as requested. Note - There is some cross-over on my last name because of a name change.

  

  Business Response

  Date: 11/01/2022

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

  Customer Answer

  Date: 11/04/2022

  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]

  I have received no contact from Betterment either by phone or email. I would like a direct deposit of my *** at Betterment rolled over to my company 401k.  I have provided the provider information to do so but they will not execute the transaction  

   

   

   

  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. 

  On October 26, 2022, you emailed our Customer Experience (CX) team seeking guidance on how to successfully complete an outbound transfer for your Traditional *** account after it was rejected. On November 4, 2022, a member of our CX team responded with next steps.

  On November 7, 2022, you reached out for further clarification regarding a missing account number. That same day, another ** team member informed you that we would need the account number of the new firm receiving your transfer. You then replied, letting us know that your account manager does not use account numbers, and also expressed frustration with the transfer process.

  Later that day, a CX lead reached out to apologize for your experience and encouraged you to check with the receiving institution, as they should be able to provide the necessary account number. On November 8, 2022, you provided the required account number and documentation. On November 11, 2022, your transfer request was processed. Unfortunately, because the receiving institution did not provide the proper account number needed to initiate the rollover, there was a delay in processing your request.

  We understand how important a smooth transfer process is and we truly appreciate your patience. At the time, our process was more manual, but since then, we have introduced ACATS transfers, which significantly streamline and automate rollovers. With this enhancement, we are confident that future transfers will be more efficient and seamless.

  Betterment LLC 
  

  
  

  Customer Answer

  Date: 02/25/2025

  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:10/26/2022

  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.

  I have several accounts with Betterment. One being a checking account which includes a debit card tied to it. Recently in attempting to use my debit card, it was declined twice by Betterment. Puzzled, because I know I have sufficient funds I called the companys customer service line. After some research the rep I talked with told me that their system has/had a glitch in it affecting debit cards due to expire in November 2022. Those cardholders, with November expiration dates, using their cards in October were subject to declination. The rep advised me that she would email me once the glitch was fixed, that was days ago with no email yet received. If true, Betterment dropped the ball - not only for the glitch, but also because no notification or warning to was given to customers about what may happen when using their card. The least Betterment could have done is to have advise customers accordingly. On a unrelated note, it also seems that it is taking Betterment is taking longer than usual to transfer funds out of accounts and to other financial establishments. Betterment needs to issue warnings/notifications when a specific group of customers may be subject to declination for no fault of their own.

  

  Business Response

  Date: 10/27/2022

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

• Initial Complaint

  Date:10/21/2022

  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 agreed to the terms of Betterment's first email regarding this matter. I proceeded to initiate a deposit to my Betterment account on my own accord, however due to an incorrect return being submitted against my ***** ********** the funds in my account were placed on a hard hold and my account is now due for closure based on the fraud claim Betterment made.It seems there was a false report made on behalf of Betterment stating NOC code R06, a deposit was made in error to the ***** ***** account ending in ****. This deposit was not erroneously made, after some communication between Betterment and I, it was agreed to deposit my funds to ***** ********** therefore this report isn't substantiated. Initially there was over a 10 day delay before Betterment completed the deposit which I requested from them. Which is why a return was made on my behalf as it seemed as though my funds were wrongfully being held. I understand the confusion and I hope to resolve this amicably as my ***** ***** Account will be closed if this isn't settled between Betterment and ***** ***** via fax.I would like the opportunity to properly correct this issue, as requested in Betterment's initial email I am to be given 5 days to respond and return the funds, this was a false statement made by Betterment as they contacted my bank claiming fraud within 24 hours of that initial email circumventing my response. I hereby request a document be sent to ***** ***** in reference to the deposit made to the account ending in ****, stating the fact which is there was no fraud simply miscommunication between both parties. This being the fair resolution for all parties involved.

  

  Business Response

  Date: 10/21/2022

   

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

  
  

  Customer Answer

  Date: 10/24/2022

  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:

  I did not recieve any reponse. 

   

   

   

   

  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. 

  As previously communicated via email, your funding deposit transaction of $5,700 was returned by *****, which resulted in a debit balance in your Betterment account. Since these funds remained in your possession, we requested that you take action to resolve the balance. You informed us that you would proceed with depositing the funds once a Letter of Indemnification was submitted to *****************

  To support you in resolving the matter, we reached out to ***************** External Fraud Investigations team. However, we did not receive a response from ****************. While we understand your frustration, we provided all necessary guidance on the steps you could take, including working directly with **************** to redeposit the funds. Despite our explanations, you continued to demand additional outreach efforts beyond what we were able to facilitate or **************** would accept.

  During this process, we also encountered security concerns when you were unable to verify your identity by answering a required security question and inappropriate conduct toward our representatives. Given the nature of the transaction, we took appropriate action to lock your account in accordance with our security protocols and cease further correspondence regarding this matter.

  We regret that we were unable to reach a resolution that met your expectations. If you have any further concerns, we encourage you to refer to the information previously provided.

  Betterment LLC 
  

  
  

• Initial Complaint

  Date:10/11/2022

  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 responded to Betterments request to add a funding account to my account in order to complete two transfers a $23 and an ~$800 transfer. They proceded to transfer the $23 and after contacting them twice still have not transferred the remaining and much more significan amount

  

  Business Response

  Date: 10/12/2022

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

• Initial Complaint

  Date:09/01/2022

  Type:Sales and Advertising 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 used Betterment for a savings plan and had a negative net loss of ******%. Approx. $1,500. Upon speaking to them about my concern they would only email me and not offer me any help or reasoning why. The agent was not a licensed advisor and every time I call the business they try and connect me to the next person that cant help me. If I wanted to speak to a licensed advisor it would cost me ******. This has become very frustrating as this account is a conservative account. I would like to recover my management fees.

  

  Business Response

  Date: 09/09/2022

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

  Customer Answer

  Date: 09/09/2022

  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 refuse to speak to me over the phone regarding my significant loss of money with Betterment. I have requested over seven times. I need them to speak with me on the phone to resolve the matter, not by an email. Please help me with this matter. 

   

   

   

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

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

  Customer Answer

  Date: 09/14/2022

  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 have not given me a call discussing my loss in my account. I had to ask them six separate times to connect with me to someone on the phone who could help me and they would not give me that phone call. As a customer I would appreciate being able to speak to someone on the phone regarding the loss of money that I relayed in my first complaint against them. I don't know how they are allowed to give such short response to BBB. Thank you for your help.

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

   

   

   

  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 believed that we had 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.  

  We understand how frustrating it can be to see negative returns in your account and we regret that we were unable to fully address your concerns. However, we are unable to provide financial compensation for losses due to market volatility. Additionally, our Customer Experience team members are not licensed financial advisors and cannot provide investment advice. As described in the Betterment client agreements and wrap program disclosure, Betterments digital offering does not provide financial advisors with whom to discuss your portfolios. That said, Betterments Premium offering provides ******************* Planners to advise on accounts (for an additional cost).  If you prefer to have this support, you can enroll in the Premium offering through the Betterment digital interface. 

  We also apologize for any difficulty you experienced in reaching a representative by phone. Your feedback is valuable to us and we are committed to improving both our phone and email support to ensure customers receive the answers they need.

  If there is anything else we can assist with, please let us know.

  Betterment LLC