I've been a rh user way before covid. Last year I noticed the brokerage lent my assets without my consent. Fast forward, rh now markets ''stock lending " program. I asked for a digital copy of me signing up for it, never got it. What are some options on legal front, if any?
RH is some sketchy ass shit.
Why do you not want to be part of stock lending? You get interest from doing nothing.
Has some slight tax implications - for example the $100 or whatever of dividends you get from your stock being taxed as income instead of the lower qualified dividends rate. The 10 cents Robinhood pays you to loan out your stock doesn’t make up for this difference
That's not the point.
All brokers lend stocks. That’s how shorts are created. The only difference is RH actually pays you for it. Most others just pocket the margin interest all for themselves.
Just feels shady when it did so keeping users in the dark but then marketing it. I am a seasoned investor so trying to make sense out of it.
Also, why ask now to enroll in stock lending when they already control the assets in my account. Just didn't add up. I was in the same boat like you untill i started get notifications to enroll into the lending program!
They specifically had a registration flow in the recent weeks. You probably didn't read and clicked through
You probably got a notice somewhere that stated the terms and conditions are being changed and unless you object you agree to those by default. The best option rn is to ask them for a copy of their latest terms and conditions and compare it to what you had back then. The other option would be to move platforms. For you to win a case against them you need to prove that you were harmed by this. Just disliking their policy is not enough.
I did scan the tnc but didn't find anything. Numerous chats with support but none giving me the digital copy. Its more of the brokerage using my funds than just me disliking their policy
The harm comes if you want to reinvest/withdraw your funds and can’t do it. All banks/retirement accounts invest your funds.