What to Do If You Have a Problem With a Brokered CD

Don’t be embarrassed if you invested in a long-term, brokered CD in the mistaken belief that it was a shorter-term instrument—you are not alone. Instead, you should complain promptly to the broker who sold you the CD. By complaining early you may improve your chances of getting your money back.

Here are the steps you should take:

1. Talk to the broker who sold you the CD, and explain the problem fully, especially if you misunderstood any of the CD’s terms. Tell your broker how you want the problem resolved.
2. If your broker can’t resolve your problem, then talk to his or her branch manager.
3. If the problem is still not resolved, then write a letter to the compliance department at the firm’s main office. The branch manager should be able to provide with contact information for that department. Explain your problem clearly, and tell the firm how you want it resolved. Ask the compliance office to respond to you in writing within 30 days.
4. If you’re still not satisfied, then send us your complaint using our online complaint form at www.sec.gov/complaint.shtml. Be sure to attach copies of any letters you’ve sent already to the firm. If you don’t have access to the Internet, please write to us at the address below:

You should also send your complaint to the banking regulator that oversees the bank or financial institution that issued the CD:

• The Board of Governors of the Federal Reserve System oversees state-chartered banks and trust companies that belong to the Federal Reserve System.

• The Federal Deposit Insurance Corporation regulates state-chartered banks that do not belong to the Federal Reserve System.

• The Office of the Controller of the Currency regulates banks that have the word "National" in or the letters "N.A." after their names.

• The National Credit Union Administration regulates federally charted credit unions.

• The Office of Thrift Supervision oversees federal savings and loans and federal savings banks.

Caution: Please remember that even if you file a complaint with us or with a banking regulator, we may not be able to help you get your money back.

http://www.sec.gov/answers/brokeredcds.htm