Complaint Review: Monex Crdit Company - Newport Beach CA
Monex Crdit Company Push to acquire additional silver bars that they would finance Newport Beach CA
*Consumer Suggestion: Stupid
In July 2016, I purchased one silver bar ($10,000), immediately the account representative pushed me to buy two mores bars by investing $30,000, with the rest financed by Monex Credit Company for a total of $60,000 investment. My equity therefore was 49.9%. Frank Gonzalez, the Account Representative, offered to monitor the market and make me aware of exposure in the market. Well, in 45 months, he only call me once (on 5/24/19) to tell me that I needed to deposit $1,419.86 because my equity had dropped.
Back to the present (4/9/2020). On March 16, 2020, I received this email from them:
Subject: FORCED LIQUIDATION
Date: March 16, 2020 at 9:49:45 PM PDT
RECENT FLUCTUATIONS IN MARKET PRICES OF PRECIOUS METALS HAVE
UNFORTUNATELY CAUSED THE EQUITY IN YOUR MONEX CREDIT COMPANY LOAN
ACCOUNT TO FALL BELOW MINIMUM REQUIRED LEVELS, COMPELLING US TO
LIQUIDATE POSITIONS IN YOUR ACCOUNT PURSUANT TO THE TERMS AND
CONDITIONS OF YOUR LOAN AND SECURITY AGREEMENT WITH MONEX CREDIT
WE DEEPLY REGRET SUCH ACTIONS. HOWEVER, THE ENFORCEMENT OF
MINIMUM EQUITY REQUIREMENTS IS ESSENTIAL AT TIMES OF EXTREME
ADVERSE MARKET MOVES.
AT THIS TIME, YOU SHOULD DECIDE WHETHER YOU WANT TO REENTER THE
PRECIOUS METALS MARKET, IN ORDER TO TAKE ADVANTAGE OF POSSIBLE
FUTURE PRICE MOVES. IF YOU WISH TO REENTER THE MARKET, MONEX
DEPOSIT COMPANY AND MONEX CREDIT COMPANY PROVIDE A SPECIAL
PROGRAM TO REDUCE YOUR COST OF DOING SO. UNDER THIS PROGRAM,
THE COMPANIES WILL ALLOW YOU, UNTIL THE CLOSE OF BUSINESS
ON MARCH 24, 2020>, TO REESTABLISH ALL OR A PORTION OF
THE POSITIONS IN YOUR ACCOUNT THAT WERE FORCED LIQUIDATED.
THE PROGRAM WORKS AS FOLLOWS:
1. IN ORDER TO REESTABLISH ALL OR ANY PORTION OF YOUR
PRIOR POSITION(S), YOU MUST HAVE SUFFICIENT FUNDS ON
DEPOSIT WITH MONEX CREDIT COMPANY TO MEET THE INITIAL
DOWN PAYMENT AND/OR COLLATERAL REQUIREMENTS FOR THAT
2. POSITIONS WILL BE REESTABLISHED AT MONEX DEPOSIT
COMPANY'S PREVAILING BID-ASK PRICES, WHICH AVOIDS THE
NORMAL BID-ASKED SPREAD.
3. NO COMMISSIONS WILL BE CHARGED FOR REESTABLISHMENT.
YOU WILL ALSO BE GIVEN A CREDIT FOR ANY COMMISSIONS
PREVIOUSLY CHARGED ON THE FORCED LIQUIDATION OF EACH
POSITION YOU DECIDE TO REESTABLISH.
IF YOU WISH TO TAKE ADVANTAGE OF THE REESTABLISHMENT PROGRAM
AND HAVE NOT YET MADE ARRANGEMENTS TO DO SO, PLEASE CONTACT
YOUR ACCOUNT REPRESENTATIVE IMMEDIATELY.
MONEX DEPOSIT COMPANY
MONEX CREDIT COMPANY
My equity was $1,184.16 which I supposed to be sent by mail as of this writing (4/10/20). So, I will let the summary below speak by itself about how good of investment in silver this was for me:
07/16/2016: Original capital investment was: $30,000 for a 49.99% equity position of 3x1,000 oz silver bars.
05/24/2019: Deposited $1,419.86 due to drop in minimum equity
03/16/2020: Forced termination of account.
04/06/2020: Called Frank to asked him why he didn't informed me back on 04/10/2020, before the market begin its down ward movement, to sell my position. He failed to act and it cost me. I requested a check for $1,184.16, which was the remaining equity in my account.
04/10/20: I called Frank but he wasn't available until Monday.
Read all the ripfoff of reports on Monex before you invest. Do not take position with hem; buy your own bars if you must invest in precious metal._
Lesson learned very expensively!
This report was posted on Ripoff Report on 04/10/2020 02:57 PM and is a permanent record located here: https://www.ripoffreport.com/report/monex-crdit-company/newport-beach-ca-push-acquire-1493916. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content
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