Complaints without merit

May 17, 2008 1:37 am

What recourse do we, as RRs,  have against clients who write complaint letters that are totally without merit. I’m only referring to cases where the client is proven totally wrong.

The firm responds, the client realizes they are wrong and drop the complaint or no damages awarded yet it shows up on our U-4 affecting our professional life!!!

Can we file counter-complaints for damages? Does the client bare any responsibility for making things up and essentially trying to extort money from the broker or firm.

Jun 5, 2008 8:09 pm

This sounds like an stunt that Edward Jones did to me once.  They did this so if you ever jump ship, you have some explaining to do to your new employer.