Some community colleges have sought to enact their own safeguards against marketers of financial services. which will make sure that federal regulators are paying attention to it," he said. "Let's leverage the regulatory powers we have in New York to maximize protection for people who live here. Get the latest news and some area history with our afternoon newsletter.
Many lawmakers have called for more federal oversight of the company. Novice investors recently got burned in the Gamestop trading frenzy, which earlier this year prompted Robinhood to temporarily suspend trading of certain "meme stocks."
#Sign out of robinhood app software#
A college student took his own life after a glitch in the software indicated he had a negative balance of $700,000, but his attempts to reach a live customer service rep were unsuccessful. One particularly tragic case drew attention to the program's spotty customer service. The brokerage has recently agreed to pay massive fines amid accusations that it misled customers and enabled inexperienced investors to engage in risky trading strategies. The app can feel more like an online casino than a serious investment tool. Robinhood, a commission-free investing and trading platform, has been criticized for "gamifying" stock trading. "As a company that thrives on encouraging inexperienced clients to trade, Robinhood runs the risk of exploiting students in the same way credit card companies once did before their tactics were regulated," Gounardes wrote in his letter. But sign-up comes at significant financial risk. Gounardes has written a letter to the state Department of Financial Services' acting Superintendent Adrienne Harris asking her to "examine the practices that Robinhood is engaging in on New York’s college campuses to determine what additional safeguards and regulations are necessary to protect New York’s consumers."īoth credit card issuers and Robinhood have argued their companies enable young people to become more financially literate and plan for the future. Similar sales tactics were deployed by credit card companies in the early 2000s until federal laws banned the companies from coming within 1,000 feet of a college campus, Gounardes said.
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