Advisors Frustrated by Schwab, TD Ameritrade Service Delays

The issue started in March and "steadily got worse throughout the year," Brown told ThinkAdvisor on Monday. "The peak was in December with us having regular wait times of over an hour to reach the right people at Schwab. On multiple occasions I had to call in with clients who had to wait 45 minutes in order to reach somebody."

New Service Model

Brown chalked up the problem to "Schwab switching from a dedicated team-based service model to a general pool, which goes along with [its] new phone system which is supposed to route you to a specialist who can deal directly with your specific problem."

There has "been a big push" by Schwab to "get all of our interaction with the company moved online," Brown said. "Ironically this one's … leaving our most valuable joint clients in the lurch because they are often older and less capable or less interested in interacting electronically."

It was also "sadly not limited to delays in reaching somebody," he explained, explaining: "We regularly submit service tickets which wind [up] sitting for days and sometimes weeks without being acted on.

"In the past it was normal to have a member of the team call back if there was an issue that couldn't be resolved immediately," the advisor stated. "We've had several important service items where we get multiple promises for callbacks and nobody takes ownership and nobody follows up."

Brown had been in contact with Schwab about the issues, he added. "Our understanding is that they are going to be doing a beta test of the old service model. They have not given us a reason as to why this would be happening. My guess is that it's due to the massive increase in volume on the retail side combined with their new phone system."

Schwab Responds

Schwab spokesman Rob Farmer said in a statement: "We are aware there have been instances over the past few months in which we have not met our usual high standards for client service. We are actively working to resolve issues that may have led to an unsatisfactory service experience or longer than usual hold times.

"These issues are the result of a confluence of challenging factors but, importantly, they are not due to the ongoing integration of Schwab and TDAI. We certainly regret any inconvenience our service levels may have created and we're working to resolve them as quickly as possible."

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• How the TD Ameritrade Deal Affected Schwab's Q4 Earnings