Merrill Edge Faces Class Action Lawsuit Over Interest Rates

Posted on January 23rd, 2024 at 3:20 PM
Merrill Edge Faces Class Action Lawsuit Over Interest Rates

From the desk of Jim Eccleston at Eccleston Law 

Merrill Edge, the online brokerage and advisory arm of Merrill Lynch, is facing a class action lawsuit.

The lawsuit alleges that Merrill Edge breached its contract by failing to pay a "reasonable rate of interest" on assets in retirement accounts, comparing its rates unfavorably to other brokerages like Fidelity Investments, R.W. Baird, Robinhood, and Vanguard Investments. The plaintiff seeks class-action status for clients with Merrill Edge retirement accounts since March 2022.

According to InvestmentNews, this is not the first time Merrill Lynch has faced legal action related to yields and interest rates on cash, with a similar complaint revived in 2021. In early 2022, during a period of rising interest rates, this latest class action lawsuit accuses Merrill Edge of maintaining unreasonably low rates for its retirement account savings program, ranging from 0.01 percent to 1.06 percent at the end of the year. “The plaintiff alleges that rates in the program remained unchanged throughout the year, despite the broader trend of increasing interest rates associated with federal funds rate hikes," the lawsuit alleges.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

If the regulators are after you, and are trying to make a case against you, and you are going to contest their allegations against you, make sure you have the best securities industry defense lawyers, Eccleston Law Firm. My case was spun into a combination of penalties including fines, cash settlements, CE courses and suspension. They were the best I have seen in action. When all was said and done, they had done their magic, my situation was negotiated and settled with a simple "letter of caution" and a case closed without action. It is the most important legal business decision you will ever make, make it Eccleston Law.

Rick R.

LATEST NEWS AND ARTICLES

January 9, 2026
FINRA Sanctions Former Wells Fargo Advisor for Profile Falsification and Unauthorized Trading

The Financial Industry Regulatory Authority (FINRA) disciplined former Wells Fargo Advisors broker James E. Holmes III for misconduct tied to his falsifying customer information and unauthorized trading.

January 8, 2026
Georgia Investment Advisor Pleads Guilty to Ponzi Scheme

A former Georgia investment adviser has pleaded guilty to wire fraud after federal prosecutors accused his firm of operating a multiyear Ponzi scheme that cost investors millions of dollars, as reported by Financial Advisor News.

January 7, 2026
FINRA Releases 2026 Regulatory Oversight Report, Spotlighting Private Placement Compliance Risks

The Financial Industry Regulatory Authority (FINRA) released its 2026 Annual Regulatory Oversight Report, responding directly to member feedback and reinforcing its stated mission to protect investors and promote market integrity.