CHICAGO (CN) – Morgan Stanley Dean Witter charges customers an illegal $5 fee for each stock transaction, a class action claims in Cook County Court. Plaintiffs say the charge violates Financial Industry Regulatory Authority rules: that it is unreasonable, involuntary, and has no relationship to any specific handling, insurance or postage.
The lawsuit challenges the $5 “Order Handling” fee, which Morgan Stanley claims represents “charges for handling, insurance and postage, if any.” The $5 fee for each purchase and sale of securities is withdrawn directly from customer accounts.
The suit notes that Morgan Stanley charges the fee regardless of the type and size of the transaction and regardless of whether the transaction was fully automated or not. Plaintiffs seek reimbursement. They are represented by Susan Appers with Block & Landsman.