Cases & Investigations
Morgan Stanley / E*TRADE Checking Account Bonus Deception Investigation

If you opened an E*TRADE checking account with Morgan Stanley Private Bank to earn an advertised cash bonus and were later denied despite meeting the stated requirements, you may have a legal claim.

Morgan Stanley Private Bank, operating through the E*TRADE platform, launched a promotional campaign offering a $250 cash bonus to customers who opened a new checking account and completed two “Qualifying Direct Deposits” of $1,000 or more within 90 days. The promotional emails with subject lines like “Get a $250 bonus before time runs out” were sent to targeted recipients across the United States. Based on these clear and unambiguous terms, a large number of consumers opened new checking accounts and arranged their finances to meet the deposit requirements.

However, after customers completed the two required deposits—and in some cases received written confirmation that they were “on track to receive a $250 cash bonus”—Morgan Stanley arbitrarily denied their bonuses without clear explanation. The bank’s promotional materials contained a buried definition of “Qualifying Direct Deposit” as a “regular recurring deposit,” a term never adequately explained to consumers. Morgan Stanley then exploited this ambiguity to deny bonuses to customers who had fully performed according to the plain language of the offer.

The Consumer Financial Protection Bureau (CFPB), which enforces federal consumer protection laws prohibiting unfair, deceptive, and abusive practices, has identified failing to honor advertised account bonuses as a potential violation of federal law. Consumers who filed complaints with the CFPB have reported that Morgan Stanley reversed its denial decisions only after regulatory intervention—an admission that the initial denials were unjustified.

The CFPB is not the only enforcer of consumer protection rules. Private litigants may rely on state consumer protection laws—including New York General Business Law §§ 349 and 350, and the Connecticut Unfair Trade Practices Act—to challenge deceptive promotional practices. These laws provide for statutory damages and attorneys’ fees, enabling consumers to hold banks accountable for misleading advertising.

Consumer complaints filed with the Better Business Bureau, CFPB, and discussions on public forums reveal a pattern of similar experiences: customers are induced to open accounts, meet the stated deposit requirements, receive preliminary confirmation of eligibility, and then receive unexplained denial notices months later. In several documented cases, Morgan Stanley paid the promised bonus only after customers escalated their complaints to federal regulators—demonstrating that the bank recognized its initial denials were improper.

Join our Morgan Stanley / E*TRADE Checking Account Bonus investigation.

If you opened an E*TRADE checking account with Morgan Stanley Private Bank based on a promotional bonus offer and were denied despite meeting the stated requirements, you may be entitled to compensation. Contact us for a free case evaluation.

· Phone: Emily Madoff – 212-451-9622

· Phone: Philip M. Black – 212-451-9628

· Phone: Terrence Zhang – 212-451-9663

· Email: Outreach@wolfpopper.com

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