Consumer complaint received 2022-03-27
Company: JPMORGAN CHASE & CO.
State: PA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX, I was approved for rental/relocation assistance by a non-profit organization named XXXX XXXX XXXXXXXX XXXX XXXX XXXX . After months of waiting the organizations, director personally contacted me on XX/XX/XXXX & told me that I could pick up my rental assistance check. I arrived at the organization 's headquarters to pick up the check on XX/XX/XXXX, the check was written in my prospective landlord 's name. Me and the landlord had a mutual agreement to sign the check over to me in order to allow me to payout the rental assistance funds on a month to month basis. On XX/XX/XXXX I left the " XXXX XXXX XXXX XXXX XXXX XXXX '' headquarters and drove to my nearest Chase bank branch to physically deposit the check. I met with my prospective landlord ( endorser ) at the Chase branch location and he physically signed over and endorsed the check to me, afterwards I walked into the bank and deposited. There was a 9 day hold placed on the check until it cleared. 

After waiting out the hold period the funds posted available in my Chase checking account on XX/XX/XXXX but I was still unable to access them. After calling & speaking to a Chase representative on the phone I was told that the check had cleared but had not been verified because it was in another person 's name, and that my account had been frozen and was pending closure in a few days. So, I asked the Chase agent at what point was I going to be notified of this action being taken? The agent told me that I should've received a letter stating this action being taken but I contested that I did not receive any letter of notification. 

I then proceeded to mention that the bank should be able to see clearly that the check was endorsed by signature of the person who's name the check is written to. The agent replied to me stating they don't know if that is the actual person. I then asked the agent why didn't they attempt to verify by calling the person and asking personal identification questions. The agent replied asking did I have a phone number that could be provided for the endorser? I replied back with the phone number. The Chase agent placed me on hold, came back to the phone stating that they were unable to verify the phone number.

So, I asked did you call & speak to someone or leave a voicemail? the Chase agent said they do not call to verify ; they use an internal database for verification and that there was no public record of the phone number showing in their! database. I asked the agent why is their internal database the only method of verification? and argued that it didn't seem fair or feasible that it was only through their internal database that someone can be verified. Why not any other methods of verification in place since that internal database would only be consistent of other chase users only.

The agent finally suggested that all parties ( myself & the endorser ) should come into the local Chase branch together and sit down with a banker to sort it out. I argued that would've been an option on XX/XX/XXXX when me and the endorser physically met up so he could sign over the check but now it wasn't a feasible option because of both parties work schedules conflicting. It was a legitimate check and transaction, it also defeats the purpose of customers having the option to sign over/endorse a check to someone else WITHOUT going into a bank ( I could have used mobile check deposit ). 

I then asked the Chase agent how they could just close my account after the check actually cleared, how can you guys just take my money? The agent claimed that they were not holding/taking my check and that I could call even after the account is closed to continue attempting to verify the check. The agent told me they do not and will not continue to verify the check unless I continue to call into Chase ( but that is the banks job to verify not mines ). At this point It became clear to me that Chase bank had not even done any sort of investigation to verify a completely legitimate check. I argued that the check also has the phone number of the " XXXX XXXX  XXXX XXXX '' non-profit organization on it and that they could have used that number as well to also verify. 

Lastly to add more of a slap in the face, weeks after they shut down my account Chase sent me a hard check for XXXX cents.

Company response to consumer: Closed with explanation