Consumer complaint received 2022-10-21
Company: JPMORGAN CHASE & CO.
State: CO
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
I am writing to complain about Chase Bank 's unfair insurance claim check funds distribution process. 
In XXXX of 2022 our home was damaged in a hail storm. 
We received funds from our insurance company to replace our roof and repaint the house. 
The check from the insurance company was written out to both myself and my wife, along with Chase Bank as they are the mortgage holder. 
We had to go into the bank and get them to endorse the check. Since the value of the funds received from insurance exceeded $ XXXX, Chase said they had to deposit the funds into an interest bearing account and we then needed to login to a website called XXXX to setup and account and manage the process. 

We were horrified to find this out as we deposited the check on Friday XX/XX/XXXX and the roofing contractor arrived on Monday XX/XX/XXXX to begin work and they told us the roof replacement would only take XXXX days. We immediately went onto the website to request an inspection ( required by Chase ). It took one week ( XX/XX/XXXX ) for an inspector to show up and verify the roof was replaced. 
Thursday XX/XX/XXXX the contractor showed up to be paid and we could not pay him in full due to Chase holding the funds. Contractor was extremely upset with us reminding us we had a written contract and he was due payment. Friday XX/XX/XXXX I called chase and argued with them and reminded them how urgently we needed the money to be released as we had an extremely upset contract who was due payment. The agreed to disburse 50 % of funds with held. Shockingly, even though the local Chase branch took our check and deposited it in their bank Chase said the only way to receive funds was to have the check mailed to us and there was not an option to go back into the branch and receive a check. 
It wasn't until the following Wednesday XX/XX/XXXX that the check arrived in the mail. 
Monday XX/XX/XXXX the painters showed up to paint the house. I am again in the same situation where they have completed their work and Chase is still with holding the funds and we are unable to pay the contractor.

Timeline of events is as follows : Friday XX/XX/XXXX Chase takes the funds. 
Monday XX/XX/XXXX we setup the required account with XXXX. 
Monday XX/XX/XXXX roofers show up to begin work. 
Tuesday XX/XX/XXXX we request an inspection. XXXX says it will take 2-4 business days for someone to contact us. 
Thursday XX/XX/XXXX the roofing contractor finishes his work and asks for payment. We can not pay in full since Chase is holding funds. 
Friday XX/XX/XXXX I call Chase XXXX to complain/ argue they are inappropriately withholding money due the contractor. They say it takes time for the process to work through but agree to release 50 % of the funds. 
Monday XX/XX/XXXX painters show up to paint the house. 
Tuesday XX/XX/XXXX the inspector finally shows up and does the inspection. 
Wednesday XX/XX/XXXX the check shows up so we can pay the roofers. 
Thursday XX/XX/XXXX I call Chase XXXX to complain that the inspection still does not show complete even though the people were there two days previous. I can not schedule the final inspection until the first inspection shows complete. 
Friday XX/XX/XXXX I call Chase XXXX to complain again that the first inspection still does not show complete and I can't schedule the final inspection ( which will take an additional week to get on the books for someone to come out ). Contractor again is extremely upset they are not getting paid as agreed to in the contract. 

Shame on you Chase for instituting such a cumbersome non-responsive process for customers to receive the funds they are due and owed. 
You have created so much stress for us trying to manage contractors and pay them accordingly. You are hurting homeowners and small businesses while you sit on other peoples money. 

I understand why Chase wants to withhold money to ensure their property the co-own is taken care of and repaired appropriately. But institute processes that are timely and in the best interest of the mortgage holder.

Company response to consumer: Closed with explanation