Consumer complaint received 2022-08-05
Company: JPMORGAN CHASE & CO.
State: CA
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
I previously submitted a complaint via the CFPB as it relates to JP Morgan Chase 's ( " Chase '' ) closing/freezing of my personal and business accounts after I was the victim of a professional scam regarding a fraudulent cashier 's check. Over the past few weeks, I have worked diligently and spent hours upon hours on the phone with Chase and at various Chase branches. Chase responded by my initial compliant via a letter delivered to me via email on XX/XX/XXXX. I have attached a copy of that letter hereto. 

In the letter, they agreed to close and release all funds held in my personal accounts which was completed successfully within a week after receipt of the letter. 

They further informed me that the funds in my IOLTA client trust/escrow account ( ending in XXXX ) " have been approved to be released, and that a check will be mailed to me once the account in closed ''. Please see the highlighted language in the same attached letter. They further indicated that my operating account ( ending in XXXX ) is overdrawn ( which was a direct result of the fraudulent cashier 's check. There is an important distinction between an IOLTA trust/escrow account and a standard operating account. The funds in the IOLTA trust/escrow account do not belong to my business nor myself. Instead, they belong to my clients and are held " in trust '' on their behalf. 

Subsequent to the receipt of this letter, I received a telephone call on XX/XX/XXXX, on a " recorded and monitored '' line, from XXXX at Chase 's " XXXX Office '' profusely apologizing for the delay in the return of the funds in my IOLTA account and assured me that the funds were being delivered, in the form of a Chase cashier 's check, via XXXX Overnight with a tracking number of XXXX. This package was delivered on that same day - XX/XX/XXXX and contained, as indicated by the XX/XX/XXXX letter and XXXX 's phone call, a cashier 's check for the full amount of funds in my IOLTA account - A copy of this check is attached hereto. I proceeded to deposit this check into my new IOLTA account on XX/XX/XXXX and there was a hold placed on these funds. The next day ( XX/XX/XXXX ), Chase, inexplicably, issued a " stop payment '' on this cashier 's check causing a negative balance in my new IOLTA account and, needless to say, interrupting both my business and risking my client 's funds. This action is completely inconsistent with the clear and unequivocal language of Chase 's letter dated XX/XX/XXXX regarding the approval of release of these fund, with XXXX 's phone and the delivery, via XXXX Overnight, of said cashier 's check. Chase had ample time to research this issue and has no right nor basis upon which to " change its mind '' after issuance of the letter and check. 

I immediately contacted Chase ( and XXXX ) for an explanation regarding this matter and received a phone message yesterday ( XX/XX/XXXX ) that Chase was permitted to take this action because the check was initially deposited into my operating account and then, minutes later, transferred into my IOLTA account. Clients are unfamiliar with trust accounting and, oftentimes, make checks payable to my operating account which are deposited there and, subsequently, immediately transferred to my IOLTA account ( where they belong ). This is a technicality and was merely a function of the payee of the check. The funds were properly and promptly transferred to my IOLTA account. First of all, this does not provide Chase with any basis for refusal to release these funds or issue the " stop payment '' nor does it permit Chase, once again, to " change it's mind '' after issuing a final letter as it did on XX/XX/XXXX. This letter, allegedly, " closed '' this case and Chase can not simply reverse course- It was in possession of all of the facts from the submission of the first complaint and made a decision. There were no few facts discovered, delivered or divulged after the issuance of their letter. Chase is clearly, in my view, acting arbitrarily, incompetently or in bad faith. I have been a loyal and good customer for nearly 15 years and, when I become the victim of fraud, they, not only refused to provide any assistance but, instead took these types of actions out of spite or for some unknown reason. 

Even assuming, arguendo, that Chase was entitled to take this action which, needless to say, I do not believe that they were entitled to. It does not address the previous balance in my trust account, belonging to other clients, in the amount of {$30000.00}. That amount has been in my trust account for some time and bears no relation whatsoever to the current predicament. Thus, even if Chase 's actions were to be deemed proper, they are not entitled to seize amounts that have been in my trust account for months and that belong ( and are liabilities ) to my clients. 

Thus, I would request that Chase, as it originally, agreed to do on XX/XX/XXXX and actually did on XX/XX/XXXX, issue a full release of the amounts in my trust account to me. At a bare minimum, I am entitled to the return of the prior balance of {$30000.00} immediately. 

Thank you for your prompt attention to this matter. I can be reached at XXXX or ( XXXX ) XXXX.

Company response to consumer: Closed with explanation