Consumer complaint received 2018-03-13
Company: JPMORGAN CHASE & CO.
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
Since XX/XX/XXXX, I have maintained a Chase Sapphire Reserve credit card account ( ending in XXXX ) always in good standing. In exchange for {$520.00} in annual fees I pay each year, Chase was to provide me with - among other things - a benefit common to credit card issuers referred to as " Purchase Protection ''. This Purchase Protection covers recent purchases under the following statement : " Certain personal items are covered when you purchase them using your Account or rewards points earned on your Account. The conditions for coverage are theft, damage, or involuntary and accidental parting with property. Involuntary and accidental parting with property means the unintended separation from an item of personal property in which the item 's location is known but recovery is impractical to complete. '' On XX/XX/XXXX, my home suffered a total loss due to a fire and a homeowners claim ensued. As a direct result of the fire, however, I realized another loss in the form of nonrefundable monies paid to a company for an order of custom-made window shutters which could not be delivered nor installed as the home was destroyed in the middle of the order. I realized that this Purchase Protection benefit is only in excess of other collectible insurance policies, so I waited until my insurer confirmed that particular type of loss would not be covered by the homeowners claim. I was advised by both my insurer and my attorney that this item falls within the coverage of my Purchase Protection benefit provided by Chase and I should file a claim with them for this specific loss. 

On XX/XX/XXXX, I submitted Claim XXXX under the Purchase Protection benefits of my account for {$3400.00} USD. I provided a fire department report, copy of the sale agreement and receipt for monies paid, credit card statement showing the transaction occurred on my covered account, report from fire investigator ruling-out arson, and an email from the insurer indicating the item was not covered by the homeowners claim. 

On XX/XX/XXXX, I received an email from Card Benefit Services requesting additional information. That additional information was ( 1 ) a copy of the homeowner 's insurance declarations page, and ( 2 ) a monthly billing statement showing the shutters were in fact paid for using the covered account ( which I had already provided in earlier submissions ). The same day, I uploaded the requested documentation for Card Benefit Services to review.

On XX/XX/XXXX, I received an email from Card Benefit Services denying my claim for the sole reason that " this benefit does not cover traveler 's checks, cash, tickets, credit or debit cards, among other negotiable purchased instruments ''. Perplexed as to why this description had anything to do with my claim, I called Card Benefit Services that same day and asked for more information. The representative claimed that the money I paid for the window shutters was - in their eyes - a " negotiable purchased instrument '' and therefore not covered by Chase Purchase Protection benefits. I attempted to expose the lack of reasoning with the representative that somehow resulted in the window shutters being called a negotiable instrument, but I was advised by the representative to submit a request via email to appeal this decision and I would receive a response within 5 business days. 

The same day on XX/XX/XXXX, I submitted the attached request to appeal the decision. My email requested that my claim be reconsidered citing that my purchase of window shutters can not be reasonably considered a negotiable instrument per the definition of such in Sec. 3-104 of Uniform Commercial Code. 

As of XX/XX/XXXX ( 11 days later ), Card Benefit Services has failed to respond to my appeal within their own stated timeline. I have spoken with other Chase cardholders via XXXX, XXXX, and XXXX who claim to also have had similar unreasonable claim denials from Card Benefit Services. I therefore believe that Card Benefit Services has, and continues to, conduct unfair and deceptive practices which misrepresent material facts and provisions relating to the coverage at issue. In requesting an appeal in relation to the facts and applicable law, Card Benefit Services has also failed to attempt in good faith a prompt and fair settlement.

I am requesting that Card Benefit Services promptly review my appeal and issue payment in the amount of {$3400.00} USD within the next 30 days. Should my request not be honored, I reserve the right to assemble other claimants in legal proceedings as I [ we ] are no longer bound to mandatory arbitration in this matter.

Company response to consumer: Closed with explanation