Consumer complaint received 2020-07-07
Company: JPMORGAN CHASE & CO.
State: AZ
Product: Checking or savings account
Sub-product: Other banking product or service
Issue: Problem with a lender or other company charging your account
Sub-issue: Money was taken from your account on the wrong day or for the wrong amount

Complaint:
On XX/XX/2020 I completed an application for the the Paycheck Protection Program ( PPP ) /Economic Injury Disaster Loan ( EIDL ) via Chase , which I have my business checking, savings, and credit card accounts with for my business, XXXX XXXX ( XXXX ). 

Subsequent emails from Chase on XX/XX/2020, and XX/XX/2020, indicated that the PPP loan application was at Stage One of the loan process, and more information on the process would be sent to me as soon as a decision was made. 

On XX/XX/2020, I received an email from Chase indicating that the PPP/EIDL that I had applied for had been approved, and that the amount of {$41000.00} would be funded, and deposited into my business checking account. 

On XX/XX/2020, {$41000.00} was deposited into the business checking account of XXXX XXXX, at which time I used a portion of the funds to pay off the following accounts : - Chase Ink credit card ( {$30000.00} ) - XXXX XXXX, a XXXX XXXX ( {$3800.00} ) Leaving a balance of {$7000.00}. 

This remaining balance, together with accumulated sales, would have allowed me continue rent payments, and bills, as well as allowing me to return my employees to assist with what was now an environment of increasing sales. 

On XX/XX/2020, while managing my business accounts, I discovered that {$40000.00} of the loan had been withdrawn from my business checking account, leaving the account at negative {$27000.00}. After discovering this, I sent an email to my Chase relationship manager stating what had happened. The explanation was that {$40000.00} of the loan which represented the Economic Injury Disaster Loan, was returned to SBA, and that funding was now on a hold. 

Given the fact that my business checking account was now negative {$27000.00}, I was not able to pay my rent as well as my other business expenses. At this point, I stopped depositing sales into my Chase business account, and began placing incoming sales into a newly opened business account at XXXX XXXX XXXX XXXX, to prevent deposited money from being absorbed into a checking account with a negative figure. 

The removal of the funds caused me to close my location in XXXX, Arizona, and place my inventory into storage. The remaining amount that was accumulated from my last sales went to paying state, and local taxes, as well as covering the early termination fees from the various service providers. 

On XX/XX/2020 while reviewing my accounts, Chase placed my primary checking account at {$0.00}, and created a new account titled BB-SBA Loan. The account showed a balance of {$28000.00}, with a principal payment of {$12000.00} applied to the entire SBA loan of {$41000.00}. Given this new information, I closed my Chase, checking, savings, and credit card accounts, leaving only the BB-SBA Loan active, which has been increasing in amount due to interest charges. 

My issue with Chase was that they, without warning or conversation, removed {$40000.00} from my business checking account, leaving me without the ability to pay my business expenses. Additionally, the use of my critically needed operational funds of {$12000.00} were arbitrarily payed toward the Paycheck Protection Program/Economic Injury Disaster Loan, leaving me {$0.00}. 

I have recently had the good fortune of gaining employment with the local XXXX in XXXX, working the overnight shift, in order to cover basic household expenses for my family.

Company response to consumer: Closed with explanation