Consumer complaint received 2015-12-17
Company: JPMORGAN CHASE & CO.
State: FL
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
I recently suffered significant water damage to my home for which my insurance company paid out a large claim to make repairs. My home mortgage is with CHASE BANK. Chase required that I deposit the proceeds of the insurance claim in a " monitored escrow account '' which they assured me would be available for me to make the necessary repairs but that they had the right to control distribution to ensure that repairs were being made. Having no choice, I deposited the funds in the escrow account. I then asked for an immediate partial distribution to pay my public adjuster. In addition, under Chase 's purported internal policies, they provided me {$20000.00} to get the project started. However, their " standard '' policy says they will not allow any further draws until the project is 50 % completed. However, my project requires over {$120000.00}. I used a substantial portion of the initial $ XXXX draw to pay part of the initial deposit to my general contractor. However, I needed an additional {$25000.00} to pay the balance of his deposit and to pay the initial deposit to my cabinet maker. I submitted a detailed letter to Chase requesting the additional draw. I sent them all of the required documents so they could issue the payments directly to the contractors. However, I NEVER ONCE received a written response to any of my letters. I therefore called their insurance claims department several times to ask about the status of my request. Each time, they found a new excuse to delay processing. First, they wanted more documents. Then the required an inspection to make sure I was doing the work. However, I told them clearly that with only the initial $ XXXX I could not and would not get to 50 % completion of the project. After the inspection came back showing only 30 % completion ( as I had previously advised would be the case ), they continued to delay processing the claim and said they had to send it to the " corporate office '' for review because I asked for a " deviation '' from their " standard policy. '' I wrote them XXXX letters clearly explaining why I need the additional draw so I could get to 50 % completion and that without the funds I would not be able to pay my contractors to get to 50 % completion. I asked to speak with a representative from the " corporate office '' and was told they had no number for that office, knew no names of anyone working in that office and had no way to contact that office to find out the status of my request. Several days later, they finally called me to tell me my request was denied - a month after I first made the request. They said it was because I had not reached 50 % completion. I told them that I need the funds ( which are entirely my property and to which the bank has no ownership interest whatsoever ) to get to 50 %. They did not care. I asked who I could appeal the decision to. They said no one. I asked if I could speak to someone in the " corporate office ''. They said no and repeated that they had no way of contacting the office. I spoke to several " supervisors. '' All repeated the Chase " XXXX. '' They were utterly rude and unprofessional and absolutely unwilling to give any consideration to the fact that I can not proceed with the project without the funds. They are holding my money hostage. I tried to find a number for the Chase corporate office in XXXX, Ohio where the department is located, but no one could provide that information anywhere within the Chase customer service phone tree. In effect, Chase has stolen my money and refuses to release it to allow me to finish the reconstruction of my home. I am living in an apartment with my wife, XXXX children and XXXX dogs and my insurance company is already threatening to cut off my living expenses. Chase is purposely delaying and preventing me from finishing the project so I can move back into my house.

Company response to consumer: Closed with explanation