Consumer complaint received 2023-10-05
Company: JPMORGAN CHASE & CO.
State: CO
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/2023, I deposited into my JP Morgan Chase Bank checking account by mobile deposit my first paycheck from the XXXX XXXX XXXX XXXX XXXX  in the amount of {$4500.00}. That same day I received an email from Chase alerting me that my deposit had been accepted, but that my funds would be delayed because " [ c ] hecks within this deposit may not be paid because of information we have received from the paying bank or due to information we have within our own files. '' The email notified me that the funds would be available on XX/XX/2023. On XX/XX/XXXX, I received an email notifying me that I had a new letter from Chase. I attempted to access the letter, but repeatedly received a notification that that statements and letters portion of Chase 's system was down. Today, XX/XX/XXXX, I was able to access the letter, which informed me that my funds would be held until XX/XX/2023. Under " Hold Reason, '' the letter said only, " The information we have indicates the deposited check ( s ) may not be paid. '' This delay has already caused me to miss a car payment, and will cause me to miss my rent payment and multiple credit card payments, and accrue the resulting fees and interest. My account is currently overdrawn because of the hold. 

I called Chase bank today, XX/XX/XXXX, in an attempt to get the hold lifted. They told me there was nothing they could or would do. They did not inform me of the reason for the hold, aside from saying they hadn't received verification from the other bank. I reiterated that the check, as they could clearly see, is a paycheck from the XXXXXXXX XXXX XXXX XXXX XXXX. It is not a personal check and it is not in danger of not being paid. 

After getting nowhere with Chase, I turned to C.F.R. Sec. 229. I called Chase again and asked to speak with a manager. I explained that, under C.F.R. Sec. 229.10 ( c ) ( 2 ) they were obligated to makes the funds deposited in my account available for withdrawal not later than the second business day after the day on which the funds were deposited, since the check meets the requirements of C.F.R. Sec. 229.10 ( c ) ( 1 ) ( iv ) ( a check drawn by a state government, issued in my name, and deposited in my own account ). They still refused to release the hold. I then directed them to C.F.R. Sec. 229.13 ( e ) ( 1 ) and asked them to explain to me the " facts that would cause a well-grounded belief in the mind of a reasonable person '' that the check is uncollectible. They provided no such facts. I then informed them that the same provision requires them to provide, in the written notice of the hold, the reason for the bank 's belief that the check is uncollectible. I explained that the reason stated in the notice letter ( " The information we have indicates the deposited check ( s ) may not be paid. '' ) did not comply with the statutory requirement, as it provides no factual basis for their belief that the check might not be paid. Again, they provided no such facts. I reiterated that the check, as they could clearly see, is a paycheck drawn from the account of the XXXX XXXX XXXX XXXX XXXX XXXX and that I believed they were holding my funds without authority and in violation of the Code of Federal Regulations. They did not justify the hold, nor did they release it. Chase continues to hold over {$4500.00} of my earned money without reasonable cause.

Company response to consumer: Closed with explanation