Consumer complaint received 2022-08-31
Company: JPMORGAN CHASE & CO.
State: TN
Product: Checking or savings account
Sub-product: Checking account
Issue: Opening an account
Sub-issue: Didn't receive terms that were advertised

Complaint:
In XXXX, I received an offer via U.S. mail from J.P. Morgan/Chase . The offer, addressed and targeted specifically to me by name, advertised a bonus of up to {$600.00} in exchange for opening and funding two new accounts -- {$300.00} for a new checking account, {$200.00} for a new savings account, and an additional {$100.00} for both. 


On XX/XX/XXXX, I signed up for both new accounts -- online, using the offer code and website provided on the postcard -- and was immediately approved for both. I received a confirmation e-mail, account information, and the accounts were both added to my existing Chase.com account. ( I have been a Chase credit card holder for many years, so Chase already had much of my personal information and credentials on file ). 


As instructed by the offer, I immediately set up payroll direct deposit to the checking account. I also transferred {$5.00} to each account to provide an initial balance, then proceeded to link and transfer funds from other external accounts to the savings account. Over the course of the following week, I transferred/committed {$500.00} to the checking account and {$15000.00} to the savings account. 


During this time, I received several additional congratulatory/celebratory communications from Chase. All of my transfers were completed/accepted, I received progress e-mails related to the bonus offer, and I even received a debit card in the mail. Everything appeared to be going smoothly until XX/XX/XXXX, when I logged on to my Chase account to pay my existing credit card balance and was instructed to call Chase, as my account had been locked for security reasons. 


I promptly called Chase and, after a lengthy hold time and transfer, was connected with XXXX in the Security and Fraud department. XXXX informed me that my checking account had been " restricted, '' as identity theft was suspected, and that it ( as well as the savings account ) would be closed. If I wanted to open a new account with Chase, I would have to enter a physical branch, present two forms of identification and my Social Security card. 


I explained to XXXX that the accounts were valid, that I had requested them both, and that I had funded both accounts, as well as initiating payroll direct deposit. XXXX explained that she was sorry for the inconvenience, but that " because I had opened the accounts online '' they were flagged as fraudulent. I was told again ( and several times after ) that if I wanted to open a new account, I needed to go to a physical branch to do so. 

I asked if I could use the Chase Secure Messaging service to provide photos of the requested documents -- No. Though I was able to confirm all of my personal information to speak with XXXX in the first place, and though I've held Chase credit card accounts for *years, * there was genuinely nothing I could to do preserve/keep these two accounts. My only option was to open two *new* accounts at a physical branch. 


I explained to XXXX that I had opened the accounts in response to a direct, targeted offer, and that I was only interested in the new accounts because of this additional offer. She apologized and noted that there was nothing she, or anyone else, could do to help. The offer-initiated accounts would be closed, so I would also not receive/qualify for the bonus offer, and I would not be eligible for the offer again ( since I would now be excluded as having opened an account in the previous year ). But if I still wanted to open accounts, I could enter a branch and present my identification to do so. 


With this, I confirmed to XXXX that it would not be convenient or possible for me to go to a physical branch, so I asked that the checking and savings accounts simply be closed and my funds returned to me ASAP. XXXX again apologized and said that she could not help me, here, either. I had XXXXwo options -- I could either go to a physical branch, open two new accounts, and then ask for my funds to be transferred to those accounts or I could wait for the flagged accounts to be closed, which could take a few days. Once the accounts were closed, I would be mailed a cashier 's check for the funds on my account, which could take between 10-14 business days. 


So, Chase has over {$15000.00} in my funds, funds that presented no security issue when I transferred them into the bank, but that I will have to wait for anywhere from 2-3 weeks for them to be returned *via mail. * In addition to losing the {$600.00} bonus I was offered and well on the way to earning, I am also forfeiting the interest that I was previously earning on this {$15000.00} before I initiated the transfer to Chase to earn the promised Chase bonuses, and I have no idea when I might have these funds returned to me ( not to mention the very genuine security issue of having a physical cashier 's check mailed to me, rather than having the funds electronically transferred to an alternate account ). 


While I certainly understand the value of security and fraud protection, I fail to understand several things. 

First, why did it take over a week -- during which time I was issued a debit card, allowed to make several transactions to fund the accounts, and spent significant time going through the verification and account setup process -- until Chase suspected fraud and closed my accounts. If the accounts were suspected to be fraudulent, this should have been flagged upon the initial application -- and certainly not well after debit cards had been issued and mailed to me. 


Second, why were the new accounts flagged to be *closed* -- coincidentally, as soon as I completed the final step ( other than waiting for 90 days ) to earn the {$600.00} offer -- as opposed to simply " locking '' the accounts and allowing me to keep them by providing reasonable proof of identity. Again, I had already gone through notable effort to open and set up direct deposit and transfers to these accounts. 


Third, why -- after a global pandemic that necessitated the need for online and remote banking transactions -- would a bank as large as Chase be incapable of verifying identity ( particularly for a longtime customer ) through any means other than physical identification cards presented in person in a physical branch ( not to mention that two forms of ID *and* a social security card* is excessive -- that's more identification that I was asked to present for my employment or my U.S. passport ) . 


Of course, most concerning is the lack of security or expediency in returning my funds to me. Having to wait up to 3 weeks for a paper cashier 's check to arrive in the mail is completely unacceptable for any balance, but certainly one as high as {$15000.00}. To add to the inconvenience, my entire Chase account is currently locked, which means I also do not have access to my credit cards or to an account notification letter Chase sent me this morning. When I asked XXXX how long my account would be restricted, she was unable to say. ( And confirmed that there was nothing she could do to remove this restriction, as it had been placed by the backend fraud department ). 

Understanding that XXXX was not responsible for any of the decisions, I did tell her that I found this to be an unacceptable business practice. She again explained that the catalyst for this was simply because I " had opened the accounts online, so it appeared to be identity theft. '' By this point, I think it was more than clear that there had been no identity theft involved, but there was nothing further that XXXX could do to resolve the problem. XXXX was also not able to explain what about my transactions had indicated " identity theft. '' The only answer I was given was that I had " opened the accounts online, '' something that hundreds of other Chase customers do without issue every day, I'm sure.

Company response to consumer: Closed with non-monetary relief