Consumer complaint received 2016-02-23
Company: JPMORGAN CHASE & CO.
State: VA
Product: Bank account or service
Sub-product: Other bank product/service
Issue: Account opening, closing, or management

Complaint:
From XXXX - XXXX XXXX I lived in XXXX, and had a checking account with Washington Mutual. In early XXXX XXXX I moved to XXXX. I closed my checking account with Washington Mutual before leaving town. Apparently, however, Washington Mutual did not also close my Overdraft Protection ( ODP ) Line of Credit ( LoC ). 
From XXXX XXXX - early XXXX XXXX I lived in XXXX and then moved to my current address in XXXX in XXXX XXXX XXXX. 

In XXXX XXXX, Washington Mutual collapsed in the largest bank collapse in American history ( at that time ). After being seized by the FDIC, Washington Mutual 's assets were sold to JPMorgan Chase in late XXXX XXXX. 

On XXXX XXXX XXXX, fully three plus years after I left XXXX, someone transferred a balance/charge of {$490.00} to the ODP LoC that was previously linked to my checking account. No description of this charge was provided to me by Chase other than what they recovered from the statement from XXXX of XXXX -- " XFR BALANCE FROM XXXX XXXX XXXX {$490.00} ''. The statement still listed my mailing address from XXXX ; I had been living in XXXX for over two and a half years by the time that statement was mailed to my previous XXXX address. 

From XXXX of XXXX until XXXX of XXXX, this ODP LoC accrued monthly matching " payments '' and deductions as well as financing and service fees, until the credit limit of {$2500.00} was breached for a final ( substantiated/documented to me XXXX balance of {$2500.00} for the statement closing on XXXX/XXXX/XXXX. These statements were sent to my previous address in XXXX this entire time. Needless to say, there were no actual payments from any bank account I controlled from XXXX to XXXX -- the " payments '' were from the credit line to itself. 

Beginning in XXXX XXXX, my " account '' ( ODP LoC ) with " Chase '' ( again, I had opened the account with WaMu in XXXX ) started registering as delinquent for credit reporting purposes until it was 180 days late by XXXX XXXX. In XXXX XXXX it went to a Charged Off status. At some point in late ( XXXX ) XXXX, Chase managed to figure out that I no longer lived in XXXX and began to contact me via mail and phone. I finally checked my credit reports and took unpleasant notice of the issue in early XXXX. 

From XXXX through XXXX of XXXX I challenged the delinquent account with XXXX and XXXX and also began calling and working with Chase Card Services ' Fraud Operations unit. After explaining the entire situation and providing proof via multiple sources of government documentation that I had not lived in XXXX since XXXX, Chase informed me that I was responsible for the entire amount ( again, {$490.00} plus interest and fees over five years ; sent to an address I had n't lived at since XXXX ) because " this account is linked to your valid Chase checking account ending in XXXX for overdraft protection. '' XXXX XXXX and XXXX XXXX were the " investigating '' agents. 

Even though they were quite obviously able to find my correct information and address when it was time to charge off this account, at no point in the intervening years did they attempt to see if my mailing address was incorrect. Moreover, this account was at a XXXX balance in XXXX XXXX when WaMu collapsed and the FDIC sold the accounts to Chase. 

In spite of my proof of residence in Virginia at the time, Chase adjudicated this claim internally by deciding that it was my burden to provide proof I closed the checking account in XXXX -- of course no one keeps records of checking accounts they closed nearly 10 years ago. I would also argue that it is in fact their burden of proof that the originating {$490.00} charge is legitimate. The fact that they waited over six years to affirmatively contact me also would argue that they have ceded right to this claim and should remove it from my record.

Company response to consumer: Closed with explanation