Consumer complaint received 2023-08-11
Company: JPMORGAN CHASE & CO.
State: MD
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Funds not handled or disbursed as instructed

Complaint:
I recently opened a business checking account with Chase Bank for my XXXX XXXX small business. The first check I deposited was for {$3700.00}, on or around XX/XX/2023, which was payment from my first client. Chase proceeded to put a " Fraud Hold '' on the account while they verified and processed the check, locking me out of access to the account and only providing a hotline phone number. After calling the Fraud Department I was told that Chase has to contact the issuer ( " Maker '' ) of the check to verify that I, their client, have not committed fraud. To satisfy this verification process Chase told me that the Maker would have to provide a verified phone number that they can contact. 

I found this very odd because I have worked in financial crime investigations for 6 years and am certified by the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  and have never heard of a financial institution contacting a non-client for investigations. If fraud is suspected a XXXX is filed and if a certain threshold of risk is crossed the account is closed, but the funds are returned to the client unless there is law enforcement intervention, or a civil hold has been placed. 

Through further discussions with managers in Chase 's Fraud Department I found out that they use a third-party screening tool, XXXX, to verify business contact details. The manager also notified me that the business from which I received the payment from did not have a verified number in the system and he was unsure of the process to add any information to the profile since it is a third-party tool. This began a series of circular conversations where they say they need a verified number, I ask how that would be possible since none exist in their system to confirm with, and they say it is not possible to add one. After one of these particular frustrating conversations the manager admitted that there is no way to reverse the suspension without following this procedure and that my funds will remain in Chase 's custody until the account is deemed dormant. 

I have begged them to just send the funds back to the Maker 's bank, XXXX XXXX XXXX if they view me as a fraud risk, but they refuse even after XXXX has requested on behalf of their client. My funds are being held hostage in an infuriating Kafkaesque spiral of bureaucracy. They will not even provide contact to their legal department for further dialogue outside of their Fraud Department. 

This was my first experience with banking in the small business world and it incredible discouraging that a financial institution has the power to extrajudicially seize funds under the guise of fraud protection, but does not even see fit to return the suspected funds to the presumed victim. This is nothing like I have ever seen in my many years in Anti-Money Laundering and frankly it feels predatory and targeted to small accounts that they feel will not have the resources to push back.

Company response to consumer: Closed with explanation