Consumer complaint received 2022-07-07
Company: JPMORGAN CHASE & CO.
State: CA
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I bank with Chase Bank. My account is a business account. We use bill pay to pay vendors on this account. 

On XXXX I sent a check to a vendor, XXXX XXXX XXXX XXXX XXXX XXXX. This check was for {$650.00}. ( a copy of the actual check and information is attached ). 

The payee on the check is correct, as is the mailing address for the vendor. 

The check never arrived to the vendor. Someone stole the check before it arrived. They then took that check to their bank, signed the back of the check and cashed the check. Their bank honored the check, even though the person who signed the back of the check IS NOT the payee. 

After that, Chase paid out the check and debited my account. 

This check was stolen and then fraudulently cashed with a name that does not match the payee. 

I notified Chase bank months ago. First I spoke to their fraud department who told me they would not be able to take care of the fraud. I did not agree with this, in fact I was furious, that they honored a stolen and then improperly endorsed check. They sent me a letter stating this and saying As we discussed and agreed I NEVER agreed to this. 

So I went into a bank branch to speak to a manager, XXXX XXXX, XXXX XXXX. In her office she looked into this and assured me that the check fraud indeed would be honored by Chase and was successful in getting my account reimbursed within the same day or two. This was on XXXX and I also got a letter from Chase on this. It said we get credit and that if they determine that the transaction was authorized or correct they would reverse the credits. Of course, as explained, this was NOT authorized, and it was not correct, it was a stolen check, with an incorrect endorsement signature that doesnt even match the payee. 

The fraud department did ask for me to fill out an affidavit which I did, with all supporting details. ( that information is attached as well ). Also, the payee on the check ( my vendor ) filed a XXXX fraud complaint and also communicated with her bank to prove she did not get the funds, etc. 

Since this time, I received another letter on XXXX stating that the transaction was authorized and that they are now removing the credit. 

I would like to make a formal complaint about this. I have been mistreated and from the documents provided it is clear that the check never was received by the vendor. Someone stole the check and then fraudulently cashed it. Both their bank AND Chase honored the stolen and improperly endorsed check. 

I expect Chase to honor my claim. Thank you in advance for your assistance on this. 

Attachments Copy of check sent with unauthorized signatory on back of check XXXX email from my vendor ( the payee ) from her bank confirming the check was never received XXXX letter from Chase stating they wont honor fraudulent check reimbursement XXXX letter from Chase stating that they will honor fraudulent check reimbursement XXXX email to Chase with all the information they requested on the fraudulent check XXXX letter from Chase, stating they wont honor the fraudulent check reimbursement

Company response to consumer: Closed with explanation