Consumer complaint received 2020-02-24
Company: JPMORGAN CHASE & CO.
State: FL
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem making or receiving payments

Complaint:
On XX/XX/XXXX I issued an online bill payment for {$1400.00} through my Chase bank account to my mortgage company. I have done so successfully for over 24 monthly payments, and never been late, so there was not a problem with my data entry or anything within my control that could have been done differently. The payment had a guaranteed delivery date of XX/XX/XXXX. The bill payment amount was pulled from my account on XX/XX/XXXX by Chase Bank. The payment was issued by check and the payee never received the XXXX payment and considered my mortgage late as of XX/XX/XXXX. Because I have scheduled automatic payments for this account, my mortgage payment funds of the same amount for XX/XX/XXXX, went out of my Chase account on XX/XX/XXXX with a guaranteed delivery date of XX/XX/XXXX and was deposited by the payee on XX/XX/XXXX. My mortgage company applied the XXXX payment to my XXXX and reflected XXXX as still due. On XX/XX/XXXX I received a notice in the mail from my mortgage company stating that they told credit bureau reporting agencies about a missed payment. This was the first indication that there was a problem regarding my mortgage. I reviewed my mortgage account online and I immediately provided proof of payment for the XXXX payment in question to dispute late fees and credit reporting errors. Chase denied responsibility for late fees and the payment failure. I was told by Chase that I would have to stop payment to get the money back to my account. I was told that it would take 2-5 business days and several days later I was notified it could take another 5 days. I was livid and threatened legal action. The funds were returned XX/XX/XXXX. I had explained that this is a real hardship to have to wait any additional time because I had already made a replacement payment over the phone to my mortgage company on XX/XX/XXXX to bring my account in to good standing and avoid additional late fees. I also have yet another mortgage payment to issue for XXXX very soon. I asked Chase Bank why there is no notification of my payment not going through and they replied they simply don't do that. I asked why it's not on my bank statement that payments are outstanding and they replied that they don't do that either. I asked where my money actually was since they took it out my account on XX/XX/XXXX. There was no response to that question. I was able to confirm that Chase moves the funds to a corporate account that the bill payment check would draw against when deposited/cashed. Why do they do this and remove the visual cue that a payment is outstanding/check hasn't cleared from their customers view?? I asked what would happen if the Payee never cashed/deposited the check. I was told that they would return the funds after 90 days. I am skeptical and I consider this to be a very misleading practice as a whole. In review of my credit report, I see that Chase Bank 's mortgage lending division reviewed my credit report information 5 times over the past 10 months. For them to hold that permission -- which I can not find anywhere in the hundred + pages of legal disclosures of my accounts and on-line banking and services, to review my credit report on an on-going basis and at the same time not be obligated to not notify me of items not cleared, is just plain wrong. My complaint is with Chase Bank for what I see as failure to make the payment for my mortgage and the subsequent delinquency of my account standing. I want to know exactly what Chase did with my money between XX/XX/XXXX and XX/XX/XXXX when I finally got it back. I would like to know how much was earned on said funds connected to my bill payment that " failed '', while creating hardship for my payee, damaging my credit and my spouse 's, and creating red tape to deal with for days, months on end to remedy it.

Company response to consumer: Closed with explanation