Consumer complaint received 2020-05-15
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: JPMORGAN CHASE & CO. (TX)

I applied for a new Chase Freedom Card which was intercepted from my mail and used fraudulently in the XXXX area. I have never had physical possession of this card. I reported the fraudulent activity as soon as I learned of it and a replacement card was mailed. However, after 6 weeks, Chase suddenly decided that I am liable for the two initial transactions made on the card the day before they closed the account in XXXX. 

I tried numerous times to contact Chase once I learned they were trying to hold me liable, but was on hold for almost 2 hours and the person I finally was able to speak to was not able to determine why I was being held liable and attempted to transfer me to Fraud Recovery. The representative then found that they were not taking calls and instead provided an email address ( claiming COVID19, but under the same circumstance, I was able to reach representatives from two other banks for this identity theft issue and solved the problem right away ). I tried to contact Chase through email as the phone voice message recommended and was given a " direct phone line '' to get more information, but calling the number just led to another voicemail recording saying they are not taking calls and gave the same email address again. Call->email->direct line -> same email. Chase made a loop that would not allow consumers to contact anyone for productive communication. 

I sent multiple emails to Chase giving the timeline of events, the police report number, the FTC Identity Theft Claim reference number, and asking them to provide me with the evidence they were using to claim that I was the one that made the purchase. I also informed Chase that I was already a XXXX member and that the thief created a new account in my name at a particular XXXX in XXXX on the day of the fraudulent charge. Chase instead decided to accuse me, a longtime loyal customer, of trying to defraud them of $ 9000+ without showing any investigation made or evidence of me personally activating their credit card. I am also curious why a $ 9000+ transaction on a brand new credit card was not flagged, and only subsequent charges of smaller amounts flagged. Was the signature verified on the transaction? I never got a single response or acknowledgement of receipt from all the four emails I submitted to Chase. While I keep receiving the same, impersonal, cookie-cutter letters weeks later ( attached ). These condescending letters ( which I have received four in total ) provide no information other than we reviewed your claim and found them to be valid. You are responsible for paying. We have reported to the credit bureaus that you disagree with our findings. Be assured that we investigated the claim thoroughly. No explanation. No other means to proceed other than pay up. No information on my rights under the Fair Credit Billing Act as consumers should only be liable for up to {$50.00} when a card is physically stolen. I did my due diligence and reported the card stolen as soon as I learned of it. 

Since Chase decided to leave the investigation to the accused, I called the XXXX where the transaction took place and within ten minutes of speaking to the Membership Supervisor, learned that they had a photo of the new membership that was created under my name on that date ( that made that transaction ), with a completely different picture than the picture XXXX already had on file of my real membership ID. I learned they also had video surveillance footage of the exact transaction that took place and it matched the newly created membership. This is the most basic level of digging that Chase should be doing and they failed to do so. 

I informed the sheriffs office about XXXX having evidence. The sheriffs investigator obtained them and allowed me to have a copy of the transaction receipt and a copy of the fake ID of the man that made that transaction that day to submit to Chase as proof ( the investigator was surprised that the bank was still holding me liable at this point ). I have attached a photo of the provided evidence with my real drivers license to show the difference, and the investigators information if Chase needs more proof that it was not me. The police already knew the identity of the man. Since Chase has informed me via letter that they will no longer look into this case, I am submitting this information to them via this CFPB complaint. 

Being a longtime member of Chase and having spent tens of thousands per year using their credit products, I am extremely disappointed in their treatment of loyal customers. There was absolutely nothing I could have done differently, as all I did was apply for a new credit card, and reported it stolen as soon as I learned of it. Communication was extremely difficult compared to any other financial institutions. Furthermore, essentially accusing me of trying to defraud them of $ 9000+ without providing any evidence or recourse and putting the burden of proof on me and reporting it to the credit bureaus before actually speaking to me in person is irresponsible and lazy. Trying to bully me into paying for their own systematic inadequacies with Fraud Detection and Investigation without informing me of recourse or my rights under the Fair Credit Billing Act seems like a violation of law and they should not be allowed to do this to other consumers. Chase made a mistake without doing any investigation and it wasted me and my wife 6 weeks of time on top of the financial stress they cause for a small family with two young children during a global pandemic. I was in the middle of starting a new business and their decision to maintain a $ 9000+ balance on my credit card made it impossible to apply for a new business credit card due to the artificially high credit utilization ratio ( I have excellent credit and always try to maintain a low balance ). This has delayed the startup of my business by several months and has affected our finances significantly.