Consumer complaint received 2023-08-18
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: JPMORGAN CHASE & CO. (NJ)

Chase was explored as a bank to open a small business checking account with and it offered a link to receive a bonus of about {$300.00} if and when certain tasks were completed after the account was opened. On XX/XX/23, a small business checking account with Chase was opened online with account number ending on XXXX. The process required that the Business of Formation certificate be uploaded, which was done. The Business of Formation certificate includes the name of the business, the name of the registered agent, and name of the business owner. The account was opened as soon as the requested information was provided. Chase gave the option of making check deposits via the mobile app and it required that this be done as part of the required tasks for the bonus to be awarded. Check ( # XXXX ) in the amount of {$2200.00} was deposited via the mobile app that was made out to the business owner. The check was accepted. A couple of days later, I attempted to access the account online to confirm that the check cleared and received an error message indicating the account was restricted. I assumed that perhaps it was system error and waited a few days to try again. I tried again after a few days and received the same message. I opted for calling the number provided to find out what was going on. At that time, I was informed that the account was restricted due to an issue with Chase not being able to verify the check. I later received a letter from Chase indicating that it could take about 7-10 days for the check to clear. 

On or about XX/XX/23, I visited the Chase XXXX XXXX branch and was informed by the teller that the account was closed since the check could not be verified and that check XXXX I deposited would be mailed out to me. I called Chase at XXXX opt. XXXX to get further clarification. I was then informed that in fact the account was closed since the issue was not resolved in a timely manner. I was informed that the issue was that they could not verify check. I asked what needed to be done and I was asked to provide the phone number for the business that issued the check. I provided all the phone numbers for all the partners within that business. I was then told that Chase uses a system to verify the check and that this system could not find that any of the phone numbers I provided were linked to the business that issued the check. I was asked to contact the business and get the phone number that was linked to their business, which was done and was provided with the same phone numbers. The issue was not resolved. 

Chase then indicated that the business that issued the check could put a stop to the check and issue another check to me. I followed this advice and was given a second check ( # XXXX ) which I cashed with another bank without any issue. However, the business that issued check XXXX could not put a stop to the check. This caused the reputation of my business to be tarnished. 

On XX/XX/23, the business that issued both checks notified me that both checks were cashed and asked why. They also provided a screen shot of their account, which shows that the check deposited into the XXXX account was cleared on XX/XX/23. I followed up with XXXX about check XXXX and they would not confirm that they cashed the check. They continued to say that they could not verify the check. I was then told that they could also not link me as the business owner to my business despite me having provided the Business of Formation certificate. Chase would end the phone calls indicating that they could not resolve the issue.

I continued to contact Chase and provided the contact information for the business that issued check XXXX and Chase insisted that their system could not verify the check. When questioned as to why they cashed the check, they indicated that this was done because the check was deposited into my business account. They indicated they could not release the funds to me because they could not verify the check. I asked for Chase to contact the officer for the bank account from which the check was drawn to help resolve this issue and they indicated they could not contact them. I was informed that if the issue was not resolved, they would hold the funds for 1 year and then release the funds to the government. They would not tell me where the funds were being held. 

On XX/XX/23, I visited the Chase branch in XXXX, NJ and with XXXX XXXX, who upon reviewing the letter sent by Chase indicated that the letter was vague and did not provide me with much information about the issue. XXXX XXXX proceeded to contact the XXXX XXXX Department and asked what needed to be done for the issue to be resolved. XXXX XXXX confirmed that I was at the branch in person, provided my driver 's license, provided the XXXX letter from the IRS, provided the Business Formation certificate that confirmed I was the business owner as all documents provided included my name and address. XXXX XXXX was asked to fax the Business Formation certificate, which he did. Nothing else was asked and we were told that they would review the matter. XXXX XXXX indicated that nothing would be resolved on XX/XX/23 since it was Friday and they would work on the issue on Monday XX/XX/23. XXXX XXXX indicated he would give the Deposit Review Department until XX/XX/23 to work on the issue and he would follow up with them to get an update. XXXX XXXX indicated that most likely Chase would send me a check for the amount of check XXXX. I followed up with XXXX XXXX on XX/XX/23 since I had not heard from him at which time he did not remember me or my issue. XXXX XXXX indicated he did not receive any notification from the Deposit Review Department and that in order for him to follow up with the matter, I would need to visit the branch in person. 

On XX/XX/23, I called the Deposit Review Department and was again told that the issue was that they can not verify the check. I asked why they cashed the check if they could not verify it and they indicated that the bank from which check XXXX originated, cleared the funds so this allows Chase to take the funds. They again indicated they could not release the funds to me because they could not verify the check. I asked them to return the funds to the business where the funds were taken from and Chase indicated it could not do this. I was informed that the business that issued the check could " pull the funds '' but could not explain what this process entailed. 

On XX/XX/23, I spoke to the officer for the bank account for the business that issued check XXXX to request assistance. The officer, who has 20 plus years experience in banking, informed me she did not understand why Chase was doing this and why they would not release the funds and that this did not make any sense to her. The officer did not know what Chase meant by " pulling the funds ''. 

On XX/XX/23, I contacted Chase again to try to resolve the issue. Chase continued to say that they can not release the funds to me until they verify the check, which they could not do despite the information I provided to them as requested. Then they indicated that they could also not link me to my business as the owner and if these 2 matters are not resolved, they would hold the funds for up to 2 years and then release the funds to the government, and then I would have to try to get the funds from the government.

I have called Chase multiple times, provided the information they requested both online, via phone, and in person, which they keep indicating is not sufficient. I have offered alternatives for the issue to be resolved, which they have declined to consider. 

Chase has arbitrarily taken funds from a business and these funds do not belong to Chase. Chase is adamantly refusing to release the funds to my business or return the funds to the business that issued the check despite all information requested by them being provided on multiple occasions.