Consumer complaint received 2022-10-03
Product: Money transfer, virtual currency, or money service — Check cashing service
Issue: Fraud or scam — 
Company: JPMORGAN CHASE & CO. (IL)

I recently formed an XXXX  for my XXXX XXXX XXXX, and opened a business account with Chase to support my XXXX. My account was wrongfully terminated by Chase, by Chase 's own admission. And yet I still have not been able to recover all of my money. 

Thursday, XX/XX/XXXX I deposited 3 checks ( the first time I had ever deposited checks into this account ) via mobile deposit into my new Chase business account, one from Client A for {$1200.00}, and two from Client B for {$520.00}, and {$570.00}. I should mention that I have been working with Client B since spring of this year, so I have deposited a number of checks from them in my personal account without issue. 

Friday, XX/XX/XXXX I saw I had an email that my business account had been overdrawn by {$520.00} and frozen, so of course I immediately called the bank. They told me that this was because the checks I deposited were flagged as potentially fraudulent, and that I needed to provide phone numbers for the issuers of the checks in order to verify them. Okay, no problem. I provided the information, and Chase claimed that the phone number for Client B was not listed under public domain, so they were unable to verify it, but that they were able to verify the check for Client A. So then I provided them with the personal phone number of Client B 's finance person, who also happens to be their CEO, and Chase claimed that they were also unable to verify his number. Niether Client B nor their CEO have any other phone numbers... this is an established nonprofit, they have all of their paperwork in order. It makes no sense that Chase is saying the phone number is invalid. After going back and forth about this, the last person I spoke with advised me to wait until Monday, XX/XX/XXXX -- that perhaps the checks would clear, and in that case my account would be unlocked. 

Monday, XX/XX/XXXX By Monday the checks cleared, my account was unlocked and it showed that my balance was {$2200.00}. I was irritated by the hassle of the previous week, but everything seemed like it was resolved, so I was willing to just let it go as a fluke. 

Tuesday, XX/XX/XXXX I tried to transfer money from my business account to my personal account to pay myself. As soon as I tried to transfer, the business account was frozen again. I called Chase again to see what's up, and they told me they were closing my account because I was not able to verify the checks from Client B. Why had the checks cleared and my account been unlocked? No explanation. How would I get my money back? The rep said that perhaps I could recover my money if I went to the local Chase branch. 

Wednesday, XX/XX/XXXX I went to the local Chase branch. The teller I spoke to called the fraud department, and confirmed that my account had been closed because 10 days had passed since I had been unable to verify the checks from Client B. I had brought the actual checks with me to show her ( I keep all my paperwork just in case ), Client B even gave me their tax ID number as further proof. She said there was no undoing it, and that because my account had been shut down due to fraudulent activity, that I would be unable to ever open a business account with Chase ever again. Then she went on to reprimand me, that I should have deposited my checks in person since it was a new business account ( for the record, this is not communicated anywhere when opening a new business account with Chase, and it is strange to offer mobile deposit as a service if you're not supposed to use it ). She would not give me an answer as to why my bank account had been unlocked and why the checks had cleared, why my account showed that it had {$2200.00} in it ( leading me to assume that everything had been resolved XX/XX/XXXX ). I asked about what would happen with the money, she said that the checks " were returned '' -- the way she worded all of this implied that the money had been returned to my clients. 

I contacted my clients after this, nobody had received any money back from Chase. I decided to wait a few days to see if my clients would receive the money, and that brought me to this week. 

Sunday, XX/XX/XXXX I saw received a check from Chase, dated XX/XX/22 for {$1000.00}. 

Tuesday, XX/XX/XXXX I called Chase to inquire why the check I received for the " remaining balance ( s ) '' for the funds in my business account was only for {$1000.00}, and not for the full {$2200.00} that had been the original balance. The representative told me that Chase was withholding the {$1200.00} until it could verify the check from Client A. I told the representative that this whole time I have been told that the check from Client A had been verified, that it was the two checks from Client B that couldn't be verified and that was the whole reason my account was shut down. He claimed that no, the checks from Client B had been verified, that he needs the phone number to Client A in order to verify their check. I was baffled, but I gave them Client A 's phone number again. Unfortunately no one picked up on their end ( they are a small organization, nobody was in the office at that moment ). He advised that I go to a local branch tomorrow and have them call Client A again. 

Wednesday, XX/XX/XXXX After making sure that Client A 's accountant would be in office, I called Chase again to have them call Client A again. After being passed around to five different representatives ( because everyone kept claiming that this wasn't under their department 's jurisdiction ), I finally landed on someone who claimed they were the " front end '' fraud department. He claimed that the phone number I was providing for Client A is not the number they are registered under ( even though the literally the day before, the representative had accepted that phone number ). I do not know what database Chase is pulling these phone numbers from, but my client only has this one number. They are also a nonprofit, all of their records are under the phone number I am providing. I confirmed with the Client A that they have this phone number registered with the IRS and XXXX. Plus, Chase already verified this client 's number before, so how is it that suddenly this number is invalid? I asked how it is possible that Chase was previously able to verify this number, that my account had been terminated because they claimed that I couldn't verify the checks from Client B, and now the checks from Client B are verified, and the check from Client A isn't .... He claimed that I was previously dealing with the " back end '' fraud department, and that the departments operate separately from one another.

Chase literally admitted to me that between the two fraud departments, that all the checks have been verified. The current issue here lies that their database that they verify checks through is outdated, and has an old phone number for my client. It makes no sense that the bank would allow a check to clear and be holding on to these funds if this check was indeed fraudulent. As the situation stands, Chase bank has effectively stolen {$1200.00} from me/my client.