Consumer complaint received 2025-11-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Cashing a check
Company: JPMORGAN CHASE & CO.
State: GA

Complaint narrative:
Subject : Denial of Check Fraud Claim for Altered/Washed Check ( UCC 4-406 Dispute ) I am writing to dispute the denial of my recent fraud claim regarding a {$10000.00} check ( Check # XXXX ) that was stolen, " washed '' ( altered ), and fraudulently cashed from my Chase checking account. 
The denial of this claim is unacceptable. As a long-term, loyal Chase customer with both my mortgage and all banking accounts entrusted to you, I expect a full and immediate reimbursement, as required under the Uniform Commercial Code ( UCC ). 
Summary of Facts The following is a clear timeline of the events : 1. XX/XX/XXXX : I mailed my XXXX tax payments from the XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX, XXXX, GA ) via Certified Mail. 
Check # XXXX ( IRS ) : Tracking # XXXX. This check was successfully delivered on XX/XX/XXXX. 
Check # XXXX ( GA XXXX. of XXXX ) : {$10000.00}. Tracking # XXXX. This envelope was compromised. 
2. XX/XX/XXXX : Check # XXXX, which was made out to the " Georgia Department of Revenue, '' was washed and fraudulently altered to be payable to a " XXXX XXXX '' and was subsequently paid/cashed by XXXX Bank and cleared from my Chase account. 
3. XX/XX/XXXX : Having filed for a tax extension, this was the deadline to finalize my filing. On this day, I was notified by the Georgia Department XXXX XXXX that my {$10000.00} tax payment was never received. 
4. XX/XX/XXXX : On the same day I was notified of the fraud, I took immediate action : I filed a fraud claim with my local Chase Bank branch. 
I filed a mail theft claim with the XXXX XXXX XXXX ( Ref # XXXX ). 
I filed a fraud report with the XXXX XXXX XXXX ( Case # XXXX ). 
5. XX/XX/XXXX : Chase notified me that my claim was denied, citing that I had failed to report the fraud within the XXXX time limit. 
1. Basis for Dispute : Unjust Denial Based on Reporting Timeframe The denial of my claim due to a XXXX reporting limit is misapplication of the rule. Chase 's position is based on the time since the check was cashed ( XX/XX/XXXX ), not the time since the fraud was discoverable by me. 
I am the customer, not a forensic accountant. I had no reason to believe the check was not paid properly, as the funds had left my account. 
I could not have reasonably known about the fraud until the intended payee ( the GA Dept. of XXXX ) notified me of non-payment. 
I reported the fraud to Chase, the XXXX, and the police on the very day of discovery ( XX/XX/XXXX ). My reporting was prompt and immediate. 
To hold a customer responsible for third-party fraud is contrary to the principles of customer protection. 
2. Legal Basis for Reversal of Denial : Liability Under the Uniform Commercial Code ( UCC ) As a large, FDIC-insured bank, Chase has a clear legal obligation to protect its customers from check fraud.

Under the UCC, a bank ( the XXXX Bank ) may only charge an item against a customer 's account if it is " properly payable. '' A check that has been " washed '' to alter the payee is the definition of an altered instrument. 
An altered instrument is not properly payable. 
Therefore, Chase ( the XXXX Bank ) is liable to me, the customer, for paying this item and must re-credit my account. Chase did not use ordinary care in paying the {$10000.00} to the fraudulent payee. 
My customer relationship is with Chase. The law dictates that my recourse is with my bank. 
After Chase reimburses my account, Chase 's recourse is then against the Depositary Bank ( XXXX ) that accepted the fraudulent check and failed to detect the alteration. This internal, bank-to-bank liability shift is not the customer 's responsibility. 
Demand for Resolution I have done everything a customer is supposed to do : I used Certified Mail for security, I notified Chase immediately upon discovery of the altered check, and I filed extensive reports with all relevant authorities. 
Given the nature of a washed/altered check, I believe Chase failed in its duty of ordinary care to detect this alteration before payment. 
I request a reversal of this claim denial and a full reimbursement of {$10000.00} to my checking account. The payment of this fraudulently washed and altered check was an error by the banking system, for which I, the customer, am not responsible.

Company response to consumer: Closed with explanation