Consumer complaint received 2022-07-05 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
I recently opened an account with Chase Bank online to be able to pay my mortgage that is also held with Chase Bank. I set up a direct deposit from my employer in the amount of {$950.00} per pay period. My first direct deposit was credited on XX/XX/2022, which was not enough to cover my mortgage payment so I went online and completed an online deposit in the amount of {$1500.00} on XX/XX/2022. On XX/XX/2022 I received a letter from Chase stating that my account has been frozen and may be pending closure. I then called Chase 's fraud department on XX/XX/2022, to inquire. I was told by the rep that it was pending closure due to my online deposit. He then asked where I received the check, who wrote it to me and why. I answered all of the questions he asked he then stated that the maker of the check would need to walk in to a Chase Bank to verify the validity of the check because they believe it is fraudulent. I let him know that I was okay if they wanted to place a hold on the check until it cleared the other bank and if he could provide me with a release date and when the funds would be available. He then stated the only way to clear up the matter is to have the maker of the check walk in to a Chase Bank with 2 forms of identification to verify that he wrote the check. I asked to speak with a manager as this was an absurd request and that they were restricting collected funds from mob direct deposit due to a deposit they assume is fraudulent. He then transferred me to XXXX, a manager in their fraud department. She also stated that the only way to resolve this issue is to place a stop payment on the check or have the maker walk in to a Chase Bank. I let her know that they were violating Reg CC and needed to provide me with a funds availability date, She then stated that the check was illegible and they could not read the check # and that a stop payment would need to be placed on the check in order for them to release the restriction on my account. I then asked, if the check is illegible how can it be processed in order for it to be returned with a stop payment? I asked again, at what point would my funds be available so that I can close my account and make my mortgage payment. She then stated that the account would be closed on or about XX/XX/XXXX but never gave me a date for release of funds. I then escalated my complaint to their corporate headquarters which just circled me back to their fraud department. I then spoke with XXXX who stated that the check was illegible and a stop payment would need to be placed or the maker of the check would need to walk into a Chase branch with 2 forms of ID to verify the check has cleared. I then stated they have not allowed enough time for the check to have cleared the other bank as it was done over a holiday weekend and if the check is illegible how are they going to receive the rejection from the other bank with a stop payment. At that point I was frustrated as they could not get their story straight and I asked again, when will my funds be available and when will my account be closed and how will I receive my funds? She stated 10 days however, my funds would not be available or be sent back to me until they receive a stop payment return from the other bank or the maker of the check walks into a local branch. I then let her know that if I place a stop payment on the check then that would warrant the closing my account for fraud. At this point I have no idea when my funds will be sent back to me however, Chase is not following the regulatory requirements of disclosing their funds availability policy and make up their own rules as they go. This is absolutely absurd to ask a maker of a check to walk in to a local branch to prove they issued an " illegible check ''. If the check was truly illegible then the issuing bank will return referent to maker and I do not see then point of placing a stop payment. If the check was truly illegible then it should have been rejected by Chase and reversed from my account,

Company response to consumer: Closed with monetary relief