Consumer complaint received 2025-06-01 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Deposits and withdrawals
Company: JPMORGAN CHASE & CO.
State: MI

Complaint narrative:
I have reason to believe Chase is violating the expedited funds availability act. After doing some research and reading through many XXXXXXXX XXXX, it appears Chase is intentionally holding check deposits and not making funds available as outlined in EFAA law. 

Law summarized below : Statutory holds can be placed on almost any deposit ; under this type of hold, the bank must make the first {$200.00} of the deposit available on the next business day after the deposit is made, the second {$600.00} available on the second business day after the deposit is made, and the rest on the third business day. 

Large deposit holds are placed when the total of deposits made in one business day is more than {$5000.00}. The availability rules for the first and second business day after the deposit are the same as for a statutory hold, but on the third business day, the bank must make {$4800.00} of the deposit available, with any remaining amount made available on the seventh business day after the deposit. 

New account holds are placed on deposits made to accounts that are less than 30 days old. These holds are lifted on the ninth business day after the deposit. 

Exception holds are used for accounts that have been frequently overdrawn, or when banks have reason to suspect that a deposit is legitimate. In rarer cases, they may be used if the bank branch suffers a power outage or a computer system failure. In most cases, however, exception holds are used when an account has been overdrawn for at least six business days out of the six months prior to the deposit, or at least two business days if the account has been overdrawn in an amount more than {$5000.00}. An exception hold may be placed if the bank suspects that the check is fraudulent or wont clear. It may also be placed on an instrument that has been previously returned for insufficient funds. Exception holds are lifted on the seventh business day after the deposit is made. 

Im referencing this as Chase refuses to release a portion of my funds and forcing me to wait out 10 days for the check to clear whichs is unreasonable. 

I received a check from my XXXX XXXX  Trustee as my case ended. These were funds not dispensed to creditors being held in trust for that purpose. By law any funds not used are to be dispensed back to the debtor. 

I used the mobile app to deposit the check. Nothing on app stated they may hold funds for 7 business days. Only a message that states the deposit may be held for review, which it were and soon started pending as a transaction on my account Friday afternoon. I decided I would like to take the check directly to XXXX XXXX XXXXXXXX  and called Chase to inquire about cancelling my deposit. I was told once its submitted they cant change anything. I asked about when it will be released. I was told as soon as its done pending I could call and they will release it earlier no problem. I mentioned this as I received an email it wont be available until XX/XX/XXXX. 

Saturday I called and spoke to someone named XXXX who informed me I will have to wait the entire period that by law they can do this. Apparently Chase is use to misconstruing things. Thats not the only thing the says. If Chase would have cancelled the deposit I would have taken it to the bank who issued the check and cash it there. 

My account isnt new within the past 30 days. Ive never overdrawn or wrote bad checks on this account or any account Ive ever owned. My check is under {$5000.00}. Chase isnt making any portion of my funds available for 7 business days. There is absolutely no reason to believe the check wont clear as the check is directly from the XXXX XXXX XXXXXXXX, a Federal employee! They can be contacted easily or Chase could have simply called XXXX XXXX Bank to verify funds. 

Chase is violating the law due to their own incompetence in identifying a system glitch that allowed individuals to deposit bad checks into the atm machine and withdraw funds committing fraud. They need to wake up and take responsibility versus making my customer experience a living nightmare! I will never cask another check unless its in person at the bank that issued it or Ill flat out deny payment if the bank isnt accessible to me locally.

Company response to consumer: Closed with explanation