Consumer complaint received 2025-11-20 00:00:00
Product: Checking or savings account — Checking account
Issue: Closing an account — Funds not received from closed account
Company: JPMORGAN CHASE & CO.
State: TX

Complaint narrative:
I am a XXXX XXXX, and my role is to negotiate home insurance claims on behalf of homeowners. In most cases, when a settlement is reached, the insurance company sends the payout check to my office. Once I receive the check, I deposit it, and after the funds clear, I issue a check or wire transfer to the homeowners preferred XXXX, provided there is a signed contract between the XXXX and the homeowner. 

In this particular situation, on XX/XX/2025, my office assistant went to a Chase Bank branch to deposit the settlement check. Unfortunately, the banker did not mention that the check required an endorsement from the mortgage company listed on it. Additionally, my assistant did not notice that the mortgage company had not signed the check. The banker proceeded with the deposit, and at that time, my online banking reflected that the funds would be available within the next 57 days. 

The following week, when I checked my account, I discovered that it had been restricted. I immediately contacted Chase to determine the cause. I was informed that the bank needed to verify all parties named on the check before releasing the funds. Chase confirmed the endorsements from both homeowners ; however, they stated that they also needed to verify the mortgage company through a direct phone number. I explained that the mortgage company is a large corporation with department-based communication, and it would be unlikely for me to obtain a direct contact person. 

Chase insisted that they would not release the funds until the mortgage company confirmed the check. I then contacted the mortgage company to request the required verification, and they informed me that they do not confirm checks over the phone. They stated that the only way they could endorse or confirm a check would be if the bank sent them a legal copy of the check for endorsement.

I relayed this information to Chase, but the bank stated that they could not send a legal copy because it was against their internal policies. I then requested that Chase return the funds to the insurance company so that a new check could be issued and properly endorsed. Chase informed me that they could not return the funds unless the insurance company directly requested the refund.

I subsequently contacted the insurance company, but they advised me that because the funds were already in the banks possession, they were unable to request them back. I called Chase again and communicated what the insurance company stated. Chase then informed me that they would keep the funds and suggested that I ask the mortgage company for an exception to their policies. I explained that the mortgage company does not make exceptions, just as Chase does not, and requested any alternative solution. I reminded them that the funds do not belong to me ; they belong to the homeowner, who must use them for necessary repairs to avoid potential cancellation of their insurance policy. 

Despite this, Chase stated that they could not take further action and that my account would be closed.

Company response to consumer: Closed with explanation