JPMorgan Chase, one of the nation’s largest financial institutions, has come under scrutiny for its practice of closing customer accounts without clear explanation, leaving individuals like a Canadian grandfather and a California attorney grappling with severe financial repercussions.
These closures, often tied to the bank’s fraud detection protocols, have sparked outrage among affected customers who report receiving vague notices and facing significant obstacles in accessing their funds.
Richard Bell, a 69-year-old Canadian national, faced a financial ordeal when Chase unexpectedly closed his bank account, freezing $7,000 of his personal funds.
Bell, a retail software salesman who owns an investment property in Las Vegas, opened the account in 2017 to manage rental income for a planned retirement home.
The sudden closure, which he suspects was triggered by transfers to a foreign bank raising money laundering concerns, left him without access to his money and with a plummeting credit score.
“They suspected something was going on, with the rent money that went to Chase and then it went to RBC,” Bell told The U.S. Sun.
“I think they were essentially accusing me of money laundering.”
Despite repeated attempts to seek answers, Bell received only generic notifications about “suspicious transactions.”
The situation escalated when he flew from Calgary, Canada, to a Chase branch in Las Vegas, where bank staff called the police in an attempt to remove him.
The police declined to intervene, instructing the bank to resolve the issue directly with Bell.
This closure had a cascading effect on Bell’s financial life.
His credit score dropped from above 750 to the low 600s after a related United credit card was canceled due to fraudulent activity, increasing costs for car loans and his mortgage.
“This cancellation severely impacted my credit score,” Bell said, noting that the financial strain forced him to postpone his retirement plans.
Although he eventually recovered his funds, the process was grueling, and the damage to his credit and retirement timeline persists.
Bell considered legal action but deemed it impractical for the $7,000 at stake.
Brian Adesman: An Attorney’s Life Upended
In a parallel case, Brian Adesman, a 32-year-old California attorney, alleges that Chase’s closure of his personal, business, and client trust accounts—holding over $185,000—has “destroyed” his life.
The closures, which occurred without prior notice or detailed explanation, forced Adesman to cancel his wedding, liquidate his retirement savings, and relocate to a caravan.
“They refused to tell me why they were holding my money,” Adesman told The U.S. Sun.
Chase informed him that his funds were “under review” and “being investigated,” but provided no further clarity.
Adesman insists there were no suspicious transactions linked to his accounts.
His ongoing legal battle with Chase has yet to yield results, and more than a year later, he remains unable to access his funds.
He filed complaints with regulators, including the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Attorney General, and the Department of Financial Services, but these efforts have been fruitless.
A Chase spokesperson said that the bank identified “concerning transactions” and acted in accordance with its account terms, referencing a separate lawsuit in New Jersey involving Adesman’s law firm.
The closures have not only disrupted Adesman’s personal life but also jeopardized his professional reputation, as he can no longer access client funds entrusted to him.
These cases reflect a broader pattern of Chase account closures, often attributed to the bank’s efforts to comply with anti-fraud and anti-money-laundering regulations.
According to The New York Times, banks are increasingly closing accounts to mitigate risks, driven by obligations to file Suspicious Activity Reports (SARs) with federal authorities.
These reports are confidential, leaving customers like Bell and Adesman with little insight into why their accounts were flagged.
Chase spokesperson Jerry Dubrowski told Best Life that accounts are closed only after “appropriate review and consideration of the facts,” particularly when transactions suggest potential unlawful activity or when directed by law enforcement.
However, the lack of specific explanations has fueled customer frustration.
Social media platforms like X have amplified these concerns, with users sharing similar experiences.
One X user wrote, “I don’t really trust banks anymore. Ever since chase & boa randomly & wrongfully closed two of my homegirls accounts totaling 90k without reason & wont give them the bread back idk.”
While such posts reflect public sentiment, they remain unverified.
Bookmark: World’s Largest Pension Fund Now Loses $61bn As Dollar Falls
The Consequences of Involuntary Closures
Involuntary account closures can have long-lasting effects.
Business Insider reports that closures due to suspected fraud or unpaid fees may be reported to consumer reporting agencies like ChexSystems, potentially preventing customers from opening new accounts for up to seven years.
Automatic payments and direct deposits linked to closed accounts may fail, leading to late fees or missed income.
For Bell, the closure delayed his retirement, while for Adesman, it dismantled his financial and professional stability.
The Consumer Financial Protection Bureau (CFPB) notes that banks are not required to provide advance notice of closures, leaving customers to react after the fact.
Experts recommend contacting the bank immediately, stopping automatic transactions, and checking ChexSystems reports to dispute errors.
Second-chance banking options may also help those with negative banking histories regain access to financial services.
The experiences of Bell, Adesman, and others highlight the need for greater transparency in banking practices.
Customers and advocates argue that banks should provide clear reasons for account closures and expedite the return of funds.
As banks rely more on automated fraud detection systems, false positives—where legitimate transactions trigger alerts—are becoming a growing concern.
A Reddit user noted that frequent use of payment apps like Zelle or Venmo can raise fraud flags, particularly for new accounts, potentially leading to closures.
Until reforms are implemented, customers facing account closures can take proactive steps:
- Reach Out to the Bank: Call or visit a branch to demand an explanation and learn how to recover funds.
- Halt Automatic Transactions: Cancel direct deposits and withdrawals to prevent disruptions.
- File Complaints: Submit grievances to the Office of the Comptroller’s Customer Assistance Group if the closure seems unjust.
- Review Banking History: Obtain a ChexSystems report to dispute inaccuracies.
- Consider Second-Chance Banking: Explore accounts designed for those with prior banking issues.
The stories of Richard Bell and Brian Adesman underscore the human cost of Chase’s account closure practices.
As banks prioritize regulatory compliance, customers caught in the crossfire face significant challenges.
Greater accountability and clearer communication from financial institutions are essential to prevent such disruptions and restore trust in the banking system.
Also Read: A Massive US Bank Is Now Freezing Money and Closing Accounts Per Reports
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