In recent years, a troubling trend has emerged among major U.S. banks, including JPMorgan Chase, where customer accounts are abruptly closed without clear explanation, leaving individuals and businesses scrambling to regain access to their funds.
One high-profile case, reported by The U.S. Sun, detailed the ordeal of Brian Adesman, a 32-year-old California attorney whose personal, business, and client trust accounts were shuttered by Chase, resulting in the loss of over $185,000 and severe personal and financial consequences.
Brian Adesman, a former Chase customer of over a decade, filed a lawsuit in California alleging that Chase Bank closed his accounts in early 2024 without notice or explanation, withholding $185,649 from his business account and funds from his personal and client trust accounts.
According to court documents, Adesman was promised a cashier’s check for his business account funds within 10 business days, but the check never arrived.
The closure led to a cascade of financial difficulties, including a collapsed credit score, canceled wedding plans, and forced relocation to a caravan.
Adesman’s lawsuit claims Chase provided no justification for the closure, and a bank spokesperson referenced a separate New Jersey lawsuit involving Adesman’s law firm, which he denies knowledge of.
Adesman’s experience is not isolated.
Across social media platforms like Reddit and X, customers have reported similar incidents, with accounts closed unexpectedly and funds held for weeks or months.
A Reddit user in 2023 described having four Chase accounts shut down without notice, leaving them unable to pay bills, while another in 2024 reported a $1,000 business account balance held for seven months.
Why Are Banks Closing Accounts?
Banks, including Chase, have the legal right to close accounts at their discretion, as outlined in their deposit agreements.
According to The New York Times, reasons for closures often include:
- Suspicious Activity: Banks are required to monitor transactions for potential fraud, money laundering, or terrorism financing under regulations enforced by the Financial Crimes Enforcement Network (FinCEN). Large cash deposits, frequent Zelle transfers, or international wires can trigger red flags.
- Inactivity: Accounts with no transactions for extended periods (typically three to five years) may be deemed dormant and closed, with funds escheated to the state.
- Overdrafts or Negative Balances: Repeated overdrafts or unpaid fees can prompt closures.
- High-Risk Activities: Engaging in businesses like online gambling, cryptocurrency, or adult entertainment may lead to account termination due to perceived reputational or legal risks.
Chase’s spokesperson, Jerry Dubrowski, emphasized that closures are a “last resort” to protect customers and the bank, often following “concerning transactions.”
However, customers like Adesman report receiving no specific reasons, which aligns with CNBC’s findings that banks are not obligated to provide detailed explanations.
Also Read: The US Treasury Direct is Now Freezing Customer Accounts
The Impact on Customers
Account closures can have devastating effects.
Forbes notes that when accounts are closed, banks must return remaining funds, typically via check, but delays are common.
If contact information is outdated, funds may be sent to state unclaimed property offices, requiring customers to navigate bureaucratic processes to recover them.
For small business owners and individuals, sudden closures disrupt cash flow, damage credit scores, and trigger debt collection calls.
A 2023 New York Times article highlighted cases where customers lost access to rent or payroll funds, while The U.S. Sun reported a Chase customer whose account closure led to homelessness.
Recent posts on X reflect ongoing frustration. One user, @direestraits, claimed in June 2025 that Chase closed their merchant account after five days, holding funds for 180 days without explanation.
Such incidents fuel public distrust, especially when banks cite vague “back office reviews” or “policy enforcement.”
Banks like Chase are regulated by the Office of the Comptroller of the Currency (OCC), the Federal Deposit Insurance Corporation (FDIC), and the Federal Reserve.
Customers facing closures can file complaints with these agencies, though Adesman’s attempts through the OCC, FDIC, and state regulators yielded no resolution.
Business Insider and Bankrate recommend the following steps if your account is closed:
- Contact the Bank: Request a written explanation and confirm the status of your funds.
- File Complaints: Submit grievances to the Consumer Financial Protection Bureau (CFPB) or OCC.
- Check Unclaimed Property: If funds are missing, search your state’s unclaimed property database.
- Diversify Banking: Maintain accounts at multiple institutions to mitigate risks.
- Monitor Transactions: Avoid patterns that may appear suspicious, such as large cash deposits or rapid Zelle transfers, and notify your bank of unusual activity in advance.
Chase’s Response and Industry Trends
Chase has faced scrutiny for its account closure practices, particularly with Zelle transactions.
A December 2024 CFPB lawsuit alleged that Chase, Bank of America, and Wells Fargo customers lost $870 million to Zelle scams since 2017, prompting Chase to implement stricter Zelle policies, including blocking transactions suspected of originating on social media.
The broader banking industry is grappling with balancing fraud prevention and customer service.
CNBC advises customers to communicate with banks about significant transactions, such as large wire transfers, to avoid triggering reviews.
Meanwhile, Experian notes that while account closures do not directly affect credit scores, associated financial fallout—like missed payments—can cause lasting damage.
The rise in account closures underscores the importance of proactive financial management.
Experts recommend regularly reviewing account terms, maintaining updated contact information, and diversifying banking relationships.
For businesses, using specialized accounts for high-risk industries can reduce closure risks.
As Brian Adesman’s legal battle with Chase continues, his story serves as a stark reminder of the vulnerabilities customers face.
Until banks provide greater transparency, consumers must remain vigilant to safeguard their financial stability.
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