Chase Freezes Customer Account Worth Whopping $200K in New Scandal

December 1, 2023

Chase freezes a customer account worth a whopping $200K in a new scandal that has left the bank giant under new scrutiny.

The customer, who lives in Hawaii, says he opened his Chase account two decades ago and was shocked to learn $200,000 was suddenly inaccessible, reports The-Sun.

According to the customer, Chase told him he’d have to visit a branch in person to try and get his money.

And although Chase has ATMs in Hawaii, it does not have any physical branches, which forced the customer to fly 2,400 miles to Los Angeles in an attempt to resolve the issue.

“I don’t know why… I’ve had no problem with them for the last 20 years… But ok, it’s their choice and nothing I can do.”

As for why his account was shut down without warning, the account holder says he believes a large Zelle transfer may have something to do with it.

In the US, banks can close accounts at their discretion for a number of reasons, including concerns about fraud and illegal activities, too many overdrafts or dormancy.

Banks typically send notices to account holders and mail checks for the balance to addresses on file.

When banks are concerned about potential fraud, they also file Suspicious Activity Reports (SARs) to law enforcement.

Banks filed about 830,000 SARs in 2014, a number that steadily increased to about 1.4 million in 2021, according to the Banking Policy Institute.

Only 4% of SARs trigger a follow-up from authorities, and a small fraction of the follow-ups result in arrests and convictions.

Also Read: The US Treasury Direct is Now Freezing Customer Accounts

Other Banking News Today

An unexpected wave of bank closures now hits Florida as more major branches are scheduled to shutter soon.

“Clients use digital banking more than ever for their everyday financial needs, and come into financial centers for more complex transactions or discussions about their finances.

So we have been adjusting our retail network where centers are located in close proximity to one another, or where client traffic has diminished significantly,” Bank of America said in a statement.

Between 2017 and 2021, 9% of all branches — almost 7,000 locations— shut their doors.

Florida had the fourth most bank closures of any state due to the massive customer demand for online banking.

The following bank branches are scheduled to soon close in Florida:

Wells Fargo. 1600 Ridgewood Ave, Holly Hill (added to the list this week).
Wells Fargo. 5849 Okeechobee Blvd, West Palm Beach (added this week).
Wells Fargo. 5355 Town Center Rd, Boca Raton (added this week).
Bank United. 1121 North Orange Ave, Winter Park (added this week).
US Bank. 515 North Flagler Dr, Suite 2100, Palm Beach
Wells Fargo. 12233 North Florida, Tampa
Wells Fargo. 219 Indian River, Ave, Titusville
Wells Fargo. 2307 Del Prado Blvd, Cape Coral
Wells Fargo. 3131 West Hallandale Beach Blvd, Hallandale
Wells Fargo. 10191 Cleary Blvd, Plantation
Wells Fargo. 113 South Tennessee Ave, Lakeland
Wells Fargo. 4901 Tamiami Trail, South Naples
Trustco Bank. 1084 Lee Rd, Orlando
Bank of America. 126 East Olympia Ave, Punta Gorda

In July, Wells Fargo laid off over 100 employees in Orlando’s consumer and small business banking division.

“Despite the push to digital banking, many customers prefer to do their banking in a physical location,” reports Ash Jurberg.

“There is a fear that closing so many branches can lead to ‘banking deserts’ and adversely impact communities.”

Also Read: A US Bank is Now Denying Customers Access to Money

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