Chase Is Now Being Sued For Closing Accounts Without Warning

December 9, 2023

Chase is now being sued for closing accounts without warning and for wrongfully cancelling transactions.

Sinai Holdings, a medical services firm in Broward County, Florida, claims that JPMorgan abruptly closed its business accounts with minimal notice, spreading misinformation that damaged its business relationships.

“Similar cases have been previously dismissed. We are prepared to defend ourselves in this latest complaint,” a JPMorgan spokesperson told The U.S. Sun.

The New York Times reported on other sudden account closures based on more than 200 complaints that former JPMorgan account holders sent the newspaper.

The Sinai lawsuit also alleges unethical practices at the bank that hinder its business operations.

JPMorgan placed Sinai, which operates surgery centers and clinics, and its owner, Jacob Gitman, on an internal list of constituents it will not work with, according to the complaint filed in US District Court in southern Florida.

The medical company claims that JPMorgan told its customers that Sinai was under investigation by the Office of Foreign Assets Control (OFAC).

The OFAC is a financial intelligence agency of the US Treasury Department.

It enforces economic agency, preventing people or groups from evading US Sanctions.

“OFAC sanctions are for human traffickers, or terrorists, or people who are proliferating weapons of mass destruction,” Joshua Kon, the attorney for Sinai and Gitman, said in an interview.

“Chase knows that there are no OFAC investigations or no sanctions, yet they continue to put that in written correspondence to customers to explain why a transaction is canceled.”

Because of JPMorgan’s alleged refusal to comply with Sinai, the company has struggled to meet its funding obligations and access credit from other lenders, according to the complaint.

Gitman and Sinai are requesting injunctive relief from the court as they had several of their bank accounts closed at other large US banks due to “Chase’s industry-wide defamation,” wrote Kon in the complaint.

Sinai’s company value has plummeted as a result of its troubles with JPMorgan, despite it growing to over $600 million before the lawsuit, according to the complaint.

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

Other Banking News Today

Chase Is Now Being Sued For Closing Accounts Without Warning

Massive bank branches will now close in Florida according to the latest data from the Office of the Comptroller of the Currency (OCC).

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

Florida had the fourth most closures of any state as banks continue to push customers to digital banking, according to CNBC.

“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,” said Bank of America in a statement.

“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.”

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.

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

Below is a list of massive bank branches closing in Florida very soon:

Bank of America. 8819 Hypoluxo Rd, Lake Worth (added to the list this week).
Valley NB. 19495 Biscayne Blvd, Suite 500, Aventura (added to the list this week).
Wells Fargo. 1600 Ridgewood Ave, Holly Hill
Wells Fargo. 5849 Okeechobee Blvd, West Palm Beach
Wells Fargo. 5355 Town Center Rd, Boca Raton
Bank United. 1121 North Orange Ave, Winter Park
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
Wells Fargo. 199 North Ocean Blvd, Pompano (closed this week)

Also Read: Wells Fargo is Now Freezing Bank Accounts in New Scandal

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