JPMorgan Chase is now facing a lawsuit for closing accounts and failing to rightfully return $1,160,000.
In August, the bank was accused of discriminating customers and closing accounts.
Rui Wang and Hengchen Qu, mother and son, have filed a lawsuit against JPMorgan Chase Bank for alleged unjust enrichment and breach of contract related to certificates of deposit (CDs), reports Think Advisor.
“They purchased three automatically renewable nine-month CDs totaling $1.16 million at a Chase branch in Arcadia, California in 2019.
The complaint says that when the customers arrived back in California after being in China, they visited their Chase branch to discover that the bank had closed their accounts.
The bank said it had mailed checks back to Wang and Qu for reimbursement,” reports Daily Hodl.
Both customers say they never received the checks nor do they know where the money was supposed to be sent out to.
The lawsuit states the following:
“The staff stated that the CD accounts had been closed and three checks, each representing the fund therein, had been mailed to the address provided by plaintiffs, which were not received by, or even known to, plaintiffs.”
CDs are usually known to be the safest types of investments due to their contractual high-yield interest agreements.
After requesting that the checks be reissued, an assistant vice president reportedly asked the two customers to provide the numbers of the checks.
However, the plaintiffs said that it was impossible for them to do.
The lawsuit requests JPMorgan Chase to return the funds, and says that Wang and Qu “have suffered financial losses for their failure to access the funds they needed.”
This is a developing story.
JPMorgan Glitch Freezes Millions of Accounts Overseas
JPMorgan froze millions of accounts overseas due to a massive glitch that halted $81,000,000,000 in bank transfers.
“Engineers are investigating a banking glitch that triggered a total shutdown of billions upon billions of dollars in bank transfers in Japan.
The glitch began on Tuesday, leaving more than one million customers unable to move their money and affecting banking giants including JPMorgan Chase, MUFG and Mitsubishi Trust,” reports DailyHodl.
UPI reports that a whopping $81 billion in transfers were halted leaving customers with frozen accounts for about a day before engineers were able to find a resolution.
According to reports, an interbank communication system called Zengin was at the core of the failure as banks scrambled to process transactions with a backup system.
Japan’s biggest bank, MUFG, said transfers to other banks initiated online and at ATMs and convenience stores were denied as Zengin worked to identify the cause of the issue and recalibrate the system.
“Given the significant impact this incident has had on our customers, we will promptly investigate the cause and develop measures to prevent it from happening again,” said the company.
This is not the first time Chase experiences a massive interruption affecting many people.
In the United States, 16,000 ATMs crashed in September, leaving customers unable to access their money over the weekend.
The outage was due to an internal technology-related issue, a source said on condition of anonymity.
Downdetector, which tracks outages by collating status reports from several sources including users, said there were reports of around 900+ outages at its peak.
However, hundreds were still reporting outages going into the week.
In August, Republican attorneys general from 19 states said the bank was “persistently” discriminating against its own clients and freezing bank accounts without warning.
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