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Cautionary tale on using Chase bank for indie business

jxnl.co

11–20 of 282 posts

Re: Cautionary tale on using Chase bank for indie business

#11

The most important lesson learned here is not to ever deal with retail banking at the branch. Not only do they not care they aren’t given the authority or autonomy to help you. By trying to do this at multiple branches across the country OP likely made the problem worse as those actions raise suspicions even more. With that much money after the first day of inaction by support he should have CC’d every department fro…

This may vary a lot by bank.

At the small regional bank I used to work for accounts were assigned a home branch, typically where the account was first opened, and that branch had enhanced responsibilities in terms of servicing and maintaining the relationship.

Chase is big enough that their KYC fallout queues probably have an entire team working them, and it wouldn't matter who else you CC on the email.

("Hey Joe, come quick! Just got an email from someone claiming they need their money we just froze...")

Re: Cautionary tale on using Chase bank for indie business

#13
post #9

About 10 years ago a startup I co-founded had about $3M in a Chase account. We received a notification that they were closing our account within 30 days. We weren't able to get any information but I assume this was a KYC false positive. The only thing I can think of is that we had some investors from the Middle East. We had no problem withdrawing our funds but since then, I've opened another business account and a pe…

holy shit. They never gave me an answer but the last thing the KYC team did (outside of executive branch) was just confirm a 25k invoice =_=

Re: Cautionary tale on using Chase bank for indie business

#14
When I first moved to the SF Bay it tickled me to find there was no retail Chase Bank presence at all.

Then the financial collapse and bailouts happened, Chase scooped up WaMu, and now Chase is everywhere here. :sadpanda:

I won't even take money from their ATMs if I can avoid it, my bank covers ATM fees, but f*ck giving that company another dime.

Re: Cautionary tale on using Chase bank for indie business

#16

The most important lesson learned here is not to ever deal with retail banking at the branch. Not only do they not care they aren’t given the authority or autonomy to help you. By trying to do this at multiple branches across the country OP likely made the problem worse as those actions raise suspicions even more. With that much money after the first day of inaction by support he should have CC’d every department fro…

It's definitely exacerbated by being a big bank though. If I have a problem with my local bank, I can literally walk into the branch and probably just talk to a VP about it straight-away if needed.

Re: Cautionary tale on using Chase bank for indie business

#18
post #9

About 10 years ago a startup I co-founded had about $3M in a Chase account. We received a notification that they were closing our account within 30 days. We weren't able to get any information but I assume this was a KYC false positive. The only thing I can think of is that we had some investors from the Middle East. We had no problem withdrawing our funds but since then, I've opened another business account and a pe…

Just for posterity, we received this on 6/28/2013. Looks like they actually gave us 60 days.

> Dear [redacted] Inc.

> A review of our records indicates that we are unable to retain your above-referenced account(s) (the "Accounts") at JPMorgan Chase Bank, N.A. (the "Bank").

> The terms and conditions governing the Accounts ("Account Rules") provide that the Bank may close your Accounts at any time. Although the Account Rules do not require the Bank to provide you with advance notice of the termination of the Accounts, as a courtesy, please be advised that the Accounts will be terminated and closed after the close of business on 08/26/2013. Any items presented for payment on the Accounts and not paid prior to termination will be returned unpaid. If the Accounts were covered by Overdraft Protection, as that term is defined in the Account Rules, such Overdraft Protection will terminate with respect to the Accounts on the Termination Date.

> Please do not deposit checks to the Accounts within five (5) business days of the Termination Date or any earlier date that you close the Accounts. Please arrange to cause any Automated Clearing House or ACH deposits or transfers to the Accounts to be terminated prior to closure. Provided that no checks have been deposited to your Accounts within the five (5) business day period before the Accounts are closed and no deposits of any kind have been made to your Accounts within a two (2) business day period before such closure, upon closure the Bank will, at your risk, mail to you at the address set forth above a check for the balance of your Accounts, less any service charges assessed to the Accounts. If deposits are made to the Accounts prior to closure inconsistent with the foregoing, the Bank will mail your check as soon as reasonably possible following closure of the Accounts. If you wish to make other arrangements for receipt of any funds remaining in the Accounts or if you have questions, please contact 1-877-691-8086 OPTION-NUMBER-1.

> Notwithstanding the Bank's intent to allow the Accounts to remain open until as set forth above, the Bank reserves the right to close the Accounts earlier, at any time, for any reason, without notice.

> Sincerely,

> Chase Operating Loss Prevention

Re: Cautionary tale on using Chase bank for indie business

#20

The most important lesson learned here is not to ever deal with retail banking at the branch. Not only do they not care they aren’t given the authority or autonomy to help you. By trying to do this at multiple branches across the country OP likely made the problem worse as those actions raise suspicions even more. With that much money after the first day of inaction by support he should have CC’d every department fro…

It's definitely exacerbated by being a big bank though. If I have a problem with my local bank, I can literally walk into the branch and probably just talk to a VP about it straight-away if needed.

Yes, though banks use "VP" in a title the same way "Senior" is used in software.
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