Terrible experience with Chase bank

Clifford61

 I sold some items and was paid direct into my chase current account on the 20th June and the money was drawn out over the next few days. Had a letter arrive on 6th July dated 1st June when the payment was on the 20th June saying that the bank that sent the money wanted proof of entitlement ie a personal invoice proof which I did or they where sending the money back, chase said that my account was now restricted. By restriction that means block it up solid so cannot access any part of your savings or personal account until they have finished. Got intouch with the person who bought the items and he got intouch with his banks fraud department and they said there wasn’t a problem and his bank hadn’t asked for any entitlement or anything else. Every time you message support services or ring you end up speaking with someone else and say they can’t do anything and it’s being looked into; and have a nice day “USLESS”, it has now been a week with blocked solid accounts that don’t even show in the app anymore and cannot access any of MY money in MY savings account. I have to leave it for another week before I can get the FOS involved as is says 14 days for bank transfer complaints. As soon as it’s sorted I will be closing the accounts, I prefer less interest than having an account with a lot of savings in it and not being able to access or even see it in the app.

blenz101

This just comes across like a rant, not sure what you want anybody to do or say about this. 

We can only speculate with what you are doing with the account but your activity doesn’t sound at all normal for a typical personal account holder.   Obviously you don’t give an idea of the sums involved or why you are having proceeds of sales paid in directly then withdrawing as cash. 

That said, this seems to have been caused by another bank questioning the payment you received so may well be outside of the control of Chase. 

I would count yourself lucky they have frozen and are at least investigating, most legacy UK banks would have just closed your account at the first sign of trouble.

EthicsGradient

blenz101 said:

This just comes across like a rant, not sure what you want anybody to do or say about this. 

We can only speculate with what you are doing with the account but your activity doesn’t sound at all normal for a typical personal account holder.   Obviously you don’t give an idea of the sums involved or why you are having proceeds of sales paid in directly then withdrawing as cash. 

That said, this seems to have been caused by another bank questioning the payment you received so may well be outside of the control of Chase. 

I would count yourself lucky they have frozen and are at least investigating, most legacy UK banks would have just closed your account at the first sign of trouble.

This is what current accounts are for: to have money from other people paid in, and then for the account owner to draw it out. Why there is an apparent discrepancy between what the two banks say, we don't know (it is also possible that the buyer of the goods is not telling the truth about what their bank says - is the buyer trustworthy, Clifford61?) But I can't see why this is "lucky". 

Clifford61

Just letting people know my position and what can happen, rest is up to who ever reads this to make there own mind up. I’ve sold a few thing in my life but never been asked for proof of entitlement.

k_man

If large* volumes of money move in and out of an account quickly, which isn't usual, especially on a new account (most Chase are), then banks are obliged to go through AML (anti money laundering) checks.

The seller may do this all the time, or not have moved money in and out quickly, so nothing is triggered/shown at their end.

*Not a defined term in this context, apart from enough to trigger AML.

dunstonh

 I sold some items and was paid direct into my chase current account on the 20th June and the money was drawn out over the next few days. 

This could suggest you are using it for business purposes.  This would trigger a review.  It could also be that they are concerned its money laundering.   Money quickly in and out can trigger reviews and restrict the account.  Especially on newly opened accounts.

In general, the banks have algorithms in place to highlight accounts that may be at higher risk of AML or breaches of T&C. 

The request for an invoice could be to check for commercial use or it could be to check for AML purposes.

Newer banks operating in the UK usually have to work to a higher compliance standard than traditional banks (much in the same way that banks that have been found to be lax are also required to work to higher standards for a period until they prove themselves.)

As soon as it’s sorted I will be closing the accounts,

I don't think they would be unhappy about that.

Every time you message support services or ring you end up speaking with someone else and say they can’t do anything and it’s being looked into; and have a nice day “USLESS”, it has now been a week with blocked solid accounts that don’t even show in the app anymore and cannot access any of MY money in MY savings account.

They are not allowed to tell you why and they cannot do anything as it is being handled by a specialist team that deals with fraud and AML.  You just have to wait.

I have to leave it for another week before I can get the FOS involved as is says 14 days for bank transfer complaints.

It is worth remembering that the minute that Chase tell the FOS that you have been flagged under anti-money laundering guidelines the FOS will take a step back.  The FOS cannot and will not tell a bank to pay you the money whilst AML checks are ongoing.

Eyeful

Clifford61 said:

 I sold some items and was paid direct into my chase current account on the 20th June and the money was drawn out over the next few days. Had a letter arrive on 6th July dated 1st June when the payment was on the 20th June 

You are saying the letter was dated (19 days) before the money was paid into your Chase current account but received (16 days) after the money hit your account. 
If the letter was dated 1 June but arrived 6 July, this suggests either
(a) A very slow postal service.
(b) Whoever wrote the letter must have held on to it for a very long time before posting it to you.
(c) You made a mistake.on the dates.

Unless there is a mistake on the dates, looks strange.to me.

Clifford61

@blenz101 cannot withdraw cash with chase account

@ethics gradient had the buyer send a message and forwarded it to chase

@k_man if it is an AML why not just say so

@dunstonh ok, the thing that really got to me was blanking my accounts in the app like they don’t exist, at first I thought I had been hacked and emptied my savings account (panic) why not hold the equivalent amount they have a problem with so you can still draw on your saving account.

@Eyeful letter dated 19 days before the money went into my account saying I had to respond within 14 days and landed with me 16 days after, I wouldn’t of known there was a problem before 6 July if I hadn’t questioned why interest hadn’t been added on 1 July Then my accounts disappeared.

thanks to everyone

masonic

Clifford61 said:

@k_man if it is an AML why not just say so

Because it would be unlawful to do so.

Clifford61 said:

@dunstonh ok, the thing that really got to me was blanking my accounts in the app like they don’t exist, at first I thought I had been hacked and emptied my savings account (panic) why not hold the equivalent amount they have a problem with so you can still draw on your saving account.

Because if they suspect your account has been involved in money laundering, that would be unlawful too.

See https://www.saunders.co.uk/news/has-your-bank-account-been-frozen-and-no-one-will-tell-you-why/ (I'm not suggesting in any way that this legal firm should be used, it just has a clear explanation of the legal position)

Daliah

Clifford61 said:

@blenz101 cannot withdraw cash with chase account

You definitely can. Up to your daily limits, or monthly limits when abroad.

ranciduk

So glad I didn’t waste my time and energy with this company 

1.5% interest is nowhere near enough to make it worth putting up with all the faff