Chase - Proof of Entitlement

adjfraser

I recently moved house into a bit of a "fixer upper". On the basis that some big purchases were required, I thought it would be a good idea to get the new Chase Account on the basis that I would receive the 1% cashback on a decent level of spending.

The way I planned on doing this was by transferring bulk sums from my current account (with First Direct) to the Chase Account and using the Chase Account for the necessary spending. This worked well for a couple of weeks, however, I then received a letter from Chase saying that they required me to provide 'Proof of Entitlement' to the money. I provided them with a screenshot of the transaction from my First Direct account showing the transfer from "me to me" (both accounts are in my name). However, this was not sufficient and they required copies of my payslips (which I'm not able to provide, because I am self employed). They have been "looking in to this" for the past two weeks now and my account remains frozen and my money held hostage.

I'm a solicitor by trade so i can only imagine that they have submitted a Suspicious Activity Report against my account (and are unable to tell me so, to avoid "tipping off"). However, this seems ludicrous in the circumstances. I don't know what is suspicious about me sending money to myself! If they haven't submitted a SAR then it is perhaps a simple case of terrible customer service.

I wonder if anyone else has had a similar experience?

I'm left with the conclusion that the activity they don't like is using the Chase Account only for spending and not to hold any money. So, if this is your intention, I would steer clear.

WillPS

Being self employed does not mean there is no proof where the funds came from. Why didn't you provide them with paperwork showing where the funds originated from?

Showing that it's a transfer from a personal bank account proves nothing they didn't already know.

Zanderman

adjfraser said:

I'm left with the conclusion that the activity they don't like is using the Chase Account only for spending and not to hold any money. So, if this is your intention, I would steer clear.

Not a conclusion that I'd reach. Many banks would behave the same way if they're worried about money laundering etc. Chase aren't behaving particularly unusually.

The whole point of any current account is to spend money, especially the chase one where they incentivise you to do just that, so I doubt they'd penalise people for doing exactly that.

400ixl

Do you not have invoices and remittences for work you have done for your clients? That would be the sort of thing that they will be looking for. Invoices requesting payments  with bank statements showing the corresponding payments into your account.

When you say you were transferring bulk sums, how frequently was this happening and what sort of values? 

adjfraser

Thanks for the comments so far!

Despite me explaining the issue over the phone and via their App, Chase have not asked for any specific documentation other than payslips. Even if they did ask for invoices, I would not be able to provide these on the basis of client confidentiality. Also, invoices are issued by my company from whom I receive a salary and dividends (paid into First Direct account). Therefore, presumably it would be evidence of these payments that they require (which are visible on the First Direct screenshot that I provided).

It strikes me that the Chase Account systems are perhaps set up to be used as a "primary" account and that their computer says "no" to any other type of use.

Even if they do have concerns about the activity, they should surely be trying to resolve it with me...rather than saying how busy they are and "continuing to investigate" for two weeks.

As I say, they are either ignoring me and therefore providing a poor service (in which case i would encourage people to steer clear) or they have flagged my usage as suspicious (in which case - if other people are looking to use their account in the same way as me - i would encourage people to steer clear)

penners324

If you're getting paid by your business then you should have payslips and also the agreement for the value of dividends being paid?

400ixl

Chase will be following the processes imposed by them by the overseeing body which includes what they have to look for, what response they have to take and what they can tell the account holder.

It could well be the way you are using the account, random amounts transferred on random schedules are big flags that something like money laundering could be happening. More typical use for Chase customer chasing the savings rate would be a number of larger transfers to bring money in and then perhaps regular smaller payments of money as savings transfers. For current account customers, then it would be a regular amount such as salary and then money going out through direct debits and payments to typical types of companies such as groceries etc.

You sound like you are putting in irregular amounts (potentially large) at irregular intervals and then in quick succession paying those moneys out only via the debit card. That is not normal use for either a saver or a current account customer. So not that surprising they have flagged the account as suspicious.

Marchitiello

“Sending money to yourself” from and account to another is a way of laundering money. As a solicitor you may  also know that proof of entitlement are very common when putting down large deposits on a house.

as other have said, there should be a way to prove that the money was yours in the first place. 

adjfraser

400ixl - Thanks for the insight, I agree that they have probably flagged this as suspicious. This is the reason for posting the comment, so that others who wish to use the account in this way are aware.

penners324 & Marchitiello - I don't disagree that there are likely other ways of proving this. However, they won't tell me what they need me to provide (other than payslips, which i don't have). It's this poor service that is the other reason for posting this comment.

General_Grant

adjfraser said:

Thanks for the comments so far!

Despite me explaining the issue over the phone and via their App, Chase have not asked for any specific documentation other than payslips. Even if they did ask for invoices, I would not be able to provide these on the basis of client confidentiality. Also, invoices are issued by my company from whom I receive a salary and dividends (paid into First Direct account). Therefore, presumably it would be evidence of these payments that they require (which are visible on the First Direct screenshot that I provided).

It strikes me that the Chase Account systems are perhaps set up to be used as a "primary" account and that their computer says "no" to any other type of use.

Even if they do have concerns about the activity, they should surely be trying to resolve it with me...rather than saying how busy they are and "continuing to investigate" for two weeks.

As I say, they are either ignoring me and therefore providing a poor service (in which case i would encourage people to steer clear) or they have flagged my usage as suspicious (in which case - if other people are looking to use their account in the same way as me - i would encourage people to steer clear)

So, as a solicitor, you should get your own company to act lawfully and issue payslips.  (You did know that was a legal requirement, didn't you?)

born_again

adjfraser said:

Thanks for the comments so far!

Despite me explaining the issue over the phone and via their App, Chase have not asked for any specific documentation other than payslips. Even if they did ask for invoices, I would not be able to provide these on the basis of client confidentiality. Also, invoices are issued by my company from whom I receive a salary and dividends (paid into First Direct account). Therefore, presumably it would be evidence of these payments that they require (which are visible on the First Direct screenshot that I provided).

It strikes me that the Chase Account systems are perhaps set up to be used as a "primary" account and that their computer says "no" to any other type of use.

Even if they do have concerns about the activity, they should surely be trying to resolve it with me...rather than saying how busy they are and "continuing to investigate" for two weeks.

As I say, they are either ignoring me and therefore providing a poor service (in which case i would encourage people to steer clear) or they have flagged my usage as suspicious (in which case - if other people are looking to use their account in the same way as me - i would encourage people to steer clear)

It will be source of funds. Which will not be shown on FD account. They will & should have told you that they want proof of where they came from. So proof of dividend's payments from company & proof of wages paid.

Many people get caught out by source of funds, thinking it is the account they came from & not the real source that they entered their banking system.