It has been revealed that the important banking giant JPMorgan Chase has been accused of shutting down an account of a loyal customer. Check out the latest reports about this below.
JPMorgan scandal in the news
A man who claims to have been a JPMorgan Chase customer for 18 years has gained popularity on social media after accusing the bank of closing his account without any prior notice or explanation.
The man shared on Reddit that his Chase credit cards stopped working abruptly and he was also denied access to his online banking account.
He further claimed that representatives at the bank assured him that he would receive a letter with more information about the reason behind the account closure, but no such letter was ever sent.
Consequently, he was left in the dark about the situation and was informed that he is banned from the bank for life.
“Confirmed, Chase closed everything down. No warning, no explanation. I had to take all my funds out yesterday and they recommended me to grab all my things in my safety deposit box. I’m also banned from conducting business with Chase.
Nothing in my credit or banking history has been different than the normal transactions I’ve been doing for years. Has this happened to anyone before? I feel like this is a ‘it’s you, not me, please delete my contact info from your phone. Don’t reach out.’”
It appears that Chase has not yet replied to a post made by a user on the r/Chase subreddit. Banks have the right to close accounts if they believe that there is suspicious activity taking place.
If a financial institution suspects potential illegal activity, they must report it to the government by submitting a Suspicious Activity Report (SAR).
However, only 4% of SARs submitted by banks actually result in follow-up action by law enforcement, and only a small fraction of these cases lead to arrests and convictions.
In 2014, the number of SARs submitted by banks was approximately 830,000.
The number of SARs reported has significantly increased in recent years, reaching about 1.4 million in 2021. Additionally, JPMorgan Chase has been accused of engaging in systemic discrimination against its customers.
In May, Republican attorneys general from 19 states accused JPMorgan of persistently discriminating against its clients and closing their bank accounts without any warning, based on their religious and political beliefs.