JPMorgan Chase Bank Account Freeze Pushes Miami Business Owner to Bankruptcy

A Miami-based entrepreneur was pushed to the brink of bankruptcy due to a nine-month-long freeze on his $65,000 by Chase Bank.

What Happened: Sean May, a customer of Chase Bank, was unable to access his funds due to a suspected fraud. The funds were from a $65,000 check issued by the US government.

According to a report, despite presenting a letter from the Internal Revenue Service (IRS) confirming the legitimacy of the check, JPMorgan Chase & Co. JPM, operating as Chase Bank, did not lift the freeze on his account.

“They have cashed the check. They do have the money. It’s just not accessible to me, and my account has been closed,” said May. He also highlighted that this situation played a significant role in his software development company’s bankruptcy.

Also Read: TD Bank Confirms Data Breach: Account Numbers and Sensitive Customer Info Exposed

After NBC-affiliate WFLA News initiated inquiries, Chase Bank agreed to release May’s funds. “Upon review of this case, we reached out to our customer to apologize for the delay and to let them know we are releasing their funds,” the bank stated.

May has been informed by the bank that he should expect the check this week.

Why It Matters: This incident underscores the potential risks that businesses face when banking institutions impose sudden freezes on accounts.

In this case, the prolonged freeze led to significant financial distress for the business owner, ultimately pushing his company into bankruptcy.

The incident also raises questions about the bank’s fraud detection and customer service processes, and whether they adequately protect the interests of their customers.

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