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This is what happened to a close friend of mine today.
My friend has checking and saving accounts with Washington Mutual (now Chase), he also has checking accounts for his business (2 checking accounts). He also has a mortgage, originated with Washington mutual. I want to asure, that he is doing really well, his business is going smooth.
2 weeks ago he deposited $50K to his personal checking account from his line of credit with intend to make a loan to his business-he needs to buy new inventory. Chase hold the funds as unavailable until March 20th. My buddy checked his balance on 03/20/2009-funds were finaly cleared. His line of credit posted check 12 days ago, so basicly my friend was paying interest on money he did not use. Fine, he was cool with that.
Today, on March 21, 2009 he was heading to Las Vegas and he stopped by at local chase (ex-wa.mu) branch to take some cash. Teller said, that she can not make this transaction, because his account is frozen. Why? Because of this 50K deposit. My buddy was shocked. He called branch manager, and manager said she can not do anything, cause back office risk departament is closed on weekends.
My buddy freaked out. He called 1-800-788-7000, automated system confirmed that balance is available. He connected to live person, and rep said that his account is frozen. But not only that, with large deposit. ALL HIS ACCOUNTS ARE FROZEN, EVEN BUSINESS ACCOUNTS. And nobody can do anything until monday. So, guy has more than 100K in his accounts, and... had to borrow money from me-that's when he told me his story.
Oh, funny thing. While arguing with bank rep on the phone, my friend mentioned, that he will be unable to pay his mortgage. Rep said, "we are sorry for that, sir" . Then my buddy reminded, that his mortgage is with Chase. Bank rep said, "oh, right.... well, we will make that you could pay your mortgage to us". LOL. How about other mortgages and bills?
I have my accounts with chase too (opened with wamu), and honestly, I will close all my accounts on monday. Of course, they will ask, why I am doing that. I will not be shy to tell them truth.
Chase are a bunch of incompetent idiots. I won't go into the detail of all the negative experiences I have had with them. Suffice to say that I would encourage anyone to take their business elsewhere.
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,829,971 times
Reputation: 6438
Chase isn't holding his money because they enjoy toying with your friend. Chase is holding the money for a bank defined reason. When you open an account with a bank, they normally give you literature and a detailed explanation on how the account works. They explain things like how long check deposits take to post, and many other things.
Take my bank for instance. If I don't maintain $50 in my checking, they charge me a "Fee" for "monthly maintenance." IF I keep $50 in there, there is no fee. If I didn't pay attention when I opened the account, or failed to read the documentation, if I had been charged that fee, I would've been saying, "They charged me a fee and I don't know why."
Your friend, when he asks the bank why it was frozen, will be given a reason. A reason which is totally logical to the bank. I am willing to bet you money that it's in the bank's best interest....and not your friend's best interest.
I once read that any transaction over $10K is held for authorization, investigation, whatever you want to call it. Has said friend deposited this kind of money before?
I once read that any transaction over $10K is held for authorization, investigation, whatever you want to call it. Has said friend deposited this kind of money before?
Not for two weeks! I have done plenty of transactions over $10k and never had a problem. But then, I don't bank with Chase and never will.
1. Chase isn't holding his money because they enjoy toying with your friend. Chase is holding the money for a bank defined reason. When you open an account with a bank, they normally give you literature and a detailed explanation on how the account works. They explain things like how long check deposits take to post, and many other things.
2. Your friend, when he asks the bank why it was frozen, will be given a reason. A reason which is totally logical to the bank. I am willing to bet you money that it's in the bank's best interest....and not your friend's best interest.
1. You do not understand what happened, do you?
Bank held his 50K for 2 weeks, until check is cleared with his other financial institution. That I can understand. After check was cleared, they froze his accounts. All of them. Business accounts, personal accounts, saving accounts. So-he can not pay his bills, business invoices, payrol, etc.
And you think it is normal, right?
2. They gave him reason-because this large 50 K deposit. And I see only one reason-they want to keep his money and don't want to pay interest on it.
Anyway, he is done with them. As soon as account will be released he is moving his banking somewhere else.
I once read that any transaction over $10K is held for authorization, investigation, whatever you want to call it. Has said friend deposited this kind of money before?
They held his money for two weeks-enaough time to do any investigation. After funds were cleared, they frozed all his accounts-personal and business (corporation).
I agree with 70Ford. Most likely your friend is simply experiencing delays that are required by the government (Homeland Security), or delays that have been established by the bank polcy. If your friend has a problem he needs to ASK someone so that the particulars can be explained in detail.
Not understanding what is going on, and not bothering to ask is how rumors get started.
20yrsinBranson
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