Check Washing Victim Unable to Recoup Stolen Funds from Chase Bank

Below find a letter from a Scarsdale105883 reader who was a recent victim of a check washing scheme, where a check she wrote for $60.00 was “washed and rewritten” for $8,063 and cashed by her bank, Chase. Though the transaction was clearly fraudulent, she has been unable to recoup her funds and was told that it might take 3-4 months! Here is her letter to Chase Bank.

To: JP Morgan Chase:

It has been 15 days since money was stolen from my personal Chase Account using a fraudulent check. After multiple attempts at redress with Chase (with whom I have had a banking relationship for many years), I still have no line of sight as to how Chase will help me resolve this situation. I have included below a brief written statement of the situation to date, which does not purport to be a fulsome description of all relevant facts. However, I hope that it serves to communicate my growing frustration with the continued time and effort I have had to invest in getting Chase to take responsibility for a situation in which its lack of security has caused me harm.

On December 18, I mailed a check for $60.00 that was evidently intercepted or stolen, and subsequently "washed" and re-written, with the amount changed from $60.00 to $8,063.00. It was cashed or deposited on December 30 at a Bank of America, and Chase remitted the funds to cover the check, despite the fact that the check was damaged and the fact that it was unendorsed. I received no notification or alert as to the out-of-the-ordinary nature of this transaction (a Chase representative at the local branch and I searched on the website for a such an alert for a personal account it seems that Chase does not provide such an alert service for personal accounts, which is surprising because many Chase competitors do provide such a service).

When I noticed this fraudulent transaction online on January 1, I immediately called the Chase 800 number, filed a police report, and froze my credit reports with all three bureaus. One of the credit bureau representatives told me I needed to file a complete Declaration/Fraud Report and said he would mail it to me, and he advised that I go to my local Chase branch first thing on Monday and have the branch file it, which I did . I asked if the $8,063.00 would be returned to my account, and the Chase rep from the 800# said that typically a bank will immediately refund amounts in situations like this.

I came to your bank Monday morning at 9am. After discussing the situation with you, I completed the Declaration/Fraud Report and you faxed it to Chase's Fraud Department in Texas. You told me that the $8,063.00 would be returned to my account but that the branch does not have "power" to do so and that the fax would take 2 days to be received by Chase's Fraud Department. I was told that the "escalation department" was notified as well as the Fraud Department.

I went again to the branch on Wednesday to ask if the Fraud Department in Texas had received the fax. I was assured that the fax was sent but if I wanted to confirm I would have to call the 800 number. The branch did not attempt to verify receipt itself. I went back to my office and called. I was on hold for 50 minutes. I tried again to call on Thursday and I was on hold for 29 minutes and finally did get a person, who confirmed that no fax was received from my local branch, at which point I asked to speak with a supervisor, which I did after being on hold an additional 10 minutes, and she suggested that I have my branch office call and ask for a supervisor and get a supervisor's direct email and send the Declaration /Fraud report directly to them. I then went back to my local branch again, and after investing more time in explaining the situation I was able to get the local branch to connect directly to the Fraud Department to make this filing via email to a supervisor.

The branch manager then told me it would take 60 to 90 days for the $8,063.00 to be returned to me, despite the fact that the Chase rep had represented to me that the return of funds would be immediate. It was explained to me that because the thief cashed the fraudulent Chase check at Bank Of America, Chase has to wait for BOA to have their investigation. So, the waiting gets passed down to the client, corporate logjam gets passed down the client, the client has to do the follow ups, and the client does have the use of her $8,063.00 until this archaic method of customer service is complete?

I had to proactively keep calling and stopping by the Chase Branch to get updates. I was told that there "isn't really anything they can do but wait to hear back from Chase's Claims Department. Friday, 1/25/22 I picked up a voice mail from Chase's "Escalation Department". I called them back today, Monday 1/31/22 and was basically told that "they can't do anything... it will take time, probably 3 to 4 months to get my money back." I asked them, why are you calling me ...and do they know the definition of "escalation?" The Escalation Process clarifies the boundaries and channels of decision-making throughout an organization in order so solve the problem quickly. (thank you Google!)

Not only has Chase's lack of security processes and procedures put me in a situation where I am missing $8,063.00, but I am being forced to invest hours of my time to facilitate Chase's own internal communications and to assert and argue for a remedy that ought to be simple and straightforward, in accordance with Chase's responsibilities to me as the custodian of my hard-earned money and Chase's verbal commitment made to me the day I reported the theft.

I respectfully request that Chase return to me the $8,063.00. It is the least Chase can do, and while it will not compensate me for the many hours of time I have had to pour into this regrettable situation, it will at least bring some measure of closure.

Nothing in this letter shall operate as a waiver of claims or rights whether or not asserted here; I reserve all rights at law or in equity.

Sincerely,

Claire Civetta
Licensed Real Estate Associate Broker Houlihan Lawrence