Not upheld: account closure and fund retention based on suspected fraud complaint against J. P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr A complained that Chase closed his account shortly after opening it in January 2025 and retained £3,000 in funds. Chase cited suspected fraud and breach of terms and conditions as the reason for closure. Mr A claimed the funds were a loan from a long-time friend but could not provide supporting evidence. The ombudsman found Chase was acting fairly and within its legal and regulatory obligations when it closed the account and withheld the funds, as Mr A had not demonstrated his entitlement to them. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that Chase is subject to legal and regulatory obligations requiring scrutiny of transactions and the ability to review accounts. Chase's terms and conditions permitted immediate closure without notice where fraud was suspected. The ombudsman was not satisfied that Mr A had demonstrated his entitlement to the funds, particularly given his inability to provide supporting evidence of the claimed loan from his friend. The ombudsman concluded Chase was acting in line with its legal, regulatory obligations and relevant terms when it blocked and closed the account.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website