Not upheld: account blocking and fund withholding; regulatory compliance complaint against J.P Morgan Europe Limited trading as Chase

Decision detail

Summary

Miss O complained that Chase unfairly blocked her account and withheld £2,000 in funds she claimed were repayment of a debt from a business partner. Chase blocked the account after the funds were reported as fraudulent by the sending party and requested evidence of entitlement. Miss O provided chat messages and business documentation, but Chase was not persuaded of her legitimate entitlement. The ombudsman found Chase acted fairly within its regulatory obligations and was not persuaded by Miss O's evidence, particularly as it did not explain why the funds came from a third party rather than directly from her business partner. The complaint was not upheld, though Chase had already offered £150 compensation for separate credit card handling issues and transferred the disputed funds to a nominated account.

The Ombudsman's reasoning

Chase is strictly regulated and required to conduct ongoing monitoring of business relationships, including establishing the purpose and origin of funds. Blocking accounts following fraud reports is common industry practice. The ombudsman found the evidence Miss O provided did not adequately explain why funds came from D rather than directly from M, and the business documentation was incomplete and inconsistent with Miss O's account activity. The ombudsman was not persuaded that Miss O had demonstrated legitimate entitlement to the funds, despite sympathising with the difficulties she faced with her business partner.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website