Not upheld: account closure and fund release delay complaint against J.P. Morgan Europe Limited trading as Chase

Decision detail

Summary

Mr B complained that Chase unfairly closed his account and failed to release his funds following a KYC review commenced in September 2024. Chase concluded Mr B had not met the review requirements and closed the account. Mr B's funds remained unreleased, and he expressed a preference for cheque payment which Chase declined. The ombudsman found Chase's review was conducted fairly in accordance with regulatory obligations, the account closure was justified under the terms, and Chase acted reasonably in requesting alternative bank details rather than issuing a cheque. The complaint was not upheld.

The Ombudsman's reasoning

Chase's KYC review was conducted in accordance with its legal and regulatory obligations. The bank provided Mr B with multiple opportunities to respond to information requests over several months. Mr B's reluctance to fully engage with the process and failure to provide requested information justified the account closure under the account terms. Chase's refusal to release funds via cheque was reasonable given the digital nature of the bank, and Mr B's failure to provide alternative bank details prevented fund release. The communication delay did not cause unreasonable delay in returning funds as Mr B was already aware of what information was required.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website