Chase attempts to collect debt despite the law claiming it can’t

Different states have different laws regarding what happens to the remaining debt after a short-sale or foreclosure.  California (where this case hails from) has anti-deficiency statues that disallow a bank from trying to collect on this remaining debt.

Despite the law, Chase seems to have tried to do this anyway:

However, despite the California anti-deficiency statutes, which bar collection of a deficiency on purchase money mortgages after foreclosure, JP Morgan Chase attempted to collect nearly a $250,000 deficiency on the HELOC, and reported it negatively on the plaintiff’s consumer credit profile.

Chase lost the preliminary injunction hearing and the injunction was granted.  Chase is barred from providing derogatory information to the credit agencies for this statutorily collectible debt, pending the outcome of the case.  This case appears likely to provide an excellent legal precedent for others battling this same behavior.

Chase accused of failing to do basic due diligence when opening new account

My bank requires copious and thorough documentation upon the opening of a business bank account and I am certain they check my state’s public entity database to confirm basic information about a legal entity before they will open an account.

Chase on the other hand, appears to skip some crucial steps in the confirmation process as is claimed in this lawsuit.

“Chase Bank assisted Salzman and Weiss in opening these bank accounts at Chase Bank, account numbers *4054 and *5990, and, upon information and belief, without conducting any due diligence whatsoever – but, regardless, manifestly inadequate due diligence – therefore egregiously violating and recklessly disregarding the ‘know your customer rule.’ A simple review of the Partnership Agreement for Freed & Weiss LLC, and/or the filings that were made by Freed & Weiss LLC with the Illinois Secretary of State, that were publicly available online at that time, would have shown the falsity of the representations made by Saltzman and Weiss.”

Chase allows customer to access wrong safe-deposit box

How safe does this story make you feel about the contents of your Chase safe-deposit box?

A cache of counterfeit currency was discovered at a Chase bank branch when an elderly customer opened the wrong safety deposit box, the Daily News has learned.

The bizarre incident began innocently enough last Thursday when the longtime customer requested access to his box at the Huntington, L.I., bank branch, according to papers filed in Brooklyn Federal Court.

Accompanied by an assistant manager, the customer was escorted to the bank vault, where he attempted to open Box No. 142 with his key, but it didn’t fit, say court papers.

The assistant manager noticed the key was marked for Box No. 304 and opened that box instead. It contained two large packages of what appeared to be funny money.

“(The customer) stated he was confused . . . and claimed he did not know how that much money got into his safety deposit box,” according to court papers.

The puzzled customer — described as an “elderly gentleman” — returned the next day with two keys to two boxes — No. 142 and No. 304 — and was accompanied this time by a pair of U.S. Secret Service agents whom JPMorgan Chase had contacted.

First the customer used the key marked No. 142 and found legal documents bearing his name and several thousand dollars in genuine currency. Box No. 304 contained $112,000 in fake Federal Reserve Notes.

The branch manager solved the mystery when he noticed the customer’s key for the box containing the stash of counterfeit money was enclosed in an envelope marked “Bank of New York.”

The Chase branch had previously been a Bank of New York, and the elderly customer apparently had closed out his safety deposit box No. 304 without returning the key.

JPMorgan Chase apparently did not change the boxes’ locks when it took over the branch and gave box No. 304 to a new customer — who has some explaining to do to the Secret Service .

The current safety deposit box holder, a Huntington resident, has not yet been charged.

A piece of tape wrapped around the counterfeit notes was marked with the current box holder’s initials, authorities said.