FRAUD DEPARTMENT - OUTSOURCED OVERSEAS
The Chase Fraud Department (CFD), particularly the overseas contractor, is the focus of this review. In my experience, Chase is the best of the large national banks. Generally, I recommend Chase. My experience with the CFD-Overseas was unusually bad and not characteristic of the quality that Chase provides in the U.S. Chase can and should address the issue.
The fraud algorithm tagged a check deposited to a Chase checking account from a Chase checking account as potentially fraudulent.
STRIKE ONE: The CFD texted the maker of the check to confirm its legitimacy. As instructed, the maker of the check texted back and confirmed the check was issued and funds should be released.
Despite the express approval of the check issuer, the CFD-Overseas refused to release the funds.
STRIKE 2: A branch manager contacted the CFD-Overseas and explained that no facts supported the suspicion of fraud, but the CFD-Overseas insisted that it must get further confirmation of the check's legitimacy.
The CFD-Overseas telephoned the check issuer at the phone number on record and confirmed that the check was legitimate. The CFD-Overseas told the check depositor that the funds would be released in 45 minutes.
Despite the CFD-Overseas representation, the funds were not released.
STRIKE 3: The next day, the check depositor called the CFD-Overseas and explained the situation. CFD-Overseas stated that, upon further review, it made the decision NOT TO RELEASE the funds despite (a) its representations to the contrary and (b) confirmation of the check's legitimacy.
In addition to not following its own policies and clearly making misrepresentations, it is important to note a few things about CFD-Overseas. First, the check depositor was on hold with CFD-Overseas for well over 30 minutes on several of the calls. Second, CFD-Overseas refused to transfer the call to the U.S. supervisor. Twice, the CFD-Overseas representative hung-up on the check depositor. Once, the CFD-Overseas representative said the call forwarding did not work and suggested calling back (after being on hold for over half an hour). Third, the CFD-Overseas representatives were generally very rude and clearly tasked with being as obstructionist and difficult as possible.
THE CFD-DOMESTIC SAVES THE DAY. After much effort, the check depositor was able to connect with the CFD in the United States. Within two minutes of the explanation as to what happened, the funds were released. THANK YOU Lani (Loni?) and Ian.
TAKEAWAYS FOR CHASE. First, get rid of the overseas subs, especially those handling fraud claims. The money you save on low-salary overseas workers far outweighs the risk of losing loyal domestic customer. Second, make sure there is a way to elevate these issues quickly from the overseas subs EVEN IF they don't want to let it happen. Third, adjust your fraud algorithm. It clearly tagged a transaction that wasn't even close to an issue. Fourth, make sure there is a way to identify an individual customer service representative either with a personal ID number OR a record of the call with an identifiable number. Fifth, MOST IMPORTANT, make sure all sections are fully aware of bank policies. Retrain those individuals who deviate from the same, and terminate those who break the rules repeatedly.