Had Washington Mutual and now got Chase? Watch out for your cash!

If you had WaMu checking account and since had your account converted to one of the Chase checking accounts, you may want to know the following rules that Chase will apply to any and all of your accounts. Some of these rules are strange, others are simply ridiculous:

 -    Unless you sign a paper releasing the bank of any liability in case you are robbed or assaulted when you withdraw large amount of money (cash) you can’t get your money. The issue is twofold:

     a) You can’t get YOUR money, unless you release all liability the bank may have. While this doesn’t sound like a big deal, read the point “B” and see why it actually matters.

     b) Imagine a scenario where a bank employee learns about you taking a large sum of money from your account and then tipping off local thugs…If during the investigation you learn that someone at the bank was involved – you can’t sue the bank for poor security, lack of employee background checks, or any other reason.

-    Unless you have a joint account – you must provide POD (Pay On Death) person to whom the account balance should be transferred. It is unclear if the bank retains the right to keep the money if you have not designated any such person.

 -    If anyone files a claim against you with the bank – your account may be frozen without any sort of proof of dispute. Now imagine a prankster calling your bank saying you owe him money. The burden of lack of dispute is on you.

 -    If you are involved in any legal dispute with the bank – they can use money in YOUR account to pay for THEIR legal costs while fighting you! Here is the  actual line from Page 30, section on Legal Proceedings:”All expenses incurred by us as a result of a proceeding affecting your account, may be charged against your account….These fees may include but are not limited to, court costs and attorney fees”.  So sewing them to get your money back is a really bad idea, they will use your money to fight your claim. This is truly outrageous.

 -    They can stop any payment if they think it doesn’t match your normal behavior payment, even if you are fully aware of the activity with your account.

 -    Chase can take money out of your account at any time and without notice to pay any dept, direct or indirect, that you may have with them or any of their affiliates. It is the last word that makes it all more dangerous – affiliates. Today all other financial institutions, advertisers, marketing research companies and such are considered to be affiliates of most banks. So if you refuse to pay for a service you’ve never signed up for that was provided by affiliate of Chase – they will just take it out of your account.

 -    If your account has no money in it – it can be closed by Chase at will.

 -    If Chase closes your account and there is less than one dollar left – they keep it. This is basically a theft, which you agree to by opening an account with them.

 -    If Chase considers any of your instructions to be outside of “customary banking practices”  they may not comply (including money withdrawals, etc)

 -    Even if Chase knows that their actions will cause you “damages regardless of the form or action”  -  they are not liable.

 -    If there is any sort of legal claim – Chase considers itself to be authorized to comply with any portion of claim without caring if the claim has jurisdiction over you and your account, or even the authority to start the legal process.

 -    In case Chase has to produce any documents or perform any action to comply with administrative or legal preceding – they will pay for it with your money.  

 -    Chase can elect to have any dispute to go to Arbitration and not court.

 -    In case of arbitration – you can choose one of the two arbitration firms that has established business with Chase and which are paid by Chase on regular basis.