MADISON, Wis. (11/16/11)--An article in the November issue of the AARP Bulletin tells the story of a Monroe, Wash. family that switched its accounts to a credit union after megabank Chase froze their accounts.
One Saturday in August, on their daughter, Lindsay's 10th birthday, Meagan and Mike Farrell received a letter from Chase informing them that their accounts would be closed in 10 days. With an excellent credit history and no record of bouncing checks, the Farrells thought the letter was part of a mix up.
But after talking with at least eight bank employees, the family learned that no one could provide an explanation.
When the Farrells visited a local Chase branch on the following Monday, their checking and savings accounts had been frozen, causing several checks to bounce.
Chase eventually acknowledged a communication error on its part and reopened the Farrells' accounts, but only after the media and federal regulators became involved.
By that time, the Farrells had moved their accounts to a local credit union.
Meagan Farrell said that if such an incident could happen at Chase, it could also happen at another bank.