Chase Accused of Wrongful Account Closure Over Zelle Dispute

Jim Serena of Lower Burrell, Pennsylvania, is suing JPMorgan Chase for mishandling a $12,000 transaction dispute that left his account over $11,000 in debt. The issue started when Serena assisted a friend with expenses using Zelle transactions, but the friend reported them as unauthorized. JPMorgan Chase froze Serena's account and eventually closed it, citing the bank's account agreement.

Serena claimed he had submitted notarized affidavits to prove the transactions were legitimate, but the bank did not credit his account. The closure of his account threatened his Social Security payments, which would have gone into that account. Serena filed a federal lawsuit against JPMorgan Chase in June, seeking around $900,000 in damages.

JPMorgan Chase defended its actions, stating it lawfully returned the $12,000 from Serena's account after the other person reported the Zelle transfers as unauthorized. The bank argued its account agreement allowed the action and that Serena's evidence did not require it to return the money.