This is quite alarming with WAMU just being taken over by Chase. All MMJ patients should boycott these rogue banks like Chase.
I received contacts from friends in the Emerald Triangle this past week which I find
intensely disturbing and most likely highly illegal (clearly they are highly unethical).
And guess who's at play? Our favorite - Banks!
Right now, specifically Washington Mutual/Chase.
Legal and A.G. Compliant MMJ businesses have had their accounts closed, without notice or explanation.
Not only have the businesses had their accounts closed, but the banks bounced
their regular automated payments for Payroll, IRS, PG&E, Franchise Tax Board,
EDD, State Fund, Payroll taxes, rent, mortgages, etc.... even though the funds are
there in the (now frozen) account... but the banks are sitting on their funds until
sometime in June!!!
It appears that PATIENTS and MMJ employees who bank with WAMU/Chase
and wrote/received checks with these MMJ business are getting their accounts closed also.
NO reason, NO notice, NO grace period.
Prior to this strange twist, these businesses have never had problems with the bank...
no returned checks, no problems with deposits or withdrawals. The businesses
have up till now had excellent relationships with their local branches and their
local management and employees. This is higher up the food chain
One business received an un-signed form letter 6 days AFTER the account had already
been closed! I'll be real curious to see if that holds for the employees and patients.
Aside from my handful of friends in that area, I'd be REAL interested in hearing from any other
MMJ businesses (collectives, co-ops, vendors) and/or employees/patients in the area who've had similar problems recently.
I've heard from folks in Mendocino, Lake, Trinity and Del Norte counties that have had the same treatment by WAMU/Chase.
I'm also curious if anyone has experienced anything similar with any other banks in any other part of the country.
I'm not trying to limit this, I'm curious about this issue nationwide, but the first signs are up in the
Emerald Triangle.
Here's an OCR'd copy of the snail mail sent from WAMU/Chase to one of the businesses in question:
Washington
Mutual
04/23/09
Re: WaMu Account Number(s) xxxxxxxxx)~
Dear Customer:
A review of our records indicates that we are unable to retain your above-referenced account(s)
(the "Accounts") at Washington Mutual, a division of JPMorgan Chase Bank, N.A. (the "Bank").
The terms and conditions governing the Accounts ("Account Rules") provide that the Bank may
close vour Accounts at any time. Although the Account Rules do not require the Bank to provide
you with advance notice of the termination of the Accounts, as a courtesy, please be advised that
the Accounts will be terminated and closed after the close of business on 04/22/2009. Any items
presented for payment on the Accounts and not paid prior to termination will be returned unpaid.
If the Accounts were covered by Overdraft Protection, as that term is defined in the Account
Rules, such Overdraft Protection will terminate with respect to the Accounts on the Termination
Date.
Please do not deposit checks to the Accounts within five (5) business days of the Termination
Date or any earlier date that you close the Accounts. Please arrange to cause any Automated
Clearing House or ACH deposits or transfers to the Accounts to be terminated prior to closure.
Provided that no checks have been deposited to your Accounts within the five (5) business day
period before the Accounts are closed and no deposits of any kind have been made to your
Accounts within a two (2) business day period before such closure, upon closure the Bank will,
at your risk, mail to you at the address set forth above a check for the balance of your Accounts,
less any service charges assessed to the Accounts. If deposits are made to the Accounts prior to
closure inconsistent with the foregoing, the Bank will mail your check as soon as reasonably
possible following closure of the Accounts. If you have questions please contact our Enterprise
Customer Care department at 1-800-788-7000.
Notwithstanding the Bank's intent to allow the Accounts to remain open until 04/22/2009 as set
forth above, the Bank reserves the right to close the Accounts earlier, at any time, for any reason,
without notice.
Sincerely,
WaMu, , a division of JPMorgan Chase Bank, N.A.
