JPMorgan Chase and Wells Fargo Get Angry at Customers Over Stimulus Controls – Community News
Stimulus Check

JPMorgan Chase and Wells Fargo Get Angry at Customers Over Stimulus Controls

The IRS has begun handing out a third round of federal stimulus payments, worth up to $1,400 per eligible adult and child. But exactly when Americans get a check may depend in part on a bank’s individual policies, with some customers of JPMorgan Chase and Wells Fargo expressing frustration after the banks said payments for the coronavirus would not be made. available until March 17.

About 90 million payments, totaling $242 billion, were deposited into accounts on Wednesday, the Treasury Department said in a statement. It added that another 150,000 checks worth about $442 million were sent by mail. About 100 million checks should reach U.S. households within the next 10 days, IRS and Treasury officials said earlier this week.

Wells Fargo and Chase said the timing of the payments is beyond their control. Although the IRS began issuing payments over the weekend, the official payment date was set for March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that it is “not holding the money” and that it will deposit the money into accounts as soon as possible.

On Wednesday, JPMorgan Chase said it had deposited all the money it received from the IRS into client accounts. Some Wells Fargo customers reported problems accessing their online accounts Wednesday morning, which the bank said they were working to resolve. By mid-afternoon, Wells Fargo said the problem had been resolved.

“We apologize to our customers who may have experienced problems with our online banking this morning due to high volumes,” a Wells Fargo spokesperson told CBS MoneyWatch in an emailed statement. “This will not affect the March 17th incentive payments credited to accounts today. We are working to resolve the issue as soon as possible.”

Other banks immediately credited the money to customer accounts. Current, a New York-based banking startup, used its own balance sheet to credit the funds instead of waiting for settlement. Some of his clients gained access to their stimulus funds on March 12, a day after President Joe Biden signed the $1.9 trillion bill.

The organization that manages electronic transfers said Monday that the IRS has set the settlement date of March 17, adding that there is “no mystery” about where the money is. “It’s still in government,” Nacha, the organization that runs the ACH network, told CBS MoneyWatch in a statement.

“This is the date when the IRS will provide the funds to the banks and credit unions to further make available to recipients,” Nacha said in the statement. “The Nacha Rules require the banks and credit unions to make the funds available to account holders by 9:00 a.m. local time on the settlement date, in this case again on March 17.”

It added, “The IRS chose the date of March 17, which is the date the IRS plans to allow settlement.” It added that payments should be deposited into accounts by March 17 at 8:30 a.m. ET.

“This is literally when government money will be transferred to the clearing accounts of banks and credit unions at the Federal Reserve,” the group added.


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Threatens to close accounts

Some customers have threatened to leave their bank on social media, citing the delay in accessing the funds.

“We know the importance of the incentive funds to our customers, and Wells Fargo makes the incentive funds available immediately when they are made available to us,” the company said in a statement.

A group of nine banking and credit union industry groups on Tuesday blamed the IRS rather than banking institutions.

“While the IRS could have chosen to send the funds through Same Day ACH or provided an earlier effective date, it chose not to,” said the group, which includes the American Bankers Association and Credit Union National Association. . in the statement. “It’s up to the sender, in this case the IRS, to decide when he wants the money to be made available and the IRS chose March 17.”

Wells Fargo added that it will continue to help customers who are experiencing financial difficulties and need additional assistance.

“Our goal is to support our customers, and we will proactively reverse outstanding Wells Fargo fees, including overdrafts, for those who have a qualifying negative daily balance when their stimulus payment is deposited,” the bank said in an emailed statement. -mail.

Wells Fargo added: “As with previous incentive payments, we will proactively contact those customers who have a qualifying negative daily balance on the day prior to the deposit to inform them of the specific steps we have taken, including providing of temporary postponement of repayment”

IRS: days to weeks

Most Americans receive one of the $1,400 checks, but not everyone receives a check right away. The IRS will send the checks in batches over the next few days and weeks. The first checks were aimed at eligible taxpayers who had provided direct deposit information on their 2019 or 2020 returns, the Treasury said on Wednesday.

In past incentive check payments, the IRS has also prioritized giving the incentive money quickly to those it knows how to reach, usually people who have direct deposit information with the IRS. It’s a huge effort, given that the IRS has $422 billion in funds to distribute to more than 100 million taxpayers.

Most taxpayers don’t need to take any action to receive the checks, Treasury and IRS officials said Friday. People can also check out the “Get My Payment” site on IRS.gov, which the IRS has reopened for the third round of stimulus checks.