Our smart loan rating for JPMorgan Chase financial services is 2.8, which is an average of the ratings given by some of the well-known independent websites. This rating is based on 1687 reviewers that have left their ratings about Chase Bank on different review websites.
Here is how FDIC recognizes JPMorgan Chase, popularly known as Chase Bank.
A national bank regulated by the Office of the Comptroller of the Currency, Chase operates in 26 states with 5558 branches as of December 16, 2015. California, New York, Texas, Florida, Illinois, Ohio, Arizona, Michigan, New Jersey, and Washington are some of the states where it has largest concentration of branch and office locations.
Here is a map to show the concentration of branch locations.
The holding company, JPMorgan Chase & Co., which is headquartered in New York City, is ranked as the world’s 6th largest public company by Forbes in terms of assets.
The largest among the Big Four Banks of the nation, JPMorgan Chase has a history of mergers and acquisitions, taking over companies like Chase Manhattan Bank, J.P. Morgan & Co., Bank One Corporation and Washington Mutual.
The consumer and community banking segment of the bank is popularly known as Chase Bank, which has its headquarters located in Chicago, in the office of the former Bank One Corporation. Here is what its Facebook page has to say about it.
Chase Loans and Consumer Credit Services
Chase financing services comprise mortgages and home loans, home equity line of credit, auto loans and credit cards. Except the last one, all are instances of secured loans.
Among the consumer credit services, Chase continues to offer only vehicle loans as it no longer originates student loans and unsecured personal loans.
However, it may continue to maintain a servicing portfolio on the loans that it had already issued prior to closing its relevant business segments.
Complaints against Chase Financial Services
According to Consumer Finance Protection Bureau, JPMorgan Chase has received a total of 31192 complaints since 2011, which is about 6.2% of the total complaints received by all institutions listed with the organization.
In comparison to Bank of America and Wells Fargo, which received 53044 and 39108 complaints respectively, Chase seems to have fared better given the fact it is now the largest financial institution serving more than 65 million customers nationwide.
In 2015, Chase received 7780 complaints of which 5714 complaints are related to its various consumer loan products, including home mortgages and credit cards. Here is how Chase compares with Wells Fargo and Bank of America in terms of the number of various consumer financing related complaints.
Reviews on Chase Financial Services
We have checked online resources provided by JPMorgan Chase and other independent websites, and studied the consumer complaint data provided by Consumer Finance Protection Bureau (CFPB) for the year 2015.
Chase offers mortgage loans to help buy a new home or refinance an existing one. Homebuyers can choose a home mortgage type depending on their need, budget and eligibility. These types include fixed-rate, adjustable-rate, jumbo, FHA, and VA mortgages. Besides, Chase offers a special type of mortgage to help borrowers with less-than-perfect credit and little down payment resources.
Homeowners can consider a home equity line of credit (HELOC) to meet their recurring fund requirements. With rates ranging from 3.50% to 6.50%, a HELOC can allow you to pay either only 1% of the outstanding balance (principal as well as interest) or only the interest component of the outstanding balance during the draw period (up to 10 years). The repayment period (up to 20 years) begins only at the end of the draw period.
One advantage with a HELOC is that the interest payment is tax deductible. Though there are no closing costs associated with a home equity line of credit, borrowers must note that it comes with an origination fee and an annual fee of $50. It is possible to avail up to 0.5% rate discount by opening a Chase checking account and linking it with your home equity account.
Chase also allows you to switch from a variable rate to a fixed rate with its rate lock options. A borrower can maintain up to five locks at the same time without paying a fee. The service can be availed during the draw period only but the locks can be extended into the repayment period. It is possible to cancel a lock within 45 days from when it gets activated.
Home Finance Complaints
Conventional fixed mortgage received about 28% of all mortgage complaints whereas ARM received just 10% of the same. FHA loans also received about 10% of the complaints closely followed by home equity loan or line of credit (8%). Most of the complaints (more than 40%) seem to have come from borrowers with non-standard forms of mortgages.
The biggest issues with Chase mortgage products seem to be loan modification, collection, foreclosure, loan servicing, payments, and escrow accounts. These issues comprise about 80% of the total mortgage complaints. Other major complaints are related to mortgage application, origination, broker, settlement process, closing costs, credit decision and underwriting.
Here is how a homeowner has to face problems during the process of loan modification.
Here is another Chase customer complaining about an escrow overcharge.
Chase offers auto loans as well as auto refinance loans. While the former is used to buy a new or used car, the latter is aimed at car owners who may want to lower their monthly auto loan payment.
A vehicle buyer can apply either directly at Chase or through a dealer. Chase finances vehicles that include new or used cars, small trucks, SUVs and minivans. The loan cannot be used to buy a boat, motorcycle or a recreational vehicle.
Buyers of used vehicles must note that the vehicles must not be more than five years old. Also the vehicles they intend to buy must not have run more than 75,000 miles.
Consumer Loan Complaints
Among the consumer loan segments, Chase offers auto loans more than any other loan types. As the number of borrowers is more, the complaints are likely to be more for vehicle loans (about 77%) than any other consumer loans. The complaints regarding personal loans, including installment loans and lines of credit, are not many in number as they are among the rarest of the financing options available at Chase.
For auto loans, vehicles leases and other forms of consumer loans, the basic problems with Chase seem to be related to managing the loan or lease. About 40% of the borrowers have something to say about the loan or lease management of JPMorgan Chase. A good percentage of borrowers (about 26%) have also complained about the problems they face while seeking help when they are unable to pay the loan.
Here is a review by an auto loan customer, complaining about the Chase management of the auto loans that have been paid off.
A credit card can be a good alternative to an unsecured personal loan, which Chase has stopped to offer now. A major issuer of credit cards, Chase has to offer a wide range of credit card products, including 0% APR and no annual fee credit cards. An example would be Chase Freedom, which offers unlimited 1% cash back on all purchases and limited 5% cash products on select product categories.
According to U.S. News and World Report, JPMorgan Chase is ranked third among the 18 credit card companies surveyed for customer satisfaction. The reviewer has taken into consideration CFPB data among many other factors while evaluating customer experience and preparing best credit card rankings.
Credit Card Complaints
Credit card complaints are the second largest after mortgage complaints. According to CFPB latest data, about 1844 complaints are registered for various issues related to Chase credit cards. Billing disputes are the most common issues with Chase. Consumers face a wide number of other issues as well, chief among them are identity theft/fraud/embezzlement, closing/cancelling account, APR or interest rate, and transaction issues.
The customer service department doesn’t seem to co-operate with the credit card customers when a billing dispute arises.
Expert reviewers have found JPMorgan Chase an average institution when it comes to customer satisfaction.
For example, JD Power has surveyed the bank for mortgage origination, mortgage servicing, auto financing and credit card services and provided it a rating of 3 for overall satisfaction and several other components, including customer interaction and communication, mortgage application and approval process, billing and payment, and problem resolution.
According to American Customer Satisfaction Index, Chase scored 71 against the industry benchmark of 76 in 2015. Interestingly, all the big four banks are below the industry benchmark.
Here is how a customer reacted on the poor customer service of Chase.