CUSTOMERS banking with Chase have been left scrambling to secure their valuables after the financial institution shared a warning that it was phasing out a handy safety feature.
The banking giant is moving to no longer offer safety deposit boxes, and customers are protesting.
Chase users will no longer be able to access a key service as the bank rolls back the offering[/caption]
Chase has warned customers that it is phasing out safe deposit boxes[/caption]
Safe deposit boxes are secure, locked containers stored in bank vaults or at other financial institutions that consumers can rent to protect their valuable items.
They pay an annual fee to protect items such as jewelry, documents like birth certificates and deeds, and heirlooms from home-based risks like theft and disasters.
Many banking institutions are scaling back on their safety deposit box offering or even getting rid of the service entirely, blaming high maintenance costs and dropping consumer demand.
For example, JPMorgan Chase, the largest bank in the country, is in the process of phasing out all of its safe deposit boxes.
Back in 2021, the company stopped offering the service to new customers only, with existing customers not necessarily impacted, a Chase spokesperson told Fox affiliate KDVR.
Now, the banking giant is planning to completely eliminate the service, even for existing clients.
“As our customers continue to look to us for advice and financial solutions, we have decided to phase out all remaining safe deposit boxes across the country,” the spokesperson told KDVR.
“Doing so allows our bankers to spend more time helping clients.”
The Chase representative did not share an exact timeline for the nationwide phase out or how long customers will have to retrieve their valuables.
They did, however, note that existing customers will be notified in advance.
The U.S. Sun reached out to Chase for comment but has yet to hear back.
THINK OUTSIDE THE BOX
Chase isn’t the only bank phasing out its safe deposit box offering.
Other major institutions such as Capital One, PNC, Santander Bank, and Citizens Bank have cut back on the service.
While some banks no longer allow clients to rent new safety deposit boxes, others have stopped offering the boxes altogether, citing high maintenance costs as well as reduced demand.
How to contact your bank
WITH bank scams running rampent, it is important to know how to reach out to your bank without risking fraud.
There is of course the foolproof method of going to your bank in person, but you are likely going to be directed to a customer care phone line.
In order to ensure that you are contacting the bank, make sure to use a phone number given to you by the representative or off of the bank’s website.
Some banks also have online helplines that can securely connect you with a representative.
Conversely, if you think the bank is reaching out to you with an account issue – make sure to verify the concern by calling a bank contact that you know is legitimate.
Scammers commonly mascarade as bank representatives to steal information from frightened customers.
There are roughly 20% less than the 40 million safety deposit boxes that existed a few years ago, Jerry Pluard, co-founder of Safe Deposit Box Insurance Coverage, previously told The Wall Street Journal.
The move away from safe deposit boxes comes as consumers shift to digital banking, resulting in a reduced need for brick-and-mortar banks and in-person services.
As more services are available online, many financial institutions feel as if the security boxes are not profitable enough, as they are costly to build and require maintenance, security systems, and staff training, among other expenses.
BANKING BUST
One user on Reddit complained that they were only made aware of the impending phase out of safety deposit boxes at Chase because they happened to visit their local branch.
While visiting the branch to get some Euros in June, they were informed that they needed to empty their safe deposit box by August or Chase would “drill the box and send its contents to some central depot God knows where.”
“The first thing I did was protest the loss of the service, which I need not get into here,” cried the user.
The customer complained that Chase had not notified them “in any way shape or form,” not receiving a letter, email, phone call, or text from the bank.
“If I hadn’t needed to go into the branch, I’d have never known that they were requiring me to retrieve the contents of the box and take my business elsewhere.
“I had birth certificates for me and my family, all of our social security cards, marriage license, wills, etc… all of the things I wouldn’t want lost in a house fire,” they said, encouraging others to reach out to their local branch regarding their safe deposit boxes.
Other Chase customers in the comments section shared that their local branches were similarly axing the service, although many noted that they had received a letter informing them of the change.
As Chase transitions away from safety deposit boxes, the bank is also plotting to close down all 5,000 locations for 24 hours soon.
Plus, check out the truth behind a new “exploitative” overdraft law at Chase and how it will affect your account.
Chase, among other banks, is planning to phase out safe deposit boxes due to high costs and low demand[/caption]
Story idea?
If you have an exclusive idea or story tip for The U.S. Sun, feel free to reach out to me at maya.lanzone@the-sun.com!
