JPMorgan sold $10 millions worth of jewelry from a customer's safe deposit, due to late rent

Safe deposit boxes at banks are a popular way for people to keep their valuable items safe and secure. However, what happens when the bank sells your valuables without your consent? That's the question a couple from the Philippines is asking JPMorgan Chase Bank in a lawsuit filed in the Southern District of New York.

According to the complaint filed on March 22, 2022, Jorge and Stella Araneta alleged that JPMorgan Chase Bank sold $8 to $10 million worth of their valuables that were stored in the bank's safe deposit boxes in New York. The couple, who live in the Philippines, claimed that the bank opened four out of seven of their safe deposit boxes after they failed to pay their rent.

The couple stated that they fell behind on their payments for the safe boxes because the bank sent the bills to the wrong address. The bank sent two final notices for the renewal of two boxes to a Louisiana PO Box that did not belong to and was not authorized by the couple, they said. The notices were returned to the bank.

The couple said that they paid the outstanding rent in full in October 2019 when they were at the bank in person to renew leases. The bank assured them at the time their valuables that were removed would be returned. However, JPMorgan still auctioned their items in the early summer of 2020, according to the complaint.

The couple estimates the contents of the safe deposit boxes to be worth $8 to $10 million. They did not provide a basis for this estimation in the complaint. JPMorgan sold the items for $552,700, according to the complaint.

The Aranetas are seeking compensation for their valuables. Court filings showed the contents of the safes included jewelry, Rolex watches, and gold coins. The complaint includes a five-page list of exhibits of items the couple says were inside the deposit boxes.

The case is proceeding with negligence and other counts, and US District Judge Naomi Reice Buchwald rejected one of the lawsuit's claims based on the interpretation of New York banking law, according to the court filing seen by Insider.

This case highlights the importance of ensuring that bills and notices related to safe deposit boxes are sent to the correct address. It also raises questions about the responsibility of banks to ensure that customers' valuables are safe and secure.

While banks have the right to access safe deposit boxes if rent payments are not made, they must follow proper procedures and protocols. They should also make every effort to notify customers before taking such actions.

In conclusion, if you are using a safe deposit box to store your valuables, it is crucial to keep track of the rent payments and ensure that the bank has your correct contact information. Additionally, it is important to review the terms and conditions of the agreement with the bank and seek legal advice if necessary.