Banking On Trust: An Illusion Of Financial Security

EDITOR'S NOTE: When entrusting our valuables to banks, we often believe that our assets, including jewelry, are secure and protected. And with that assumption, we’re making a huge mistake. A recent incident involving JPMorgan serves as a stark reminder that even these established institutions may not always guarantee the safety of our possessions. In this article, we will delve into the story of a couple who claims that JPMorgan sold their $10 million jewelry collection without their consent, highlighting the potential risks associated with placing your assets in banks and the importance of being vigilant about the security of your valuables.

JPMorgan is facing a lawsuit from a couple who are accusing the bank of improperly drilling open their safe deposit boxes and selling off millions of dollars’ worth of jewels and other personal property that was inside.

Jorge and Stella Araneta, who live in the Philippines but have an apartment in Manhattan, said JPMorgan sent bills for their safe deposit boxes to the wrong address, which led them to miss payments.

They said that despite them settling their account with the bank, two of their storage boxes were drilled open, and the contents were ultimately auctioned off for a fraction of their value.

They sued JPMorgan last year, arguing that several million dollars’ worth of their possessions—including jewelry and precious metals—had been sold without their knowledge because of the bank’s errors.

A U.S. District Judge threw out part of the lawsuit on Wednesday under New York banking law, but allowed claims of negligence and other counts against JPMorgan to proceed.

Final notices

In 2016, the bank mailed final notices about the renewal of two of the seven safe deposit boxes that the couple had begun leasing in 2006.

Those notices warned that if the Aranetas did not make payments for the storage facilities within 60 days, JPMorgan would drill their safety deposit boxes and remove their contents, according to the lawsuit.

However, the Aranetas claimed that the notices were not mailed to their address, but to a P.O. Box in Baton Rouge, La. They said they had never maintained a P.O. Box in Baton Rouge, and had never advised or authorized JPMorgan to send notices to that P.O. Box.

In Feb. 2017, the bank drilled open four of the Aranetas’ safe deposit boxes and removed their contents, the lawsuit alleged, with the couple claiming the company did not notify them it had done so.

When they visited one of the bank’s New York City branches in 2019, they said, they were informed that the contents of their safe deposit boxes had been transferred to a secure location in another city. They claimed to have made payments that day to renew their annual leases on three deposit boxes and pay off any past unmade payments.