Valley businessman may have to shut his doors because of his bankPosted: Updated:
PHOENIX -- A Valley businessman says he may have to shut his doors and not because of slow business, but because he says his bank is causing a problem for him.
Most people are upset with banks for failing to modify their home loans, but Yasha Gadaey says it's not his home but his business that is in trouble -- all because of a bank's decision to freeze his assets.
Yasha and his son, Nerik, say they take great pride in their family business, Yasha From Russia European market, which they started more than 10 years ago.
"The store means my life to me," Yasha said. "I can't stay without job. I can't stay home. I work seven days a week."
Yasha and his son say Chase Bank convinced them to drop their business account with a competing bank and open an account with Chase.
They both thought it was a good idea so they decided to switch.
"Everything was going smooth until recently," Nerik said. "There was a fraud charge on our business account."
Yasha and his son had no idea what was going on. So they got in touch with Chase Paymentech, the processor that handles credit card transactions through Chase. Apparently, Chase Paymentech put a freeze on Yasha's business account for a transaction they thought was suspicious.
"We're always happy if we make a big sale," Yasha said. "For them to do this, it's like they're punishing us for trying to make money."
According to Nerik, some customers came into the store two months ago and purchased $2,700 worth of European china and used a credit card for the purchase. Although the purchase was legitimate, Chase Paymentech flagged the purchase and froze Yasha and his son's account.
With the account frozen, the two men can't access nearly $10,000 worth of pending credit card transactions, money the men say they need to keep the business going.
"We might potentially close the business if this keeps up," Nerik said.
In the meantime, the store can only accept cash for any transactions, meaning they have to turn away numerous credit card users, which they say is 75 percent of their business.
"It's already the third week, causing me my business, people are walking away instead of buying because not everybody has the cash to pay," Nerik said.
3 On Your Side contacted Chase and they agreed to look into the matter for us.
For now, everyday they spend investigating that so-called fraudulent charge means one more day closer to this business shutting down.
"I don't want to close my business," Yasha said. "Everybody feels sorry for me, but nobody can help me."
Chase says they are making this matter a priority and will keep us posted on the outcome.