More than 700 child support checks worth about $94,000 bounced Friday after a banking error by JPMorgan Chase, the state’s new depository, according to state and bank officials.
Nancy Norris, vice president of media relations at JPMorgan Chase, said the checks drew insufficient funds after a human error.
The problem could’ve been worse, but the bank caught the error early, she said.
“Fortunately we caught it early enough that not all recipients are affected by it,” Norris told The State Journal Wednesday.
The bank had the problem fixed overnight Tuesday, Norris said.
JPMorgan Chase added a double-check system so the problem doesn’t recur, and the bank is in the process of contacting child support recipients and setting up a phone number for those affected to call, she said.
“If they had any overdraft fees because of this mistake, then Chase will cover those costs,” Norris said.
Jill Midkiff, spokeswoman for the Cabinet for Health and Family Services, said the state is helping JPMorgan Chase fix the problem, which affected 748 child support payments.
“Obviously we want this corrected as soon as possible, and we are providing any assistance we can to the bank so they can notify individuals who may have been affected by the bank’s error,” Midkiff said.
County Attorney Rick Sparks, whose office handles child support cases here, said he hasn’t heard of any child support recipients affected in Franklin County.
“Nobody’s called me and said, ‘My check’s bounced,’ and my staff said they haven’t heard from anybody,” said Sparks. “But that’s yet.”
Sparks said those affected can call his child support office at 223-1000 or the state’s child support hotline at 1-800-248-1163.
In July, JPMorgan Chase won a two-year, $1.3 million contract with the state to handle depository-banking services. The bank bested Farmers Bank, which asked for $900,000 more than JPMorgan Chase and had held the contract since 1928.