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Chase Bank Shut Down My Black-Owned Franchise Without Warning – Quincy Johnson

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For seven years, I invested my life savings, time, and energy into building a dream—a Black-owned Togo’s Sandwiches franchise in Clovis, California. As the only Black franchise owner in the area, I worked 16-hour days, hired and mentored local youth, and operated one of the top-rated stores in customer satisfaction.

Then, without warning, Chase Bank froze all of my business accounts. No court order. No advance notice. No explanation.

At the time, I was a loyal Chase customer. I processed every transaction through their system. I trusted them to protect my business. Instead, they enabled the enforcement of a questionable third-position UCC lien from Expansion Capital Group LLC—a lender currently under a Consent Order (CFL FILE NO.: 60DBO-44063) by the California Department of Financial Protection and Innovation for violations including working with unlicensed brokers.

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Initially, Chase claimed my accounts were frozen due to a court order, as stated in letters dated November 5, 2024, and January 2, 2025. Later, in a February 21, 2025 response, they retracted this and admitted it was due to UCC liens—not a court order. They apologized for “any confusion,” but failed to provide any legal case numbers or proper documentation to justify their actions.

Even worse:

  • They allowed two collection agencies to pursue the same debt at the same time.
  • They never notified me of the freeze.
  • They refused to correct their mistake despite clear evidence.
  • Their final letter misdated key information and ignored every legal objection I raised.

As a result, my franchise was shut down on July 11, 2024. I lost more than $570,000. My accounts remain frozen, and Chase has since stopped communicating, stating that their decision is “final and accurate.”

This is about more than one business. It’s about a broken system that allows banks to destroy small, minority-owned businesses without accountability. If this can happen to someone like me—a retired federal worker, a law-abiding entrepreneur, and a paying customer—it can happen to anyone.

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The injustice doesn’t end with financial loss. During this ordeal, I was also subjected to racial slurs from a debt collector representing Expansion Capital Group. I was told I was “just a sandwich maker.” The silence from Chase in the face of such blatant disrespect made it clear: I wasn’t treated like a valued customer—I was being erased.

That’s why I launched UnlawfulHolds.com—to raise awareness and help others share their stories. If you’ve had your funds frozen without due process, you are not alone. We must shine a light on these practices and demand change.

This is about dignity. This is about justice. And it’s time for our voices to be heard.

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Quincy Johnson
Clovis, California
Retired Federal Employee
Entrepreneur
Founder, UnlawfulHolds.com

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