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Yep! They will act like a sponge, especially if piled deeply. My yard is in a low lying area and it's incredibly never pooled with water since I've been putting thick layers of woodchips every couple years. It also creates amazing compost you can access when you need it! French drain or simple...

I'd suggest a few things. Watch where the water pools - can you dig some swales to guide water to a lower point so that it's not as mucky. Can you find some carbon materials - leaves, woodchips, dry grass etc. Anything dry and brown and put as much as you can in the area. That will help balance...