Bank Offers $56M to Repay Military Families

JPMorgan Chase says it is willing to pay a whopping $56 million to settle the class-action lawsuit brought by 6,000 members of the military who accused it of overcharging them on their mortgages and violating the Servicemembers Civil Relief Act. A judge still has to approve the offer.

The case was initially brought by Capt. Jonathon Rowles, who says he was overcharged about $900 per month by Chase, which had him to verify his active duty status every 90 days and to reapply for SCRA status at least once per quarter between December 2007 and March 2010, according to the lawsuit.


The SCRA, signed into law by President George Bush in 2003 to replace a similar 1942 law, helps servicemen and servicewomen with certain financial obligations at home, such as rent or mortgage Search Homes for Sale See photos of homes for sale in your area and across the country on AOL Real Estate payments, when they are activated for military duty. For example, there is a 6 percent cap on interest rates, they cannot be evicted or have their lease terminated, and they can receive mortgage relief from their lender.

JPMorgan Chase has now offered to cut the interest rates for those military homeowners who did not see a correct cut initially, and it will give back homes to those who were wrongfully foreclosed upon, as well as forgive their mortgage debt. The lender also will pay $27 million in cash to the 6,000 military personnel who were overcharged on their mortgages while they were on active duty. That comes to about $4,500 per family.

JPMorgan already handed out about $6 million to those overcharged with higher interest rates. Of course, if a military member's home was already under 6 percent and wasn't due to increase on an ARM, they didn't get caught in some of this mess, unless they missed a payment and were being pursued for being delinquent.

JPMorgan officials said three months ago that one of the bank's units had made errors in the handling of mortgages covered by the Servicemembers Civil Relief Act. The lender will also contribute $15 million to a fund to go toward additional damages.


For more on mortgages and related topics see these AOL Real Estate guides:

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roadwhitelightng

god bless all banks for the great insitutions they are so you people can stop bashing the banks so there

April 27 2011 at 12:47 PM Report abuse rate up rate down Reply
libswillbeback

Severe ALL business with this immoral POS bank

April 27 2011 at 5:47 AM Report abuse -1 rate up rate down Reply
2 replies to libswillbeback's comment
roadwhitelightng

banks did nothing wrong good for the banks

April 27 2011 at 12:45 PM Report abuse rate up rate down Reply
roadwhitelightng

banks did nothing wrong

April 27 2011 at 12:48 PM Report abuse -1 rate up rate down Reply
bocavert

Has JPM, Chase altered it's way's? I think not. It is not a user friendly organization. Too big to fail. Part of the problem with a recovery in the housing market, effecting the whole economic recovery facing the American public is an absolute abuse of power. At one point in time, money loaned , or mortgages were indiscriminately given out without much background check or need, Predatory loans were the norm. In my recent dealings with JPM< Chase I have found the extreme where to maintain a credible existence in applying for a loan/ mortgage one is obligated to pledge all banking , investements, and portfolio earnings to the mortgage lender. In essence sign ones total values to the bank. I am old enough to take the high road and not place all my investements in one basket, or trust one bank. Besides, it may have been a quirk but my personal identity was compromised or possibly sold by a banking employee. Safe guards only work when integrity is above compromise. I have noted Chase employs too many hands in any transactions. and does not employ a valid "Standard Operating Proceedure" it so graciously flaunts to hide it's shortcomings.

April 27 2011 at 5:23 AM Report abuse -1 rate up rate down Reply
union1942

SHAME SHAME on Bank of America!!!! I dealt with them and they are THEE WORST of the bunch of CROOKS in banking along with CHASE!!! If you have accounts with them CLOSE THEM OUT>> YOU will not be sorry!!

April 27 2011 at 5:23 AM Report abuse -1 rate up rate down Reply
1 reply to union1942's comment
roadwhitelightng

banks did nothing wrong good for the banks

April 27 2011 at 12:45 PM Report abuse rate up rate down Reply
ED

they knew what they were doing when they done it. they can claim dumb and repay all that money, hopefully with interest cause they made interest on it, but they still made money on the deals even if they got caught. they play the "hope we dont get caught" type thing and if they dont then they profit all that much more and if they get caught then all they do is repay the money. it is a win/win situation unless they are fined billions and and made to confess all their deeds.

April 27 2011 at 4:54 AM Report abuse rate up rate down Reply
1 reply to ED's comment
roadwhitelightng

banks did nothing wrong good for the banks

April 27 2011 at 12:44 PM Report abuse rate up rate down Reply
Steve

Praise God.

April 27 2011 at 2:00 AM Report abuse +2 rate up rate down Reply
1 reply to Steve's comment
tyrebitre

Why ? What did god have to do with this ?

April 27 2011 at 2:13 AM Report abuse rate up rate down Reply
Edward J Cox

Should be forced to run a National add and print their misdeeds and apologies..

April 27 2011 at 1:32 AM Report abuse +1 rate up rate down Reply
roadwhitelightng

My flag will fly upside down for the reasons that it was employed to be for the reasons a flag flys in this manner of Distress as george washington would have said "O-L-M-G-I-T-N-H-4-T-W-S"

April 27 2011 at 12:48 AM Report abuse rate up rate down Reply
destin023

what a stupid business practice trying to screw over on these service members. JPM at least had these men/women with gov't guaranteed income attempting to make payments with their contracts/mortgages. What does JPM get when they evict them, more homes to manage & maintain during the worst housing downturn we've ever seen? Real smart guys, screwing over on the ones that guarantee your freedom to milk everyone else dry..

April 27 2011 at 12:34 AM Report abuse +1 rate up rate down Reply
2 replies to destin023's comment
Bobby

They show no mercy for anyone. It's just a shame that the CEO and Board of Directors won't face criminal charges as well.

April 27 2011 at 1:36 AM Report abuse +2 rate up rate down Reply
roadwhitelightng

Dont think the banks should pay any of them a penny !

April 27 2011 at 4:23 AM Report abuse -2 rate up rate down Reply
roadwhitelightng

greg hope it happens more often to them like it was said earlier theres good military and moron military . no in betweens

April 27 2011 at 12:17 AM Report abuse -1 rate up rate down Reply