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Military homeowners’ class action suit against Chase settled for $48 million

Military class action suit

JP Morgan Chase has settled a class action suit for violating the nearly 70 year old Servicemembers’ Civil Relief Act (SCRA) which states that even when legal and in states that don’t require it, only a judge can authorize a foreclosure and only after a hearing where military members are represented. The law is in place to protect active duty military members from financial duress.

The lawsuit was brought on by Captain Jonathon Rowles who sued Chase Bank for a bevy of acts that violated SCRA including refusal to reduce his interest rate to six percent by the date required by SCRA and attempted to collect on account balances that didn’t exist.

Pending the judge’s approval, the settlement entails a $48 million payment by Chase to the class action suit for overcharging and falsely foreclosing on active military members, violating SCRA.

The $56 million breaks down to $12 million directly to the class action suit, $15 set aside for a case by case basis of payout, $6 million already issued directly to those who were overcharged, $6 million in additional benefits to borrowers wrongfully foreclosed upon, $8 million to pay plaintiffs’ legal bills with the remainder toward the formation of the Chase Veterans Advisory Council (VAC).

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Overseeing SCRA enforcement

Chase has offered a leadership role in the VAC to Capt. Rowles and it remains unseen if other banking entities will take similar steps in overseeing enforcement of the SCRA.

We reported in January about Sergeant James Hurley going through his home being foreclosed upon by the Deutsche Bank while he was fighting abroad, violating the SCRA.

Frankly, violations of the SCRA are not the only atrocious violation by the banks, there are numerous wrongful foreclosures homeowners have gone through from banks foreclosing on the wrong address to simple misreporting of credit. The lawsuits are not over and although in this case was a settlement, others have been awarded by a judge. It will be interesting to watch as the banks are brought to task over their misdeeds.

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  1. darlene

    May 26, 2011 at 1:25 pm

    JP Morgan Chase is putting banking back to the 1800's by blatently violating federal laws. I am a single mother and they have repeatedly tried to force me into foreclosure with mis-information and deliberate misdeeds. I try to make a modified payment and they deny it and refuse to accept it until I contact a government employee this is ludicrous. Why is there no class action suit in Michigan against a bank that is so blatent in violations?

    • Infinity

      May 30, 2011 at 1:06 pm

      My husband never received any thing from chase and what about the people that didnt know about the foreclose lawsuit? They foreclosed on his home in 2004..

  2. darlene

    June 30, 2011 at 10:46 am

    Chase recently reversed my July 1st payment, (trying to force my disqualification from the loan modification program). After repeatedly telling me that the July 1st payment was made, I have documentation, The payment of over $1000. was reversed. Now they have the funds floating somewhere but don't know where. They are not accounting for the payments made and repeated calls are fielded by people who only say, "I will research it." I have requested involvement from; the department of treasury, office of the comptroller of currency, the federal trade commission and department of Justice. Chase has not responded to any of them since March and as of June 30, 2011. Now they are blatently violating federal laws by taking monies and not accounting for where they are. A deliberate attempt to force me into default by backing out a payment already made is just the latest. According to Shelley from the office of the comptroller of currency they can take 10 to 20 days to respond…..I filed a complaint in March, May, June 9 and still Chase has never responded to our united states government. They are laughing at our government and it's citizens because they do not abide by the laws set forth. They hold themselves above the laws of this nation. Wake up America this is turning our banking back to the 1800's when the bank saw a property and snatched it from a mother with no husband. I have paid taxes since 1974 and now my government has turned it's back to me.

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