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JPMorgan Chase Reaches Settlement in Military Mortgage Lawsuit

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A class action lawsuit filed by  Marine Corps Capt. Jonathan Rowles alleging JPMorgan Chase violated the Servicemembers Civil Relief Act (SCRA) and overcharged active military personnel on their mortgage payments, has reached settlement.

Under the SCRA the federal law caps interest rates at 6% for active personnel and forbids foreclosure on those on active duty until nine months after the servicemen returns from duty.  A federal investigation found that JPMorgan Chase had illegally foreclosed on 18 military homes and overcharged 6,000 military personnel.

Under the settlement filed in  U.S. District Court in Beaufort, S.C., JPMorgan will pay $12 million to nearly 6,000 service members, and has allocated $15 million more for individual damages.  $6  million in payments have already been made and $6 million more has been set aside for those subjected to wrongful foreclosure. The bank  will also pay $8 million in legal fees and costs incurred during the class action lawsuit.

Frank Bisignano, head of Chase Home Lending said “We are sorry and regret the mistakes our firm made on mortgages for members of the military, and we’d like to thank Capt. and Mrs. Rowles for helping us address them,” and  “We hold ourselves accountable and responsible for these mistakes, and fixing them is just the beginning of a new way forward.”

breakinglawsuitnews.com disclaimer: This article: JPMorgan Chase Reaches Settlement in Military Mortgage Lawsuit was posted on Thursday, May 19th, 2011 at 8:27 pm at breakinglawsuitnews.com and is filed under Fraud Lawsuits.

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