Chase forced to pay back military families over foreclosures

pic60

In a small victory for working-class military families whose homes were illegally foreclosed on, JPMorgan Chase Manhattan bank agreed to pay over $56 million in damages. The settlement came as a result of public pressure and a class action suit brought by Marine Corps Capt. Jonathon Rowles. Over 6,000 troops are covered in the legal action.

Chase and several other banks, including Morgan Stanley and Deutsche Bank, in addition to overcharging, forced military families out of their homes during the financial meltdown.

Federal laws explicitly forbid foreclosures involving women and men in uniform.

Labor and community groups asked Chase to impose a yearlong moratorium. The banking giant, however, refused. Instead, in a public statement in February, Chase said "Going forward, if Chase ever has a wrongful foreclosure sale on an SCRA-covered customer, Chase will forgive all of their remaining mortgage debt, as well."

This week's settlement does not end an ongoing investigation by the Justice Department of the several banks included in the scandal.

While not going far enough, it does represent a small victory. Firedoglake writes, "In the final analysis, not a single military member lost their home, those that were wrongfully evicted got their home back free and clear and those ripped off got all the money back for their ripoff plus thousands more, and a reduced interest rate, and maybe a job."

In addition, the agreement "also calls for JPMorgan to cut interest rates on all mortgages held by deployed troops to 4 percent for one year," says Bloomberg News.

The deal still requires approval from a judge.

Image: Adam Fagen // CC BY-NC-SA 2.0

Post your comment

Comments are moderated. See guidelines here.

Comments

  • "Going forward"....? No, No, No. When banks were bailed out, the bail-out was the result of the banks' greed in past actions that set up the economic fall. Come on, challenge Chase. You've got the numbers!

    Posted by Judi Wilson Gay, 04/29/2011 2:45pm (3 years ago)

  • Great to hear, but who the heck is Firedoglake and why do any of us care about his/her/its analysis of anything?

    Posted by Um.. what?, 04/28/2011 3:58pm (3 years ago)

  • This will probably be the last class action law suit because the repuke side of suckpreme court says we can't do it anymore to corporations.

    Posted by republicuntsareTRAITORS, 04/28/2011 3:47pm (3 years ago)

RSS feed for comments on this page | RSS feed for all comments