Monday, April 25, 2011

Chase to Pay $27M in Military Lending Dispute

J.P. Morgan Chase & Co. has reached a $27 million settlement in a class action lawsuit, which accused the bank of overcharging thousands of active-duty military members as well as wrongly foreclosing on a handful of military members.

To date, the company has issued $6 million in payments to borrowers who were overcharged. Chase will also provide an estimated $6.4 million in additional benefits to borrowers who may have been wrongly foreclosed upon.

"We hold ourselves accountable and responsible for these mistakes, and fixing them is just the beginning of a new way forward with the military and veteran community," says Frank Bisignano, chief administrative officer of J.P. Morgan.

Shortly after admitting the company’s military lending mistakes, the bank announced several programs to help active members and veterans as well as making a statement that it would not foreclose on any currently deployed military personnel.

Source: “JP Morgan Agrees To $27 Million Settlement To Resolve Military Lending Issues,” Dow Jones Business News (April 21, 2011)

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