After Wrongly Foreclosing on Military Families Chase Apologies
Very recently J.P. Morgan Chase apologized for wrongly foreclosing on military families. The bank has launched new programmes targeting military families and veterans. It has admitted to overcharging service members on active duty numbering thousands and foreclosing wrongly on about a dozen of them.
The implementation of the programme will make some of the military persons qualified for mortgages at reduced rate. The mortgage modification programme would be enhanced for those in the military who are facing difficulties in being current. Chase has also promised that it would not foreclose on any military personnel on active duty during the time of their deployment.
The CEO of Chase, Famie Dimon said that these plans and other steps “are a start, but in no way a finish” to rectify the wrong steps taken by Chase concerning its military borrowers.
Dimon noted in a release to the news media, “This Company has a great history of honoring military and veterans, and the mistakes we made on military foreclosures are a painful aberration on that track record. We deeply apologize to our military customers and their families for these mistakes. We cannot undo them, but we can take accountability for them, fix them and learn from them”.
J.P. Morgan Chase, based in New York last month admitted its errors. One of the mistakes was transgressing a law that puts a cap on fees and interest for military personnel who are on active duty; they cannot be charged over 6% for most of their debit incurred prior to deployment. Their properties cannot be foreclosed upon till they return.
A newly set up government office (Service Member Affairs) has been given the responsibility of protecting the military persons from financial traps and pitfalls. Its head, Holly Petraeus wrote to the CEOs of 25 mega banks. She said that they should ensure that the staff is conversant with this matter of legal protection for the military. The letter came following release by NBC News of transgression of law as regards rates of mortgage and foreclosure operations by Chase.
Some of the steps Chase is planning to take are reduction of mortgage rates, loan modifications, assistance towards home ownership and plans to ally with other entities to hire 100,000 from the military and veteran groups over the following decade.
These announcements led to the increase of the shares of Chase.
Related Tags
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Thursday, June 30th, 2011
[...] the only bank that does this. JPMorgan Chase (JPM) engages in similar practices. See here and here, and so does Wells Fargo (WFC). These aren’t the only banks, but you get the [...]