Chase to Pay $27M
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 companyâ€™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.