NEW YORK, April 21, 2011 JPMorgan Chase (NYSE: JPM) and U.S. Marine Corps Capt. Jonathon Rowles announced today that they have agreed to resolve a class action lawsuit over financial protections due military customers under the Servicemembers Civil Relief Act (SCRA). This settlement follows the recent announcement of several new Chase programs to help military and veteran customers.
Under the terms of the class action settlement, which is pending court approval, Chase will make $27 million in benefits available to Chase's military customers. The firm will pay $12 million to the class and set aside $15 million for additional damages on a case-by-case basis as determined by a Special Master. Any remaining funds will be used to benefit military members, veterans and their families. To date, Chase 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 subjected to wrongful foreclosure practices.
"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," said Frank Bisignano, Chief Administrative Officer of JPMorgan Chase who was appointed head of Chase Home Lending in February. "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 as we make serving them a core part of how we operate our business every day. JPMorgan Chase has a proud history of honoring the military and veterans and we want to move forward from this experience to be an outstanding partner to the military across all of our businesses."
"My family and I thank Chase for resolving this matter," said Capt. Rowles. "It is our hope that this settlement will result in greater attention by the entire financial services industry to the nation's laws that protect our military families. We also hope others follow Chase's lead in creating additional programs for job creation, home ownership, and other financial assistance for veterans and members of the military. I look forward to working with Chase on these initiatives as an advisor to its Veteran's Advisory Council."
On February 15, 2011, Chase announced a series of programs to help military and veterans. Those programs include:
Reduced Servicemembers Civil Relief Act (SCRA) Pricing - Chase will lower eligible borrowers' effective mortgage interest rate to 4% while on active duty and for a year thereafter.
Military Modification Program - An enhanced modification program for all members of the military who have served on active duty as far back as 9/11/01.
Home Ownership Assistance -
Education and Training
For more information on the firm's current programs available to military and veterans, visit www.chasemilitary.com.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.1 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.