Americans serving their country in the armed forces are supposed to catch a break from banks when it comes to mortgage rates. But JPMorgan Chase somehow lost sight of this federal requirement, and not only overcharged thousands of military personnel and their families, but also foreclosed on some and kicked them out of their homes.

 

Bank officials have admitted their error, and begun mailing out $2 million in refund checks to active-duty personnel who were told to pay more than 6% interest on their home loans (the maximum allowed under the Servicemembers Civil Relief Act).

 

JPMorgan only realized its “mistake” after Captain Jonathan Rowles of the U.S. Marines sued the bank for improperly charging his family too much on their mortgage. The bank committed the same mistake with as many as 4,000 troops, including some fighting in Afghanistan, and improperly foreclosed on the homes of 14 military families.

 

Those who lost their homes will get them back, insist bank officials.

-Noel Brinkerhoff

 

No. 2 Bank Overcharged Troops on Mortgages (by Lisa Myers and Sarah Heidarpour, NBC News)

Bank Overcharged Troops for Mortgages (by Bryant Jordan, Military.com)

JP Morgan Wrongly Foreclosed On Military Families (by David Benoit, Wall Street Journal)