JP Morgan Chase Overcharged 4,000 Military Home Loans, Admits Erroneous Foreclosures

By Kyle Chezum Updated on 1/17/2011

1/17/11

JP Morgan Chase Bank admitted today that it overcharged 4,000 military families on their mortgages.  The Servicemembers Civil Relief Act prevents banks from charging more than 6% interest on home loans under some circumstances and forbids foreclosures on qualifying military families.  Chase, it seems, charged higher interest to at least 4,000 military mortgage holders and foreclosed on at least 14 homes improperly.

Kristin Lemkau, a spokeswoman for Chase, said, "We made mistakes here and we are fixing them.”  The bank is taking steps in this direction.  According to HousingWire, Chase has agreed to disperse about $2 million dollars in refunds to families that suffered as a result of the bank’s mistakes.

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