JPMorgan Chase Resolves Lawsuit with Military Families

In a joint announcement from ""JPMorgan Chase"":http://www.jpmorganchase.com and U.S. Marine Corps Capt. Jonathon Rowles, the financial services firm revealed it will provide $27 million in benefits to its military customers.
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The funds are part of a settlement to a class action lawsuit over financial protections due to military customers under the Service Members Civil Relief Act (SCRA).

JP Morgan admitted to violating the SCRA after the company wrongfully foreclosed on military families and overcharged thousands.

""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 New York-based JPMorgan Chase and head of Chase Home Lending.

""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,"" Bisignano added.

Under terms of the settlement, which is pending court approval, Chase will pay $12 million and set aside $15 mil-

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lion for additional damages on a case-by-case basis. Any remaining funds will benefit military members, veterans, and their families.

As of April 2011, Chase had issued $6 million in payments to borrowers who were overcharged. It will also provide an estimated $6.4 million in additional benefits to borrowers who were subjected to wrongful foreclosure practices.

""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,"" said Capt. Rowles. ""We also hope others follow Chase's lead in creating additional programs for job creation, homeownership, and other financial assistance for veterans and members of the military.""

The settlement follows the recent announcement of several ""new Chase programs"":http://www.chasemilitary.com to help military and veteran customers, including the establishment of a Military and Veterans Affairs Advisory Council.

The purpose of the council is to advise the firm on a comprehensive strategy to design programs and products aimed at serving the unique needs of members of the military, veterans, and their families.

Tom Higgins, head of operational control and military and veterans affairs at JPMorgan Chase, will chair the council. The initial five members are Gen. Stanley A. McChrystal, USA (Ret.), Laban P. Jackson Jr., Roger T. Staubach, Brenda Hall, and Col. Michael F. Canders, USANG (Ret.).

""We are deeply honored to have these extraordinary leaders advising us,"" said Bisignano. ""People best suited to design programs for the military are leaders in the military. This group understands the emotional and financial hardships our military, veterans, and families endure during deployments and going on and off active duty. After all the military has done for us, we believe it is the responsibility of our firm to help manage these difficulties and transitions any way we can.""