Mega Morgans

JPMorgan Chase Facing Inquiry Over Military Loans

JPMorgan Chase is facing dual congressional inquiries. The management of military members and their finances is proving troublesome. There were very suspect circumstances around certain foreclosures on active military servicemembers’ homes. Chase is re-thinking (for a second time) the way they handle student education loans for active servicemembers on deployment. Several military members were taking out payday advances just to stay above water.

JPMorgan Chase and active service members

There are many things that could be done at a mega-finance bank like JPMorgan Chase. Student education loans, lines of credit, savings, checking and mortgages are all services available. Congressional committees and federal prosecutors are both investigating how Chase has handled the funds of active-duty service members, including military loans. The service members are getting charged too much by Chase, in accordance with accusations.

Student education loans that are for military members available

Active-duty servicemembers who have their student education loans through JPMorgan Chase received surprising news over the last few weeks. The loans were going to be due soon, even though they were deferred. While military members were on duty, Chase would defer student loans. This short term installment loan policy was reversed in late January 2011. The $400 per month additional would be owed by service members starting a few weeks. There were threats of congressional inquiries that came while service members complained of needing pay-day loans to cover the cost. The policy was then reversed again by Chase.

The query into mortgages at Chase

Chase has been in trouble for a couple weeks now. This is because of an ABC News investigation that got congressional inquiries tipped off. Chase has admitted that they overcharged and wrongly foreclosed on several service member’s homes, including homes in Irving, Texas and Reno, Nevada. This and the education loan policy too violate law. The Service member Civil Relief Act was violated. The act limits the legal and financial actions for which servicemembers can be held responsible while they’re on active duty.

Citations

MSNBC

msnbc.msn.com/id/41415796/ns/business-personal_finance/

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