Chase is a lot of questions about how it handles military finances. There were very suspect conditions around certain foreclosures on active military servicemembers’ homes. Chase is re-thinking (for a second time) the way they manage student education loans for active servicemembers on deployment. Many of these service members were applying for payday loans just to stay above water.
Exploration by two groups of JPMorgan Chase's treatments of active service members
JPMorgan Chase is a mega-finance bank that provides financial services such as student education loans, home loans, checking, savings and lines of credit. The way Chase has handled military loans as well as all other finances of active-duty service members is being investigated by congressional committees and federal prosecutors. Accusations state that Chase is charging too much for the active duty service members. This is why the investigation is happening.
Obtaining a student loan as a service member
Active-duty servicemembers who have their student education loans through 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, JPMorgan Chase would defer student education loans. This short term installment loan policy was reversed in late January 2011. Some servicemembers were informed that they would owe over $400 per month additional, starting in just 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.
Congressional inquiry into Chase home loans
Just a few weeks ago, an ABC News investigation that got congressional inquiries going started with Chase. Homes in Irving, TX and Reno, NV were wrongly foreclosed on for service members while also overcharging occurred, which Chase admitted to. The Service Member Civil Relief Act is one that was broken with this and with the education loan policy. Because of the act, what service members are held responsible for while on active duty is limited. This is for legal and financial actions specifically.
Information from
MSNBC
msnbc.msn.com/id/41415796/ns/business-personal_finance/
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