Photo: Flickr via US Army Africa
Whoops: JP Morgan wrongly foreclosed on 14 active-service military families and overcharged thousands more on their mortgages, according to the Wall Street Journal.The bank apparently launched an internal investigation about a year ago and discovered it had made a slew of mistakes that contravened the Servicemembers Civil Relief Act (SCRA).
Here’s why foreclosing on them was probably a mistake, aside from the PR issue.
- SCRA stipulates that interest rates on the homes of active-duty military families can not exceed 6%.
- Plus they’re not subject to the delinquency process, which includes foreclosures.
The bank is currently refunding about $2 million to more than 4,000 families who weere overcharged, and a spokesperson apologized for the errors:
“We made mistakes here and we are fixing them. Any customer mistake is regrettable. We feel particularly badly about the mistakes we made here.”
The bank has now created a special team dedicated to handling military lending.
This misstep will be extra bitter for the bank, which often presents itself as a supporter and ally of current and past servicemen and women.
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