Service Member’s Rights under the Servicemember’s Civil Relief Act
JPMorgan Chase is issuing checks after learning of overcharges and errors in its handling of 4,000 service members’ mortgages. Chase has resolved thirteen of the fourteen cases of service members that were forced into foreclosure and is working on resolving the last case. The errors were recognized after a lawsuit was filed by a Marine fighter pilot - specifically - errors were made in the handling of loans of service members who requested their rights under the Servicemember’s Civil Relief Act.
Under the Servicemember’s Civil Relief Act, service members receive a number of protections. This act applies to loans taken out before an active-duty service member joined the military or before the National Guard or reserve member is activated. Guaranteed student loans do not qualify under the act. Excess interest, over 6%, is forgiven, effective the day of the service member's orders, or the date active duty begins. A written notice of the request for relief, along with a copy of orders, must be sent to the lender. The lender must be notified when active duty is over. The interest cap on mortgage interest may remain for one year after, but non-mortgage interest caps are lifted the date active duty is completed.
To read more on this, visit Errors affect thousands of military mortgages.
If you have any questions, please contact Wood, Atter & Wolf, P.A., a Jacksonville, Florida law firm.
