Millions to be Paid to Servicemembers for Illegal Foreclosures by Chase, Citi, Wells Fargo, GMAC, and Bank of America
The nation’s largest banks illegally forced hundreds of military families out of their homes by foreclosing illegally on them. So says an announcement from the U.S. Department of Justice, who recently entered into a settlement with JPMorgan Chase, Citi, Wells Fargo, GMAC (Ally), and Bank of America.
Under the Servicemembers Civil Relief Act, a military member deployed on active duty may not be foreclosed on or sued. The reason for this prohibition is that our soldiers and sailors should not have to worry about losing their homes while defending our homeland.
But the big banks disregarded this protection, and foreclosed on numerous servicemembers during their deployment.
“We are very pleased that the men and women of the armed forces who were subjected to unlawful non-judicial foreclosures while they were serving our country are now receiving compensation,” said an assistant attorney general.
In one story reported in 2013, an Army staff sergeant learned that his home was foreclosed on after a letter was forwarded to him in Iraq.
The Department of Justice’s press release is available here: Service Members to Receive Over $123 Million for Unlawful Foreclosures Under the Servicemembers Civil Relief Act