JPMorgan Chase has admitted to overcharging military families on their mortgages, and illegally foreclosing on 14 families, NBC News reports.
NBC's report (see video below) focuses on one military family's five-year battle with the mortgage giant, who overcharged them by as much as $900 a month. While Marine Captain Jonathan Rowles was away on active duty, his wife Julia got calls demanding $15,000 they didn't owe. "It's been a nightmare, it's been my living nightmare," Julia Rowles told NBC News.
To protect them from financial stress, the Servicemembers Civil Relief Act ensures soldiers on active duty have their mortgage interest rates dropped to 6 percent and shield them from foreclosure. Rowles, who is currently in Beaufort, South Carolina, said she hadn't missed a single mortgage payment, but had calculated payments with the 6 percent interest rate she and her husband were entitled to. Chase instead charged the Rowles family, and thousands of others, up to 10 percent.
Chase admitted that 14 military families lost their homes thanks to the mistake, and 4,000 active service members have been wrongly overcharged. In a statement, JP Morgan Chase said they would be refunding around $2 million to families who had overpaid. The families who have been thrown out of their own homes will be allowed to move back.
Watch the NBC News report below.