Written by Biloxi
One month ago, JPMorgan Chase was under fire for overcharging troops and foreclosing on military families' homes that are on active duty. Chase violated The Servicemember's Civil Relief Act which permits active-duty military personnel to postpone legal obligations such as pending trials or defer payment of some forms of debt. The bank agreed to issue approximately $2 million in refunds to military families and ensure those who were forced into foreclosure would get their homes back. Now, the bank had decided two months ago to end a program which has helped hundreds of service men and women by allowing them to defer student loan payments while on active duty, according to NBC News. We first learned of Chase terminating the program from Kerri Napoli, wife of Army Pfc. Andrew Napoli, is now serving near Kandahar. Ms. Napoli was told after repeated conversations with the bank that Chase decided in December to stop allowing active-duty troops to delay paying their student loans. When Ms. Napoli contacted NBC News after reading about the Chase’s mortgage scandal with military families, the bank changed its mind and reverses its decision:
The next day, she says, the bank told her it would grant her husband an exception to the new policy and defer his loan.
The bank also has had second thoughts about ending a program aimed at helping U.S. troops with their family finances. After NBC News contacted the bank about why it had stopped allowing deferred payments, a Chase official said that decision was being reversed and the program would be reinstated.
“Upon review, we have decided to reinstitute the loan deferment for all active-duty service members who request it,” said Kristin Lemkau, a Chase spokeswoman.
Lemkau also said the earlier decision to stop providing deferrals applied only to new participants, and that troops already granted benefits would never have lost them.
“As a policy, Chase tries to go above and beyond what is required in the Servicemember’s Civil Relief Act,” Lemkau said. She says she believes no other major banks even provide this kind of program for the troops.
You read more of JPMorgan Chase's response to NBC News' report on military student loan deferral policy. Click here.
Rep. Jeff Miller, R-Fla., chairman of the House Committee on Veterans Affairs, is conducting a hearing on Wednesday in which a Chase official has been asked to testify. Rep. Miller told NBC News that "it was hard to believe that a financial institution in this country would try to take advantage of somebody on either active duty, military service or veterans."
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