Military Members Facing Difficult Chase Loans

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Chase is facing dual congressional inquiries. The management of military members and their funds is proving troublesome. JPMorgan Chase has foreclosed on many active servicemembers’ homes under suspect circumstances. Active duty military member’s student education loans are the next point of contention for the bank. Several military members were applying for pay day loans just to stay above water.

JPMorgan Chase and active service members

Things like student education loans, mortgages, checking, savings and lines of credit are all available at the mega-finance bank, Chase. The way Chase has handled military loans as well as all other funds of active-duty military members is being investigated by congressional committees and federal prosecutors. The accusation is that Chase is overcharging active duty service members.

Service members can get a student loan too

Student loans through Chase for active-duty members meant surprising news. In the last few weeks, this has been circulating. Their student education loans, which had previously been deferred, were coming due. Student loans would be deferred while military members were on active duty. This was the JPMorgan Chase policy. In January 2011, the short term personal loan policy changed. In just a few weeks, the service members were informed they would have to start paying. This meant about $400 a month extra. There were threats of congressional inquiries that came while military members complained of needing pay-day loans to cover the cost. The policy was then reversed again by Chase.

Congressional inquiry into Chase home loans

JPMorgan Chase has been in danger for a couple weeks now. This is due to an ABC News exploration that got congressional inquiries tipped off. Homes in Irving, Texas and Reno, Nevada were wrongly foreclosed on for military members while also overcharging occurred, which Chase admitted to. These actions, and possibly the education loan policy, might violate the Servicemembers Civil Relief Act. The act limits the legal and financial actions for which servicemembers can be held responsible while they’re on active duty.

Citations

MSNBC

msnbc.msn.com/id/41415796/ns/business-personal_finance/

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