Banks in hot seat for illegal military foreclosures


Banks that were illegally foreclosing on homes owned by members of our military deployed overseas have been fully exposed in Washington. I’m happy to report there’s a renewed focus on this issue thanks to hearings before the House Committee on Veterans’ Affairs. Here’s a rundown of what’s been going on recently.

  • Chase was illegally foreclosing on homes owned by deployed military personnel. They have since done a complete about-face, offering $2.4 million restitution to affected families and making an ironclad pledge not to mess up anymore in this area. No more flouting the Service Members Civil Relief Act with exorbitant interest rates on mortgages for the military.
  • Wells Fargo has agreed to a $10 million settlement in a class action lawsuit for overcharging veterans who were refinancing their loans. The bank has agreed to pay refunds to some 60,000 veterans ripped off over the course of more than 6 years.
  • Morgan Stanley has reached a settlement with a soldier who was illegally foreclosed on while in Iraq.

This sad thing is that this could just be the tip of the iceberg. Many brave men and women in our military don’t know where to complain and just go off quietly if they’re wronged. If you think you’ve been wronged, here’s how I want you to handle it:

  • Call your Congressman or Congresswoman. They’re more in tune to this issue with all the focus in Washington.
  • If you’re deployed, there will be financial assistance personnel on your post. They can be your advocate in dealing with a bank.

It’s inexcusable that banks have abused the courageous, brave and patriotic men and women who wear our nation’s uniform. Never again should soldiers be abused by a bank while deployed overseas.

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