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JPMorgan Chase to Reimburse 25,000 Homeowners Over Faulty Bankruptcies
US Department of Justice stated that JPMorgan Chase Bank N.A. will pay more than $50 million to more than 25,000 homeowners currently in bankruptcy as part of a settlement with the US government for having issued faulty bankruptcy documents.
WASHINGTON (Sputnik) — JPMorgan Chase Bank N.A. will pay more than $50 million to more than 25,000 homeowners currently in bankruptcy as part of a settlement with the US government for having issued faulty bankruptcy documents, a US Department of Justice statement said.
“The Department of Justice’s US Trustee Program (USTP) has entered into a national settlement agreement with JPMorgan Chase requiring Chase to pay more than $50 million… to over $25,000 homeowners,” the statement, issued on Tuesday, said.
“Chase acknowledges that it filed in bankruptcy courts across the country more than 50,000 payment change notices that were improperly signed,” the statement added.
The settlement stipulates Chase will provide $22.4 million in credits and second lien forgiveness to around 400 homeowners; $10.8 million to more than 12,000 homeowners in bankruptcy; $4.8 million to more than 18,000 homeowners who did not receive accurate and timely statements; $4.9 million to more than 8,000 homeowners whose payments Chase applied in an inconsistent manner; and $7.5 million to the American Bankruptcy Institute’s endowment for financial education and support for the Credit Abuse Resistance Education, according to the statement.
Additionally, the settlement stipulates that the Morvillo LLP attorney Amy Walsh will oversee Chase to verify it complies with the Justice Department settlement, the statement said.
The US Trustee Program is the component of the Justice Department that was established to oversee case administration and litigating to enforce the nation’s bankruptcy laws.
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