Written by Lynn Goya,

There are a lot of injustices in the world, but one of the worst has to be that a soldier who is fighting for country is scammed at home by the corporate elite.  What was once anecdotal was put on the record when bank executives testified in front of congress in February. 

Banks overcharged civilians and service members, foreclosed on homes that were sometimes paid off; charged fees without merit; and refused to follow what few rules are in place to protect the little guy..  Soldiers could be court-martialed for less.

Stephanie Mudick, head of consumer practices for JP Morgan Chase – which, by the way received $25 billion in 2008 in bailout funds from the Bush administration – admitted in her prepared testimony that despite the protections of the Servicemembers Civil Relief Act (SCRA), her bank routinely charged above-allowed rates to deployed soldiers

Upon investigation, Chase found that up to 4,000 military personnel in active service may have been overcharged for their mortgages loans while 14 homes were improperly foreclosed upon.  During testimony, however, it bumped the numbers up to 4,500 and 18, respectively.  Congress is concerned that this it the tip of the iceberg and that the practice may be routine in other banks, as well.

Holly Petraeus, a U.S. federal government military liaison setting up a service members affairs office in the Consumer Financial Protection Bureau, said that bad credit ratings could affect military security clearances as well, possibly causing some to lose their clearance entirely due to perceived financial problems.

Marine Capt. Jonathan Rowles and his wife, Julia who was home caring for two premature babies, described how Chase debt collectors pressured them for years while the couple vainly tried to get relief from excess charges.  The couple said that collection agencies would call Julia at home and harass Capt. Rowles while he was in combat.  Rowles recalled calling his wife in the middle of the night only to spend precious moments trying to figure out how to combat the bank.  “You spend your time trying to not worry about home, but it’s still in the back of your mind when you’re fighting,” Rowles testified.

Mudick responded by saying, “We clearly made mistakes. The customer service that we provided to him and to his wife was unacceptable, and the fact that this was a servicemember makes our mistakes all the more inexcusable. We deeply regret any hardship we caused the Rowles family.”

The ranking Democrat on the House Veterans Affairs committee, Bob Filner, was not impressed, speculating that the pressure put on military families may play a role in the mental health crisis among U.S. soldiers. “You broke the law. How are we going to hold you accountable?” Filner stormed. “Everything is impersonal. Nobody is ever responsible and yet these people’s lives are turned upside down. You can’t just apologize…and then, this is over.”

Attorney Richard Harpootlian, who represents Rowles’ and other service members who are suing Chase over mortgage fraud, said that violating SCRA  should be elevated to a felony for certain breaches so that those who violate the law could face incarceration to encourage the financial industry to think twice. “Put somebody in jail,” he said.