By Peter S. Gaytan

 

Earlier this year, it was discovered that JP Morgan Chase, one of American’s largest banks, had been overcharging thousands of servicemembers on their home loan interest. Even worse, the bank had improperly foreclosed on the homes of at least 14 military families. The nation was outraged. The bank admitted its error, paid $2 million in refunds, and promised that those whose homes were improperly foreclosed had gotten or would soon get their houses back. JP Morgan Chase encourages servicemembers who believe that they are eligible for refunds and did not receive one, to contact the bank to discuss their accounts.

 

But while our men and women are risking their lives to protect our freedom, they need full assurance that their homes and families are also safe. The current Servicemembers Civil Relief Act (SCRA) is designed to provide these protections, by postponing or suspending certain financial obligations by deployed servicemembers and protecting their homeowner mortgages. Under the law, active-duty troops are generally given lower interest rates and their homes are protected from foreclosure.

 

Representative Bill Johnson has introduced an amendment to SCRA that would strengthen the legislation. It would require that large lending institutions which are subject to SCRA designate an employee to be responsible for the institution’s compliance with the act, as well as distribute information about SCRA to servicemembers.

Another bill, introduced by Representative Bob Filner, would extend SCRA financial protections against property seizure or foreclosure to surviving spouses of servicemembers who suffer a service-connected death.

 

As Jeff Steele, assistant director of the American Legion’s Legislative Division, said, “It is a national security imperative that servicemembers be able to fight the nation’s wars without having to worry about their rights being trampled at home.”

 

To read the proposed legislation, go to: http://www.govtrack.us/congress/billtext.xpd?bill=h112-2329

 

http://www.govtrack.us/congress/billtext.xpd?bill=h112-1263

 

Peter S. Gaytan is the author of For Service To Your Country – Updated Edition: The Essential Guide to Getting the Veterans’ Benefits You’ve Earned (Citadel, 2011), available from Amazon, Barnes and Noble, and other booksellers. He has served as an advocate in securing and protecting the earned benefits of America’s veterans for more than a decade. Gaytan is the Executive Director of the American Legion, the largest veterans service organization in America.