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JP Morgan Chase settles class action lawsuit, new motion filed against CitiBank

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Recently, JP Morgan Chase officials relayed the company has settled a class action lawsuit filed against it for its violation of the Servicemembers' Civil Relief Act.

The 70-year-old act states that only a judge can authorize a foreclosure and the action can only take place after a hearing where military members are represented. The legislation was passed to help protect any active military members that suffer from financial hardships.

Captain Jonathon Rowles filed a lawsuit against the company, claiming it violated the act when it refused to reduce his interest rate to six percent by a date required under the SCRA. Furthermore, he stated the bank also tried to collect on account balances that did not exist. Rowles and others pointed to several other actions Chase Bank committed.

After a judge ruled in favor of the plaintiffs, Chase Bank reached a settlement for $48 million.

While the case highlighted the importance of observing existing acts and laws in place, CitiBank allegedly made similar motions that have resulted in its own professional liability lawsuit.

Texas Army National Guard Sergeant Jorge Rodriguez petitioned for a class action lawsuit after CitiBank allegedly illegally foreclosed his home in May 2006 when he was training in preparation of deploying for Iraq. The foreclosure occurred during a lock down period, when Rodriguez was unable to communicate with others.  

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