NEW YORK — JPMorgan Chase agreed to settle a class-action lawsuit over financial protections for military customers for $60.4 million.
The company said Thursday it agreed to the settlement with U.S. Marine Corps Capt. Jonathon Rowles, a plaintiff in the case.
Under terms of the settlement, JPMorgan Chase will pay $12 million to plaintiffs in the case, pay another $27 million to its military customers, and set aside $15 million for additional damages on a case-by-case basis as determined by a special master. The bank will also pay $6.4 million to borrowers who may have been subjected to wrongful foreclosures.
The settlement must still be approved by the judge overseeing the case.
Rowles said Chase overcharged its military customers who took out mortgage loans with the bank, violating the protections they are given under the federal Servicemembers Civil Relief Act. A report by NBC News led to investigations by a Congressional committee and a federal prosecutor.
"We are sorry and regret the mistakes our firm made on mortgages for members of the military, and we'd like to thank Capt. and Mrs. Rowles for helping us address them," Frank Bisignano, JPMorgan Chase's chief administrative officer said in a statement.
The company said it has already paid $6 million to borrowers who were overcharged.
"My family and I thank Chase for resolving this matter," Rowles said in a statement. "It is our hope that this settlement will result in greater attention by the entire financial services industry to the nation's laws that protect our military families."
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