Banks Accused Of Overcharging Military Veterans

[L.A. BRONCOS FAN]

JPMorgan, Bank of America, Wells Fargo Accused Of Overcharging Military Veterans

In what is only the latest instance of questionable mortgage practices coming to light, a new lawsuit claims that 13 banks and mortgage companies -- including Bank of America, Wells Fargo, JPMorgan and PNC Bank -- charged hidden, illegal fees to military veterans trying to refinance their homes.

The lenders, unable to charge certain fees under U.S. Department of Veterans Affairs rules, simply increased another set of fees (http://www.marketwatch.com/story/whistleblower-lawsuit-takes-on-banks-nationwide-that-cheated-taxpayers-veterans-out-of-hundreds-of-millions-of-dollars-2011-10-04) without making it clear to veterans that they were doing so, the suit alleges.

The result was hundreds of thousands of cases where veterans trying to refinance their homes ended up paying between $300 and $1,000 more than they were supposed to, according to the suit.

The veterans' loans are some of many of misleading or fraudulent loans that banks made during the housing bubble that are only recently coming to light.

Nearly 30,000 such cases were uncovered this past spring alone (http://latimesblogs.latimes.com/money_co/2011/09/reports-of-boom-era-mortgage-fraud-on-rise.html), a majority of them involving real estate deals made in 2007 or before.

Many of the banks named in the new hidden-fees suit -- which was filed in 2006, but whose details were public this week -- have been accused in the past of taking advantage of military servicemembers.

In February, Wells Fargo agreed to refund some $10 million in fees to veterans after a similar lawsuit alleged that the bank charged improperly high fees (http://professional.wsj.com/article/SB10001424052748704900004576152342239174936.html?m g=reno-wsj) to veterans undertaking the refinancing process.

Around the same time, JPMorgan acknowledged that it had overcharged thousands of active military personnel on mortgages (http://articles.cnn.com/2011-02-10/politics/congress.military.mortgages_1_military-orders-active-duty-service-member-returns?_s=PM:POLITICS) and improperly foreclosed on the homes of nearly 20 enlisted men and women.

Veterans face a particularly high number of challenges in the current economic climate. The unemployment rate for veterans (http://articles.latimes.com/2011/jul/11/business/la-fi-veteranjobs-20110711) is well above that of the overall population, in part because many members of the military often return to the civilian workforce without a college degree, and find it difficult to land steady employment.

Homelessness rates for veterans are also higher than average (http://www.usatoday.com/news/nation/2011-02-10-1Ahomelessvets10_ST_N.htm), a problem that has been exacerbated by the foreclosure crisis (http://www.nytimes.com/2008/11/18/us/18vets.html) and by predatory lenders who approach veterans with disadvantageous refinancing deals (http://www.alternet.org/story/151866/how_predatory_lenders_are_leaving_veterans_homeles s,_broke_and_in_debt?page=1). Current and former military personnel are typically a high-risk group for harmful payday loans (http://www.dailyfinance.com/2011/04/12/predatory-payday-lenders-put-military-families-in-the-crosshairs/), as they often draw low salaries and have few readily available sources of help when they get into debt.

[epicSocialism4tw]

Nobody's into your communist crap.

[L.A. BRONCOS FAN]

Nobody's into your communist crap.

Another fake patriot showing how he "supports the troops." tsk tsk

And, according to your logic, exposing malfeasance by banks makes one a "communist?"

You are seriously deranged.

[L.A. BRONCOS FAN]

Let the record show EpicPinhead stands with these banks (who, BTW, admitted their wrongdoing) in giving the finger to veterans.

[cutthemdown]

No I am all for banks being held accountable if they break the law. Investigate and punish, but it has nothing to do with the wall street protests. They just want all the debt forgiven and that is wrong also.

[cutthemdown]

a lot of the protestors just seem like the want a socialist revolution where everyone gets to have money and be happy, guess what that is pure fantasy.

[L.A. BRONCOS FAN]

a lot of the protestors just seem like the want a socialist revolution where everyone gets to have money and be happy, guess what that is pure fantasy.

Straw man.

All they want is a level playing field whereas people like you want an NFL game with no rules and no refs.

[L.A. BRONCOS FAN]

No I am all for banks being held accountable if they break the law. Investigate and punish, but it has nothing to do with the wall street protests.

Where was there any mention of the Wall Street protests?

You're off topic.

[cutthemdown]

It's wrong to overcharge anyone especially vets. I for one have moved my money to a small community bank that is in my city. I don't have a lot anyways so not like it makes a difference to Chase who I said **** off to. I worked in banking for 10 yrs LABF no one has to tell me they are evil. I saw it all. I worked the mainframe update and had privy to everything, i printed the payroll checks and knew what everyone made etc etc. I also saw bank officers get interest free loans.

This is how they did it. It's so simple its sick. They would just let the officers have overdrawn accounts, up to crazy numbers like 200 grand, 30 grand, etc etc depending on the officer. Right before our bank went under and we got bought up, that money started coming back in because it was highly unethically for them to do it.

Not sure illegal, but the shareholders would probably had something to say about it. And we were a tiny small bank, I can only imagine what goes on in the banks with real money. I also saw them make loans they knew would end up in default. Not sure why they did it but they made bad loan one after another until the bank was so far under it couldnt be saved. I think the bank President made money of the sale, and wanted to have to sell the bank.

They also pay the employees at banks crap really. The tellers, IT pros etc dont make crap. Only the big whigs get to make any money. Them and the loan agent lackeys who are lucky enough to get the purse strings.

these stories about the serviceman getting ripped off dont bother me though. They caught them and will probably have to pay a bunch of money back. What bothers me is what we don't know about.

I'm actually for the little guy a lot more then you think. I just don't fall for thinking the dems are fall the little guy. Neither party is so I vote for the one I think wont raise my taxes or be a p***Y in foreign policy.

Hell for last 4 yrs Obama been the biggest beneficary of wall street money. Only now is it starting to shift to Romney.

Where the money goes is the winner of the whole shabang IMO. If Romney gets that big money he probably wins.

Sorry I mentioned the protests, such a huge topic right now I just felt it was relevant to say you can agree banks are evil, need to be policed, and still not agree all debt should be forgiven and some of the other crazy demands of the protesters.

Party on!

Oh and Bob Leatherbarrow, Ernie Watts band, has been to a couple of my gigs now. And Doug Webb, LA pro, gets gigs from Celine Dieon etc etc may sit in with us soon if he can swing it. Also we may be playing the NAMM show hilton party, you should put away your political glasses and come check it out. I know you go to the Namm show brother!

[cutthemdown]

Straw man.

All they want is a level playing field whereas people like you want an NFL game with no rules and no refs.

Whats not level about the playing field? I'm not super successful but that is more because I like to play music and it's hard to get rich like that. I really believe though anyone who wants an education can get one, wants a job can find one. I know its tough out there but its not because the rich people are trying to screw everyone. They have stopped spending as well and that is really what drives the economy. Hell most of the loss in housing is in the upper tier markets. Rich people in calif that had mansions worth 30 million are now going for 15 million. I know they can live but the point is that type of thing even makes rich people say holy cow i better not by that jet.

I'm just not convinced taxing them more and letting Obama spend it is going to help. Obviously I am in the 99% so if it goes that way, like most things, my life won't be changed by it too much. I just can't get over them saying its millionaires they want, but then admitting 70% of the new tax revenue comes from taxpayers making 200 grand, couples making 250 grand. That is a ton of money to make, would be nice, but still those people already paying 30-40% in tax when its all said and done. I mean the state takes its bite also etc etc.

I don't see any repub running for the white house that makes me confident to say this guy will make things better thought. Even Ron Paul, although i like some of his views, to be honest scares me a bit. Wondering what would happen really to my life if all the stuff he wants to try went down. But Obama? he's a friggin disaster and you know it. Basically he's continued most of the stuff you hated Bush for, and then added most of the stuff we hated Carter for. He has to go, even for a flip flopping repub light like Romney.

[ant1999e]

Another fake patriot showing how he "supports the troops." tsk tsk
And, according to your logic, exposing malfeasance by banks makes one a "communist?"

You are seriously deranged.

This coming from you???

[TheDave]

As a side note... Banks better watch their ass. They keep this crap up and both parties might have no other choice than to regulate them to the point of being utility companies.

[elsid13]

As a side note... Banks better watch their ass. They keep this crap up and both parties might have no other choice than to regulate them to the point of being utility companies.

At this point, that might not be such a bad thing. It could be argued that between interstate mergers and co mingling of operations (consumer banking, investment banking, etc) that current laws and regulation are to lax and the consumers are getting screwed.

[Tombstone RJ]

JPMorgan, Bank of America, Wells Fargo Accused Of Overcharging Military Veterans

In what is only the latest instance of questionable mortgage practices coming to light, a new lawsuit claims that 13 banks and mortgage companies -- including Bank of America, Wells Fargo, JPMorgan and PNC Bank -- charged hidden, illegal fees to military veterans trying to refinance their homes.

The lenders, unable to charge certain fees under U.S. Department of Veterans Affairs rules, simply increased another set of fees (http://www.marketwatch.com/story/whistleblower-lawsuit-takes-on-banks-nationwide-that-cheated-taxpayers-veterans-out-of-hundreds-of-millions-of-dollars-2011-10-04) without making it clear to veterans that they were doing so, the suit alleges.

The result was hundreds of thousands of cases where veterans trying to refinance their homes ended up paying between $300 and $1,000 more than they were supposed to, according to the suit.

The veterans' loans are some of many of misleading or fraudulent loans that banks made during the housing bubble that are only recently coming to light.

Nearly 30,000 such cases were uncovered this past spring alone (http://latimesblogs.latimes.com/money_co/2011/09/reports-of-boom-era-mortgage-fraud-on-rise.html), a majority of them involving real estate deals made in 2007 or before.

Many of the banks named in the new hidden-fees suit -- which was filed in 2006, but whose details were public this week -- have been accused in the past of taking advantage of military servicemembers.

In February, Wells Fargo agreed to refund some $10 million in fees to veterans after a similar lawsuit alleged that the bank charged improperly high fees (http://professional.wsj.com/article/SB10001424052748704900004576152342239174936.html?m g=reno-wsj) to veterans undertaking the refinancing process.

Around the same time, JPMorgan acknowledged that it had overcharged thousands of active military personnel on mortgages (http://articles.cnn.com/2011-02-10/politics/congress.military.mortgages_1_military-orders-active-duty-service-member-returns?_s=PM:POLITICS) and improperly foreclosed on the homes of nearly 20 enlisted men and women.

Veterans face a particularly high number of challenges in the current economic climate. The unemployment rate for veterans (http://articles.latimes.com/2011/jul/11/business/la-fi-veteranjobs-20110711) is well above that of the overall population, in part because many members of the military often return to the civilian workforce without a college degree, and find it difficult to land steady employment.

Homelessness rates for veterans are also higher than average (http://www.usatoday.com/news/nation/2011-02-10-1Ahomelessvets10_ST_N.htm), a problem that has been exacerbated by the foreclosure crisis (http://www.nytimes.com/2008/11/18/us/18vets.html) and by predatory lenders who approach veterans with disadvantageous refinancing deals (http://www.alternet.org/story/151866/how_predatory_lenders_are_leaving_veterans_homeles s,_broke_and_in_debt?page=1). Current and former military personnel are typically a high-risk group for harmful payday loans (http://www.dailyfinance.com/2011/04/12/predatory-payday-lenders-put-military-families-in-the-crosshairs/), as they often draw low salaries and have few readily available sources of help when they get into debt.

well obviously these banks are hurting financially right? All that bailout $ is simply not enough, after all they are showing record profits and they have to pay those darn wall street execs a boatload of money just to prove they don't suck.

it's really not a big deal. If laundering drug cartel money doesn't get them in trouble with the feds, what's a little up charging to vets?

What DC needs to do is keep loaning more money to these banks so that these banks can loan the money right back to the American people at a higher interest rate. That will show them!

They can't screw with the USA!!

[baja]

No I am all for banks being held accountable if they break the law. Investigate and punish, but it has nothing to do with the wall street protests. They just want all the debt forgiven and that is wrong also.

Take a look at the 100 Trilion derivative robbery perorated on the citizens of the world by the 6 global mafia banks. They stole all the money - start there.

You have no idea what has transpired.

[baja]

As a side note... Banks better watch their ass. They keep this crap up and both parties might have no other choice than to regulate them to the point of being utility companies.

Aren't you the deregulation is good guy?

[baja]

At this point, that might not be such a bad thing. It could be argued that between interstate mergers and co mingling of operations (consumer banking, investment banking, etc) that current laws and regulation are to lax and the consumers are getting screwed.

Wow another establishment defender wakes up. good boy el Sid

[baja]

well obviously these banks are hurting financially right? All that bailout $ is simply not enough, after all they are showing record profits and they have to pay those darn wall street execs a boatload of money just to prove they don't suck.

it's really not a big deal. If laundering drug cartel money doesn't get them in trouble with the feds, what's a little up charging to vets?

What DC needs to do is keep loaning more money to these banks so that these banks can loan the money right back to the American people at a higher interest rate. That will show them!

They can't screw with the USA!!

The banks own the USA, well the federal government anyway.

[Rohirrim]

No I am all for banks being held accountable if they break the law. Investigate and punish, but it has nothing to do with the wall street protests. They just want all the debt forgiven and that is wrong also.

Why? Didn't we just bail out all the banks from their debts?

[TheDave]

At this point, that might not be such a bad thing. It could be argued that between interstate mergers and co mingling of operations (consumer banking, investment banking, etc) that current laws and regulation are to lax and the consumers are getting screwed.

If they did something froma global perspective (BASEL IV)... maybe.

I just think the system is too complex for the current group of politicians we have (us and europe). Right now the game is based on leverage and speculation and mathmatical models we couldn't hope to understand. Until the spred between leverage limits and capital witholdings tightens up these speculative bubbles will continue. The 21st century problem is the speed of expansion and contraction. When bubbles burst every decade or 2 who cares.. now the cycle feels like it has shortened to 5-7 years.


Aren't you the deregulation is good guy?

Financial deregulation?

No, thats not me

[L.A. BRONCOS FAN]

Whats not level about the playing field?

If you see all those corporations sitting on trillions in cash surpluses during the worst economic crisis since the great depression and still have to ask this question, then you are probably beyond hope.

[Rohirrim]

If they did something froma global perspective (BASEL IV)... maybe.

I just think the system is too complex for the current group of politicians we have (us and europe). Right now the game is based on leverage and speculation and mathmatical models we couldn't hope to understand. Until the spred between leverage limits and capital witholdings tightens up these speculative bubbles will continue. The 21st century problem is the speed of expansion and contraction. When bubbles burst every decade or 2 who cares.. now the cycle feels like it has shortened to 5-7 years.




Financial deregulation?

No, thats not me

Hell, transactions now are on fully automatic, a thousand per nanosecond, and none of them have anything to do with capitalizing business and industry, which is the only reason a society should even support a market. All the movement now is just a computerized currency casino and stock manipulation video game.