There is a settlement with Chase Home Finance, LLC (“Chase”) in a class action lawsuit about whether it violated the Servicemembers Civil Relief Act (“SCRA”). There are two Settlement funds to pay all Class Member claims in this case: Fund I consists of approximately $20,400,000, and Fund II consists of $15,000,000.
The lawsuit alleges that Chase violated the SCRA by failing to provide certain protections to Servicemembers’ mortgage loans, home equity loans, and lines of credit while a Servicemember was on active duty and for some period following active duty.
Before any money is paid, the United States District Court for the District of South Carolina (the “Court”) must grant final approval of the settlement and any appeals that could be filed must be resolved.
Who Is Included in the Settlement Class?
The Settlement Class includes all borrowers with mortgage loans, or secured home equity loans or home equity lines of credit, that were active and serviced by EMC, Washington Mutual, and/or Chase as of January 1, 2005, and to whom Chase has sent an Actual Refund by September 11, 2011.
How Do You Receive a Payment from Fund I and
Request an Award from Fund II?
Upon Court approval of the Settlement, Class Members who did not properly opt out of the Settlement will automatically receive a payment from Fund I. Class Members were also eligible to submit a Special Claim Form for additional consequential damages incurred as compensation for emotional distress, pain and suffering, economic loss, and/or credit defamation. To make a claim for an award of compensation from Fund II, the Special Claim Form must have been postmarked or received by the Settlement Administrator by February 13, 2012.
The amount a Class Member may be awarded, if any, from Fund II will be determined by a Special Master appointed by the Court. The Special Master’s decision shall be final as to who is entitled to such an award as well as the amount of any award from Fund II. In making that decision, the Special Master will be guided by his experience as a former federal judge, the facts submitted in the Special Claim Form, and any accompanying material you provided in support.
What Are Your Other Options?
The deadline to exclude yourself (“opt out”) from the Settlement, object to the Settlement, or submit a Notice of Intent to Appear and Speak at the Fairness Hearing was October 3, 2011. If you received a Notice Packet postmarked on November 18, 2011, you have until January 3, 2012 to opt out, object, or request a hearing. Please see the Class Notice for additional detail.
The Court held a Fairness Hearing on November 15, 2011. The purpose of that hearing was to decide whether to approve the Settlement based on notices sent to approximately 15,000 Class Members. The Court determined that, subject to any objections by Class Members who were recently mailed a Notice Packet and given until January 3, 2012 to opt-out, object, or request a hearing, the proposed settlement is fair, reasonable and adequate. No objections have been made to the settlement as of October 3, 2011.
The Class Notice contains additional information and important details regarding this Settlement. Please review it carefully.
This website will be updated as additional information becomes available. Please check back periodically for important updates regarding the Settlement.