Network News

X My Profile
View More Activity





Posted at 7:35 PM ET, 02/ 1/2011

Banks reminded on military personnel protections

By Brady Dennis

The recently-tapped head of military issues for the new Consumer Financial Protection Bureau, sent a letter to the nation's 25 largest banks Tuesday urging them to comply "with important legal protections for military personnel."

Holly Petraeus, wife of Gen. David H. Petraeus, the top American military commander in Afghanistan, pointed the firms to the Servicemembers Civil Relief Act, which limits the interest rates that banks can charge those in the military and prevents them from foreclosing on homes of active duty service members without a judge's expressed authorization and a formal hearing where the homeowner is represented.

The letter comes on the heels of reports that some banks have violated those provisions, including an acknowledgment last month by J.P. Morgan Chase that the firm had foreclosed on more than a dozen active-service families and overcharged thousands of others. The bank said it would refund a total of about $2 million to overcharged families.

"In view of recent experience, I would urge you to take steps to educate all your employees about the financial protections that the SCRA provides and to review your loan files to ensure compliance," Petraeus wrote in Tuesday's letter to banking executives.

She also wrote separately to J.P. Morgan Chase chief executive Jamie Dimon, thanking him for "reaching out to me personally" and adding, as she had to other executives, "I appreciate your assistance in ensuring that your bank does not overlook its obligations -- legal and otherwise -- to your military customers."

Elizabeth Warren, the Harvard law professor helping to set up the new consumer watchdog, appointed Petraeus to the post early last month. The two women recently traveled to Lackland Air Force Base in Texas to meet with military families about financial readiness issues.

By Brady Dennis  | February 1, 2011; 7:35 PM ET
 
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   Del.icio.us   StumbleUpon   Technorati   Google Buzz   Previous: Where did newly departed members of Congress find jobs?
Next: Economic agenda: Wednesday, Feb. 2, 2011

Comments

Congrats, Ladies! Keep up the good work. PLEASE work on the Credit Score problem. More transparancy needed to the consumer. Too many profit co.s getting moneys for fixing scores. Pls. work on Credit card interest rate problem too. thanx. Can you get Consumer Ed. as a requirement in our high schools at grade 12. Critical. I am a former Home Ec. Tchr. rsvp.

Posted by: technicalbooks | February 3, 2011 2:58 AM | Report abuse

Post a Comment

We encourage users to analyze, comment on and even challenge washingtonpost.com's articles, blogs, reviews and multimedia features.

User reviews and comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions.




characters remaining

 
 
RSS Feed
Subscribe to The Post

© 2011 The Washington Post Company