Military Foreclosure Fraud | Jonathon Rowles v. Chase Home Finance, LLC – Complaint, TRO

Here are the court files from the story yesterday on Military “Deadbeats” | JP Morgan Chase Overcharged Troops on Mortgages and Illegally Foreclosed on Military Families…

I find it hard to believe that these types of “errors” only applied to military families with even greater protection from foreclosure than the average American citizen.

Anyway, some excerpts from the complaint…

COMPLAINT

FIRST CAUSE OF ACTION
(Violation of 50 U.S.C. App. 527(b)(2)—Failure to properly implement
the protection of the SCRA)

32. Plaintiff Rowles was called to active duty in the United States Marine Corps on
January 22, 2006.  Plaintiff Rowles promptly notified Defendant Chase of his calling to active
duty pursuant to the requirements set forth within Section 527(b)(1) of the SCRA.

33. Section 527(b)(2) of the SCRA requires creditors to apply the 6% interest rate
limitation to an eligible servicemember’s debt “effective as of the date on which the
servicemember is called to military service.”

34.  Despite receiving prompt notification of Plaintiff Rowles’ calling to  active duty,
Defendant Chase failed to apply the statutorily-mandated 6%  rate until Rowles’ August 2006
payment. Upon information and belief, Chase has invoked the same unlawful procedure for all
members of Plaintiff Class. Defendant Chase’s violation of the SCRA has caused the Plaintiff
and the Plaintiff Class actual damages, including consequential damages.

34. Chase is therefore liable to Plaintiff  and Plaintiff Class for damages including
actual and punitive damages, prejudgment interest, costs and attorneys fees.

SECOND CAUSE OF ACTION
(Violation of 50 U.S.C. App. 527—Failure to maintain the 6% rate during the
servicemember’s active duty status)

35. Between December 2007 and March 2010, Chase required Rowles to re-verify his
active duty status in writing on six separate occasions despite having written notice of the
duration of his active duty term.  And no fewer than four times per year between August of 2006
and the date of this filing, Chase essentially required Rowles to re-apply for SCRA protections
by forcing him to call various company customer service representatives after being verbally
informed or receiving documentation that the interest rate on the loan was going to be adjusted
above 6%.

36. Section 527(b)(2) of the SCRA requires creditors to apply the interest rate
limitation to an eligible servicemember’s debt “effective as of the date on which the
servicemember is called to military service.”  This action is to  be taken “[U]pon receipt of
written notice and a copy of orders calling a servicemember to military service.”

37. Section 527(a)(1) requires the creditor to maintain the 6% interest rate limitation
“during the period of military service.”  Defendant Chase’s violation of this statutory mandate
has caused the Plaintiff and the Plaintiff class actual damages, including consequential damages.
38. Chase is therefore liable to Plaintiff  and Plaintiff Class for damages including
actual and punitive damages, prejudgment interest, costs and attorneys fees.

THIRD CAUSE OF ACTION
(Violation of 50 U.S.C. App. 518—Employment of collection methods
unlawful under the SCRA)

39. After unlawfully adjusting the interest rate on the loan above 6% and determining
that Rowles had a past-due balance, Chase began to employ collection methods which included
repeated phone calls and correspondence from Chase debt collection departments in various
locations.  These calls often came at a rate of three per day and included calls to his workplace
and his mother – who lives at a different address – as well as calls made to his residence after
midnight.  In telephone conversations, voicemails  and correspondence during this time, Chase
representatives repeatedly threatened to report Rowles to the credit bureaus and to initiate
foreclosure proceedings on the house in Castle Rock, CO.

40.  This pattern of conduct by Chase  caused Rowles to spend considerable time
communicating with Chase via telephone, email and written correspondence and to take leave
from his unit to travel from South Carolina to Colorado in order to preserve protections to which
he was already entitled and to prevent the carrying out by Chase of threatened actions which are
unlawful under the SCRA.

41. Section 518 (1) of the SCRA makes it unlawful for a creditor to determine that a
servicemember’s invocation of protection under the act renders  him “unable to pay the civil
obligation or liability in accordance with its terms.”

42. Section 518(3) of the SCRA makes it unlawful for a servicemember’s invocation
of protection under the act to  serve as the basis for  a creditor to provide “an adverse report
relating to creditworthiness of  the servicemember by or to a person engaged in the practice of
assembling or evaluating consumer credit information.”

43.   Defendant Chase’s willful breach of these provisions of the SCRA has caused the
Plaintiff and the Plaintiff Class actual damages, including consequential damages.
44. Chase is therefore liable to Plaintiff  and Plaintiff Class for damages including
actual damages, prejudgment interest, costs and attorneys fees.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff, on behalf of himself and the Plaintiff Class, prays for relief and
judgment as follows:

a. Determining that this action is a proper  class action, and certifying Plaintiff as
Lead Plaintiff and as Class Representative  under Rule 23 of the Federal Rules of Civil
Procedure;

b. Awarding compensatory and consequential damages in favor of Plaintiff and all
other Class Members against Defendant for all  damages sustained as a result of Defendant’s
wrongdoing in an amount to be proven at trial;

c. Awarding Plaintiff and Class Members their costs and disbursements of this suit,
including reasonable attorneys’ fees, accountants’ fees and experts’ fees;

d. Awarding Plaintiff an incentive payment for serving as Class Plaintiff; and

e. Awarding such other and further relief as may be just and proper.

Attached below is the FULL COMPLAINT, PETITION FOR TRO, CHASE HOME FINANCE, LLC’S  RESPONSE TO PETITION FOR TEMPORARY RESTRAINING ORDER, and REPLY MEMORANDUM IN SUPPORT  OF MOTION FOR PRELIMINARY INJUNCTION

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4closureFraud.org

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Jonathon Rowles v. Chase Home Finance, LLC Complaint

Jonathon Rowles v. Chase Home Finance, LLC Petition for TRO

Jonathon Rowles v. Chase Home Finance, LLC Response to Petition for TRO

Jonathon Rowles v. Chase Home Finance, LLC Reply Memo in Support of Petition for TRO

Comments
4 Responses to “Military Foreclosure Fraud | Jonathon Rowles v. Chase Home Finance, LLC – Complaint, TRO”
  1. And all the other thousand of families that are none military but also overcharged and wrongly foreclose?

  2. Gabe says:

    Refunding the money is petty cash for Chase. I would make Chase pay each of those families 50 million dollars and full educational funds for their children. Those children of our troops went through hell when they had to leave the only home they knew when Chase foreclosed on them and kicked them out of the homes.
    Chase should be punished to the full extend of the law.
    But this will never happen. Just like in WWII nobody punished Chase for collaborating with the nazis.

    That is why I posted the following two videos so people can see Chase was not punished in 1945 and it will not be helld accountable in 2011 either. Chase is above the law.

  3. Gabe says:

    Here is part one about Chase collaboration with Nazis.

  4. Gabe says:

    Chase is a teflon. Will never be punished or helld accountable just like when Chase was involved with the nazis. Don’t believe me believe your own ears and eyes. This is part 2 you can watch pert 1 also from the History channel on you tube

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