Chase Mortgage Prepayment Penalty Class Action Lawsuit (Insert OMG HERE)

I added this picture for the element of effect, imagine this, JPMorgan Chase "allegedly" delays crediting payments to maximize interest and increase their profits!! (If we conducted a poll, I don't think anyone would be surprised, lease of all me...You know Chase just makes money "appear" and then they use it how they see fit...and if they want you to "disappear" they can do that too...all the while increasing their bottom line...it's business after all...screw the rules, laws or regulations...CHASE is simply too big to fail...Right?!??!?!)

Chase Mortgage Prepayment Penalty Class Action Lawsuit
By Mike Holter

An angry homebuyer has filed a federal class action lawsuit against JPMorgan Chase Bank claiming it manipulates the order of processing and/or illegally delays crediting advance payments made on mortgage principals in order to maximize interest and increase its profits.

Lead Plaintiff Kevin Kratzke claims that “Chase, unlike other banks, holds advance principal payments in an undisclosed suspense account and purposefully delays crediting of such payments in order to maximize interest accrual on money that, under the terms of the loans, it has not earned.”

This violates the borrower’s right to prepay, as specifically outlined in their loan contracts, and amounts to illegal “pre-payment penalties,” Kratzke says. This policy has allowed Chase to reap “thousands and thousands of dollars” in illegally obtained gains from thousands of customers over the course of their 15- to 30-year loans.

"Chase's policy and practice shortchanges borrowers who may make modest advance principal payments on their mortgages, with the magnified effect of allowing Chase a windfall in collecting additional payments from continuously accruing interest. The net effect to impose a 'pre-payment' penalty in the form of accepting but holding advance principal payments [is] to increase the bank's bottom line and to breach its 'order of payment' crediting agreement found in the standard and conforming Freddie Mac/Fannie Mae mortgage/deed of trust loans secured in real estate," the class action lawsuit states.

The class action lawsuit further accuses Chase of purposefully programming its computers to delay crediting loan payments when the loan is current and no payment is due.

The Chase class action lawsuit is brought on behalf of all individuals and/or entities in the U.S. who obtained a Freddie Mac/Fannie Mae mortgage serviced by JPMorgan Chase; who were completely current and not in arrears of their mortgage/deed, and who voluntarily submitted advance principal payments toward their principal balance owed; and who were subject to JPMorgan Chase’s policy, pattern and practice of delayed crediting of such advanced principal payments.

If certified, the class action lawsuit will seek class damages for breach of contract and unfair and deceptive trade, an injunction, court costs, and more.

A copy of the Chase Bank Mortgage Prepayment Penalty Class Action Lawsuit can be read here.

The case is Kevin Kratzke v. JPMorgan Chase Bank, Case No. 12-cv-2094, U.S. District Court, Northern District of California.