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HERA Settles Class Action Against Chase for Violating Fair Debt Collection Laws in Collecting Purchase Money Home Loans

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Oakland, California, May 26, 2017-   Judge Winifred Smith of the Alameda County Superior Court approved the settlement of Housing and Economic Rights Advocates’ (HERA) longstanding class action lawsuit against Chase Bank for deceptive practices in collecting purchase money mortgage loans.

HERA filed Banks v. JPMorgan Chase Bank (Case No. RG12614875) in January 2012 under California’s purchase money anti-deficiency law, challenging Chase’s attempts to collect mortgages used to purchase family homes. After four years of hotly contested litigation, including HERA’s amicus curiae participation in four related appellate cases, a settlement was reached.  HERA’s Banks case was designated the lead case that consolidated four related anti-deficiency class actions for joint settlement.

Judge Smith granted final settlement approval and entered final judgment on December 9, 2016. The settlement awards $500,000 in statutory damages to Chase borrowers from whom Chase attempted to collect loan balances on purchase money loans; a payment of $364 to each class member regardless of whether they made payments in response to Chase’s collection attempts. The settlement provides additional compensation to class members who made payments, prevents Chase from engaging in further collection efforts, and requires Chase to provide corrective credit reports to the major credit reporting bureaus stating that the borrowers do not owe anything on the loans.

HERA litigation attorneys Arthur Levy, Elizabeth Letcher, and Noah Zinner led the litigation effort, with co-counsel Kemnitzer, Barron & Krieg.

For more information please contact, Maeve Elise Brown Executive Director, Housing and Economic Rights Advocates, at melisebrown@heraca.org or (510) 271-8443.

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