Posted in Uncategorized

Banks Flout Laws Protecting Troops From Foreclosure

Justice League

Newser:

(NEWSER) – Deployed service members are supposed to be protected by federal laws from repossession and foreclosure. But thanks to mandatory arbitration—a clause in a contract’s small print that waives one’s right to court intervention—lenders are circumventing the rules, placing the homes and cars of US troops in jeopardy, the New York Times reports. And while banks argue it’s a more cost-efficient way to take care of problems and stave off frivolous lawsuits, military members say it violates theServicemembers Civil Relief Act, designed to protect troops from the repo man and foreclosure when they’re overseas. Arbitration often favors the lenders.

A bipartisan bill was on the table last year to help military members escape the arbitration black hole, but it was met by resistance from the US Chamber of Commerce and SIFMA, a group made up of lenders who often tout their support of the military…

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