VA Home Loan Servicer Village Capital to Pay Over $500,000 for Violating Servicemembers' Rights Under the SCRA
WASHINGTON — The Justice Department announced on October 19 that Village Capital & Investment LLC, a servicer of home loans guaranteed by the Department of Veterans Affairs, will pay over $500,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). Under the settlement, Village Capital will pay at least $425,000 to affected servicemembers and a $79,380 civil penalty — the maximum penalty for a first violation of the SCRA. The department alleged the company failed to properly apply SCRA interest rate benefits, which cap interest at 6 percent on qualifying debts, to at least 41 servicemembers' mortgages, and retaliated against servicemembers who requested the benefits. The agreement also requires the company to revise its policies and procedures to prevent future violations and to provide SCRA training to its employees. Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division said lenders that refuse to honor SCRA benefits, or retaliate against those who assert their rights, violate federal law and undermine the trust military families place in financial institutions. First Assistant U.S. Attorney Sigal Chattah for the District of Nevada said the company breached servicemembers' trust by failing to apply the rate cap correctly and misrepresenting mortgage terms, and that such practices will be met with swift accountability.
Published by GSM · USA (original Chinese edition)
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