What the Chase class action lawsuit covers

Chase (JPMorgan Chase Bank) faced multiple class action lawsuits over how it handled loan modification requests during and after the 2008 financial crisis. The main settlements involved claims that Chase denied modifications to borrowers who should have may have access to, lost or mishandled paperwork, failed to review applications properly, or charged fees for modifications that should have been free. If you applied for a loan modification with Chase and were denied, charged a fee, or had your process mishandled between roughly 2009 and 2012, you may have been part of one of these settlements.

The settlements did not require Chase to admit wrongdoing. Instead, Chase agreed to pay money into a fund to compensate borrowers who met specific criteria. The amount you could receive depended on which settlement applied to your situation and what documents you could provide showing your loss.

Key Takeaways

  • Chase settled multiple loan modification lawsuits by paying into compensation funds for borrowers denied modifications or charged improper fees between 2009 and 2012.
  • To receive money from a settlement, you had to submit a claim form with documents proving you applied for a modification and suffered a specific loss—denial, fees, or foreclosure.
  • Most settlement claim important date have already passed, but you should check the status of any claim you filed or determine whether you missed the window.
  • If you did not file a claim before the important date, you generally cannot recover money from that settlement, though some settlements allowed late claims under limited circumstances.
  • Settlement money came from Chase, not from a government program, and the amount per claimant varied based on how many valid claims were submitted.

The main Chase loan modification settlements and their important date

Chase faced settlements in multiple cases. The largest involved the National Mortgage Settlement in 2012, which included Chase along with other major banks. That settlement created a fund for borrowers who were denied loan modifications or had modifications cancelled improperly. A separate settlement addressed borrowers who paid fees for loan modifications. Another covered borrowers whose applications were lost or not reviewed.

Each settlement had its own claim important date, usually 18 months to 3 years after the settlement was approved by the court. Most of these important date passed between 2013 and 2015. If you received a notice about a Chase settlement in the mail, it included the claim important date on that notice. If you did not receive notice, you may not have been in the settlement class, or the notice may have been sent to an old address.

You can search for settled class actions involving Chase by visiting the settlement administrator websites or by searching the Federal Trade Commission's website for "Chase loan modification settlement." The settlement name, claim important date, and claim status should be listed there.

What documents you needed to prove your claim

To receive money from a Chase settlement, you had to submit a claim form that included specific documents. The exact requirements depended on which settlement you were claiming under, but generally you needed to show: a signed loan process or modification request you sent to Chase; proof that Chase denied your request or charged you a fee; and evidence of the loss you suffered (such as a foreclosure notice, proof of fees paid, or a statement showing the loan was not modified).

If you applied for a modification but never received a written denial, you could sometimes claim based on the fact that Chase never responded or lost your paperwork. You would need to provide evidence that you submitted the process—a copy of what you sent, a certified mail receipt, a letter from Chase acknowledging receipt, or testimony from a witness who was present when you submitted it.

Many borrowers did not have all these documents. If you were missing some, the settlement administrator could sometimes work with what you had, but missing key documents often resulted in a denied claim. This is why many people who were harmed by Chase's practices did not receive settlement money—they could not prove the loss in the way the settlement required.

How much money settlements paid out

The amount each claimant received varied widely depending on the settlement and the number of valid claims submitted. In the National Mortgage Settlement, borrowers who were denied modifications typically received between $1,500 and $125,000, depending on factors like how much equity they had lost, whether they went through foreclosure, and how long their process was delayed. Borrowers who paid improper fees received the amount of the fee plus interest, sometimes doubled.

The total settlement fund was fixed—Chase agreed to pay a set amount, usually in the hundreds of millions of dollars. That money was divided among all valid claimants. If 100,000 people filed valid claims and the fund was $300 million, the average payout would be $3,000 per person, though individual amounts varied based on the type of loss.

Settlement money came directly from Chase, not from a government program or insurance fund. Once the claim important date passed and all valid claims were paid, the settlement was closed. Any unclaimed money typically went to a cy pres award—a donation to a nonprofit related to housing or consumer protection—rather than back to Chase.

What to do if you think you were part of a Chase settlement

First, determine which settlement you might have been in. Write down the approximate dates you applied for a modification with Chase and what happened—were you denied, charged a fee, or did your process go missing? Then search online for "Chase loan modification settlement" plus the year you applied. Look for the settlement name and the claims administrator's website.

Once you find the settlement, check whether the claim important date has passed. If it has not, you can still file a claim by submitting the claim form and supporting documents to the administrator before the important date. If the important date has passed, check the settlement website to see whether late claims are being accepted. Some settlements allow late claims if you did not receive notice, but this is rare and requires proof that you never got the settlement notice.

If you filed a claim before the important date and never heard back, contact the settlement administrator directly. Provide your claim number (if you have it) and ask for the status. The administrator can tell you whether your claim was approved, denied, or is still pending. If it was denied, ask for the reason and whether you can submit additional documents.

Why some claims were denied and what that means now

Settlement claims were denied for several reasons: missing documents, explore outside the settlement time period, not meeting the definition of the settlement class, or Chase records showing the borrower did not actually explore for a modification. If your claim was denied, the settlement administrator sent you a letter explaining why. That letter should have included instructions for appealing the denial, though most appeals were also unsuccessful.

If your claim was denied and the appeal important date has passed, you generally cannot recover money from that settlement. However, you may have other options. If Chase's conduct violated state or federal law, you could consult with a consumer attorney about whether you have a separate claim. Some state attorneys general have pursued their own actions against Chase for loan modification abuses, and those settlements may still be open.

The fact that a settlement claim was denied does not mean you were not harmed by Chase's practices. It means you could not prove the harm in the way the settlement required, or you were not part of the settlement class. Those are different things.

How lawsuit loans relate to Chase settlements

A lawsuit loan (also called litigation funding or a settlement advance) is money a third-party company lends you based on your expected settlement payout. If you had a pending Chase settlement claim and needed cash before the settlement was paid, you could borrow against your expected settlement money from a lawsuit loan company. The company would charge you interest and fees, and would be repaid from your settlement check when it arrived.

Lawsuit loans made sense in some situations—if you were facing foreclosure and a settlement check was coming in three months, borrowing against it could keep you in your home. But they were expensive. Interest rates and fees could total 30 to 50 percent of the loan amount, meaning if you borrowed $5,000, you might owe back $7,500 or more. Most Chase settlement claims were resolved within 12 to 24 months, so the loan period was relatively short, but the cost was still significant.

If you took out a lawsuit loan against a Chase settlement, the loan company would have required you to sign an agreement allowing them to collect directly from your settlement check. Make sure you understand the exact amount you owe before accepting any settlement money, because the loan company gets paid first.

Frequently Asked Questions

Can I still file a claim for a Chase loan modification settlement?

Most Chase settlement claim important date have passed. Check the settlement administrator's website for the specific settlement you believe you were in—it will show the important date and whether late claims are being accepted. If the important date has passed and late claims are not being accepted, you cannot file a new claim under that settlement.

What if I filed a claim but never received a settlement check?

Contact the settlement administrator with your claim number and ask for the status. They can tell you whether your claim was approved, denied, or is still being processed. If it was approved but you never received the check, the administrator can issue a replacement or investigate whether the check was lost in the mail.

How do I know if I was in the Chase settlement class?

You were in the class if you applied for a loan modification with Chase between roughly 2009 and 2012 and were denied, charged a fee, or had your process mishandled. The settlement notice you received (if you got one) would have stated the exact dates and criteria. If you did not receive notice, search the settlement administrator's website or call them to ask whether you were in the class.

If my claim was denied, can I appeal or file a new claim?

The appeal important date for most Chase settlements has passed. If you received a denial letter, it included instructions for appealing within a specific timeframe—usually 30 to 60 days. If that important date has passed, you cannot appeal that claim. You cannot file a new claim for the same settlement, but you may be able to pursue a separate legal claim against Chase if you believe they violated consumer protection laws.

What happens to settlement money that was not claimed?

Unclaimed settlement money does not go back to Chase. Instead, it typically goes to a cy pres award—a donation to a nonprofit organization focused on housing, consumer protection, or financial literacy. The settlement agreement specified which organization would receive the unclaimed funds.