Mortgage servicer Village Capital & Investment LLC will pay more than 500,000 dollars to settle Department of Justice claims that it misapplied the SCRA's 6% interest rate cap and retaliated against active-duty borrowers, without admitting liability. The DOJ alleges that from March 1, 2020, until the settlement took effect, the company refused to cut rates to 6% on at least 41 servicemembers' mortgages, did not make reductions retroactive or lower monthly payments, and falsely reported some borrowers as delinquent to the Department of Veterans Affairs. It also allegedly misstated interest rates in form letters and used SCRA requests to accelerate principal payments. Under the agreement, the company must pay at least 425,000 dollars in compensation, a civil penalty of 79,380 dollars (the maximum for a first violation), and submit revised SCRA policies within 30 days.
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