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NEWS | July 20, 2011

Proposed Class Action Settlement Agreement

All,

There is a pending federal class action against Countrywide Home Loans, Inc. for violating Servicemembers Civil Relief Act's (SCRA) six percent interest rate limitation. SCRA provides that any obligation or liability incurred by a military member before he or she enters active duty shall not bear an interest rate in excess of six percent per year. Countrywide allegedly violated SCRA by applying this interest rate limitation upon entry of active duty service, instead of upon receipt of active duty orders as required by SCRA.

To avoid the expenses of a trial, the parties have reached a settlement agreement. All class members received a notice of the settlement agreement. If you did not receive a notice, but you asked for, and received, a six percent interest rate reduction from Countrywide between March 25, 2001 and Jan. 31, 2011, please contact the Plaintiffs' attorney at (201) 225-9001 to determine whether you can qualify as a class member.

If the settlement agreement is approved by the court, all class members can expect to receive a settlement check for approximately $200-225 in mid-October 2011. Class members do not have to take any action to receive their settlement check.

A copy of the proposed federal settlement/class action documents will be made available here. You can also contact the 11th Wing Legal Office at (301) 981-2042.
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