Wells Fargo agrees to $56.85 million settlement — check if you qualify for a payout
Wells Fargo reached a $56.85 million settlement over claims it improperly reported mortgage forbearance accounts during the COVID-19 pandemic, potentially harming customers' credit scores.Summary
Wells Fargo has agreed to a $56.85 million settlement to resolve a class-action lawsuit alleging that the bank damaged customers’ credit scores during the COVID-19 pandemic. The lawsuit centered on how Wells Fargo reported mortgage forbearance accounts to credit bureaus, claiming the bank failed to comply with the CARES Act, which required lenders to report these accounts as current. Instead, some accounts were allegedly inaccurately reported, negatively impacting borrowers’ credit standing.
Eligibility for the settlement is limited to California property owners who had a Wells Fargo mortgage and received CARES Act forbearance on or after March 27, 2020, with their accounts reported as “in forbearance.” Qualifying consumers will automatically receive payments if the settlement receives final approval from a California judge on April 17, 2024; no claim form is necessary.
While Wells Fargo has not admitted any wrongdoing, the settlement aims to resolve the claims and provide relief to affected homeowners. Those wishing to object or opt out must file a written objection by March 25, 2026.
(Source：The Economic Times)