Wells Fargo To Pay $56.85 Million Settlement

Wells Fargo agreed to pay $56.85 million to settle a class‑action lawsuit over how it reported certain mortgage accounts during COVID‑era CARES Act forbearances, without admitting wrongdoing.

What the case is about

• The suit (Stoff v. Wells Fargo Bank, N.A.) alleged Wells Fargo violated the Fair Credit Reporting Act (FCRA) and CARES Act requirements by reporting certain mortgage accounts as “in forbearance” instead of “current” after granting COVID‑related payment relief.

• Plaintiffs claimed this misreporting during and after March 2020 harmed borrowers’ credit scores and, in some cases, their ability to obtain new credit.

• Wells Fargo denies liability but agreed to a $56.85 million common fund to resolve the litigation.

Who is in the settlement class

• Geographic scope: California mortgagors with Wells Fargo‑serviced mortgages on California properties.

• Account status: Borrowers whose mortgage accounts were current when they received a CARES Act forbearance on or after March 27, 2020.

• Reporting conduct: Those whose accounts were reported to a consumer reporting agency as “in forbearance” (or similar) by Wells Fargo.

The settlement website (CARESActLitigation.com) is identified in court‑focused coverage as the official portal for information.

Payout structure and key dates

• Total fund: $56,850,000.

• Distribution method: Net fund (after attorneys’ fees, expenses, service awards, and administration costs) will be distributed pro rata in equal shares to all participating class members.

• No claim form: Several notices state class members do not need to submit claim forms; eligible borrowers are expected to receive automatic one‑time cash payments if the settlement receives final approval, but must ensure their mailing address is current with the administrator.

• Fees/expenses (illustrative from settlement summaries):

  • Administration costs estimated around $297,000.​

  • Attorneys’ fees requested up to about $17.055 million.​

  • Attorneys’ expenses up to about $190,000.​

  • Service awards up to about $98,000 total to lead and certain class representatives.​

Timeline

• Preliminary approval: January 9, 2026.​

• Objection / address‑update deadline (for class members): March 25, 2026, according to settlement‑notice sources.

• Final approval hearing: Scheduled for April 17, 2026; payments will issue only after final approval and resolution of any appeals.

Are you eligible?

You’re likely in the class if all apply:

• You had a Wells Fargo‑serviced mortgage on a California property.

• Your mortgage was current when you obtained a CARES Act forbearance on or after March 27, 2020.

• Wells Fargo reported your account to a credit bureau as “in forbearance” (or similar) during this period.