Wells Fargo agreed to a $56.85 million class-action settlement resolving allegations that it violated the Fair Credit Reporting Act and CARES Act. The Wells Fargo $56.85 M Settlement was reached by improperly reporting pandemic-related mortgage forbearances as “in forbearance” rather than “current”.
Settlement & Eligibility Facts
- Core violation: Misreporting accounts of borrowers who entered COVID-19 mortgage forbearance while remaining current on terms, harming credit scores.
- Eligibility requirement: Borrowers who own or owned property in California with a Wells Fargo mortgage and received a CARES Act forbearance on or after March 27, 2020.
- Action required: The opt-out and claim deadline passed on March 25, 2026; eligible members who did not opt out remain in the automatic distribution class.
Timeline & Next Steps
- Final approval hearing: Held on April 17, 2026.
- Payout window: Checks typically distribute within 60 to 180 days post-court approval.
- Inquiries: Managed via Cares Act Litigation or administrator contact at 877-307-7268.