A class action lawsuit was filed against Wells Fargo for putting mortgages of some people into forbearance without taking their permission. Wells Fargo agreed to pay a settlement amount of $185 million to the eligible customers who were affected because of its activities.
According to Top Class Actions, Wells Fargo denies these allegations, but the evidence is strong enough to prove its fraud. The settlement became effective on February 15, 2025. Beneficiaries of a class action are those individuals who are affected by the Wells Fargo-serviced mortgage forbearance that was imposed during COVID-19 without taking their permission.
Wells Fargo Settlement Payments Have Begun
Back in 2020, at the time of COVID-19, many people were struggling financially. The mortgage lenders began offering the option of forbearance, which means people could reduce or pause their mortgage payments for a while. But the issue its Wells Fargo is accused of putting mortgages of some people into forbearance without taking their permission.
The customer said that they only click on the link of the information ad, and they never agreed to forbearance. But Wells Fargo moved forward without clear permission, which led to negative effects on their ability to get approved for the other loans, on credit reports, and consistent financial stress.
That is what results in the class action lawsuit against it. The proposed class action settlement amounts to a considerable $185 million that would be distributed to all the eligible customers who experienced the bank’s fraudulent practices.
Overview of Wells Fargo Settlement Payments
| Article on | Wells Fargo Settlement Payments Have Begun |
| Country | United States |
| Eligible claims | Unauthorized forbearances |
| Claim Deadline | January 10, 2025 |
| Settlement Amount | $185 million |
| Payment Starts | March 2025 |
| Affected Period | March 1, 2020 – December 31, 2021 |
| Category | Class Action |
| Official website | wellsfargocovidforbearancelitigation.com |
The Wells Fargo Settlement Details
Wells Fargo agreed to pay the total settlement amount, which is $185 million, and this amount was approved by the court in December 2024.
- The first $69 million is automatically distributed among all the eligible class members. Those who file a valid claim.
- A similar base amount will be given to each person, and co-borrowers will also obtain the $83.33 extra.
Some customers can file for the additional claims if the unauthorized forbearances caused them serious issues, like increased borrowing costs and refinancing opportunities.
- Class members who submit their claim for the extra amount had to do until January 10, 2025.
- The claims that you filed are still being revised, and checks will go out automatically once the process is completed.
Who is eligible for the Wells Fargo settlement payments?
Those individuals who fulfill any of the following conditions may be eligible to receive the settlement compensation.
- An individual who is affected by the Wells Fargo-serviced mortgage forbearance that was imposed without taking their permission between March 1, 2020, and December 31, 2021, during COVID-19.
- Those who did not provide perfect and knowledgeable consent to Wells Fargo for their loan to be put into forbearance might be eligible for compensation.
How can you claim your compensation from the settlement?
To receive the amount of settlement, make sure that you submit your claim before the deadline, which is January 10, 2025.
Payment Timeline for the Cash App Settlement
| Stage | Details |
| Deadline of Claim | January 10, 2025 |
| Effective date | February 15, 2025 |
| Payment starts automatically | March 2025 |
When are the Wells Fargo checks being sent?
Those who are eligible, then there is good news as the payment has already begun. The payment starts in March 2025. All the customers who filed a valid claim got their checks through mail, not email, and not through any online account. The Check will come in a plain envelope, so it is suggested not to throw away your mail without checking it carefully. Be careful if you are expecting a payment from the settlement.
How to know if you are getting a Wells Fargo check
If your mortgage went into forbearance, then you are eligible for the payment, but if you are unsure, then check these points:
- Did your mortgage go into forbearance by Wells Fargo during the time of COVID?
- Did you agree on that?
- Was there no paperwork or clear communication which showing that showed you accepted it?
If the answer to all these questions is Yes, then there are chances that you are part of the groups who are receiving payment of settlement. You may check your mortgage records for that period and contact the settlement administrator.
The Additional Wells Fargo settlement lawsuit
Yes, Wells Fargo has faced many legal challenges, as this is not the first time over its fraud banking activities.
- In 2024, a new class action lawsuit was filed against the bank for underpaying interest rates, through which the company earns hundreds of millions of dollars on customers’ accounts
- The company paid the settlement amount of $3.7 billion for charging the fees without disclosing it and for mismanaging accounts in the year 2022.
- And in the year 2020, the bank paid the amount of $3 billion to settle the federal claim that was put against it for opening accounts without the permission of the customer.
- In 2018, Wells Fargo faced lawsuits for charging extra mortgage fees and car insurance to its customers, which they did not even need.
Final Thoughts
Wells Fargo agreed to pay a settlement amount and committed to allocating this payment to all the eligible customers who submit a valid claim, as allegations were made against the company for putting mortgages of some people into forbearance without taking their permission.
The settlement aims to compensate all the eligible customers who file for a claim before the deadline. The deadline to file the claim form was January 10, 2025. The settlement amount will be automatically dispersed to the eligible customers through a check to their mailing address.
| Official Website | Click Here |
| Homepage | Moyle-Council.org |
