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Individuals who had a Wells Fargo-serviced mortgage on a California property, were current on their payments when they received a CARES Act forbearance on or after March 27, 2020, and whose account the company reported as “in forbearance” (or similar) to a credit bureau may be eligible to receive a cash payment from a class action settlement.
Wells Fargo Bank NA agreed to pay $56,850,000 to resolve a class action lawsuit alleging it did not comply with federal law when reporting the status of certain California mortgage accounts to credit reporting agencies during the COVID-19 pandemic.
Who are the class members?
Class members must meet all of the following criteria:
- They had a Wells Fargo-serviced mortgage on a property located in California.
- At the time they first contacted Wells Fargo about a CARES Act forbearance, their mortgage payment was between zero and 29 days past due (i.e., their account was “current”).
- They received a CARES Act forbearance on or after March 27, 2020.
- Wells Fargo reported their account as “in forbearance” (or something similar) to a consumer reporting agency.
How much is the Wells Fargo payout?
The total settlement fund is $56,850,000. Each eligible class member will receive an equal, pro rata share of the net settlement fund. The amount each person receives will depend on the number of class members and deductions for attorneys’ fees, litigation expenses, service awards and administration costs.
If funds remain after the first round of checks (e.g., some class members do not cash their checks), the settlement administrator will redistribute them to class members who cashed their checks unless the amount per person would be less than $5. The administrator will donate any remaining funds after this second distribution to Credit Builders Alliance, a nonprofit organization, as approved by the court.
No action needed to receive compensation
Eligible class members do not need to file a claim form or provide documentation. The settlement administrator will automatically mail their settlement check to the address on file.
Those who need to update their address can contact the settlement administrator.
Settlement administrator’s contact information: Wells Fargo CARES Act Mortgage Credit Reporting Class Action, c/o A.B. Data Ltd., P.O. Box 173008, Milwaukee, WI 53217, 1-877-307-7268, info@CaresActLitigation.com
$56.85 million settlement fund breakdown
The $56,850,000 settlement fund includes:
- Settlement administration costs: Estimated at $297,000
- Attorneys’ fees: Up to $17,055,000
- Attorneys’ expenses: Up to $190,000
- Service awards to class representatives and certain class members: Up to $98,000 total ($90,000 for the lead plaintiff, $2,000 each for two class members and $1,000 each for four class members)
- Payments to eligible class members: The remainder of the fund
Important dates
- Final approval hearing date: April 17, 2026
When is the Stoff v. Wells Fargo Bank NA payout date?
The settlement administrator will mail checks approximately 30 days after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Wells Fargo failed to comply with the CARES Act when reporting the status of mortgage accounts for California borrowers who received forbearances during the COVID-19 pandemic. Specifically, the lawsuit claimed Wells Fargo reported accounts as “in forbearance” (or similar) to consumer reporting agencies, which may have been inaccurate or incomplete under the law.
Wells Fargo denies any wrongdoing or liability but agreed to settle the case to avoid the cost, delay and uncertainty of further litigation.
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