Wells Fargo $1.3M Mortgage Forbearance Class Action Settlement

Individuals who had a Wells Fargo home mortgage account with a West Virginia mailing or property address, participated in the COVID forbearance program and received a letter between March and December 2020 about missed forbearance payments may be eligible to receive up to $400 from a class action settlement. The settlement involves approximately 2,010 West Virginia mortgage accounts.

Wells Fargo Bank NA, doing business as Wells Fargo Home Mortgage, and HSBC Bank USA agreed to pay $1.3 million to settle a class action lawsuit. The class action alleged the companies improperly sent certain borrowers letters during the COVID forbearance period regarding how they would handle missed mortgage payments at the end of the loan term.

Who qualifies for a Wells Fargo class action payment?

Class members must meet the following criteria:

• They are or were borrowers on Wells Fargo home mortgage accounts.
• They have or had a West Virginia mailing or property address as recorded in Wells Fargo’s system of record.
• They participated in the Wells Fargo COVID forbearance program
• They received a letter from Wells Fargo between March and December 2020 stating what would happen with missed COVID forbearance payments at the end of the loan period.

Class members will receive one payment per account.

Additional details for joint accounts:

• Coborrowers on the same account will share a single payment.
• If one coborrower on an account opts out of the settlement, the settlement administrator will exclude both coborrowers, and neither will receive a payment.

How much is the settlement payout?

Cash payment: Each eligible account will receive a cash payment of up to $400 per account. The final payment amount will depend on the number of valid claims and deductions for administrative costs, attorneys’ fees and a service award for the plaintiff.

No claim form required

Class members do not need to file a claim to receive payment. Those who need to update their address must email the settlement administrator with their full name, previous address and current address.

Settlement administrator's email address: info@KirkpatrickWVHomeMortgageSettlement.com

Payout options

All eligible class members will receive a paper check mailed to the most recent address on file with Wells Fargo or the updated address they provide.

$1.3 million Wells Fargo settlement fund

The $1,300,000 settlement fund will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: $433,333
• Attorneys’ expenses: Up to $10,500
• Service award to class representative: $15,000
• Payments to eligible class members: Remaining settlement funds

Important dates

• Opt-out deadline: Dec. 22, 2025
• Fairness hearing: Feb. 20, 2026

When is the Wells Fargo mortgage forbearance settlement payout date?

The settlement administrator will mail payments to class members approximately 67 days after the court grants final approval of the settlement.

Why did this class action settlement happen?

The Wells Fargo class action lawsuit alleged that Wells Fargo and HSBC improperly sent letters to borrowers in West Virginia who participated in the COVID forbearance program, explaining how they would handle missed payments at the end of the loan term. The plaintiff claimed these letters may have caused confusion or harm to borrowers.

Wells Fargo and HSBC Bank deny any wrongdoing but agreed to settle to avoid the expense and uncertainties of further litigation and a possible trial.

Sources

1. Class notice
2. Official settlement website FAQ page
3. Settlement agreement.pdf)