Wells Fargo $15M COVID Forbearance Class Action Settlement

If you had a mortgage serviced by Wells Fargo that was placed into a COVID mortgage forbearance between March 1, 2020, and December 31, 2021, and were a debtor or the co-borrower of a debtor in a Chapter 13 bankruptcy case on the date that the mortgage was placed into forbearance, you may be eligible to claim an award from a class action settlement.

Wells Fargo has agreed to pay $15,000,000 to settle a class action lawsuit for allegedly placing customers into forbearance without informed consent and filing notices of forbearance in Chapter 13 bankruptcy cases without explicit requests from the customers.

Who Can Claim an Award?

To be eligible for the settlement, you must have had a mortgage serviced by Wells Fargo that was placed into a COVID mortgage forbearance between March 1, 2020, and December 31, 2021. Additionally, you must have been a debtor or the co-borrower of a debtor in a Chapter 13 bankruptcy case on the date that the mortgage was placed into forbearance.

The Settlement Class is divided into two subclasses:

• Subclass 1: Members who received an At-Issue Forbearance due to a Proactive Wells Fargo Business Decision or Servicing Error, and for whom Wells Fargo filed a Notice of Forbearance in their Chapter 13 bankruptcy case.
• Subclass 2: Members who are not part of Subclass 1.

What Benefits Does the Settlement Provide?

Under the settlement, Wells Fargo will establish a Settlement Fund of $15,000,000 to provide benefits to Class Members.

• Subclass 1 Members: Will receive $2,500 per mortgage account that received an At-Issue Forbearance.
• Subclass 2 Members: Will receive $500 per mortgage account that received an At-Issue Forbearance.

Class Members who feel that being placed into forbearance caused them to suffer damages in excess of the automatic payment can submit a claim for additional compensation from the Claims Fund. The Claims Fund will be maintained by the Claims Administrator and funded with the remaining amounts in the Settlement Fund after accounting for the payments to Subclass 1 and Subclass 2 Members, attorney fees, service awards, and administrative costs. If the Claims Fund does not contain sufficient funds to pay all valid claims, the claim amounts will be reduced and paid on a pro-rata basis.

Is Proof Required to Claim the Reward?

Yes, claimants need to provide proof to claim additional compensation. The documentation must support the claim for damages, such as receipts, cancelled checks, court records, attorney invoices, trustee payment records, and other relevant documents.

• Receipts
• Cancelled checks/bank statements
• Court records
• Attorney invoices
• Trustee payment records

How to Claim Your Award

To claim your award, you can file a claim online through the online claim form or by mailing a physical copy of the Claim Form to the Claims Administrator at:

Harlow, et al. v. Wells Fargo Bank

P.O. Box 5130

Portland, OR 97208-5130

If you submit your claim electronically, it must be submitted no later than January 7, 2025. If you mail the Claim Form, it must be postmarked no later than January 7, 2025.

$15,000,000 Settlement Fund Breakdown

The settlement amount of $15,000,000 will be used to provide payments to Class Members, cover attorney fees, service awards, and administrative costs. The breakdown is as follows:

• Payments to Subclass 1 Members: $2,500 per mortgage account
• Payments to Subclass 2 Members: $500 per mortgage account
• Attorney fees: Up to 33% of the Settlement Fund
• Service awards: Up to $12,500 for each Class Representative
• Administrative costs: Claims Administrator’s costs and expenses

Important Dates

• Deadline to Exclude Yourself from the Settlement: September 9, 2024
• Final Approval Hearing: October 11, 2024
• Deadline to Submit a Claim: January 7, 2025

When will Awards be Paid?

Awards will be paid after the District Court approves the settlement and any appeals are resolved in favor of the settlement.

What Happens Next?

The next steps include the Final Approval Hearing on October 11, 2024, where the District Court will decide whether to approve the settlement. If approved, payments will be distributed to eligible Class Members.