Wells Fargo $185 Million COVID Forbearance 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, you may be eligible to claim compensation from a class action settlement.

Wells Fargo has agreed to pay $185 million to settle a class action lawsuit for allegedly placing customers into mortgage forbearance without obtaining adequate informed consent.

Who are the class members?

The class members eligible for this settlement include individuals in the United States who:

• Had a mortgage serviced by Wells Fargo placed into a COVID forbearance without adequate informed consent between March 1, 2020, and December 31, 2021.
• Were not a debtor or co-borrower in a Chapter 13 bankruptcy case on the date the mortgage was placed into forbearance.

Additionally, there is a Stoff Subclass, which consists of persons who are both Class Members in this Settlement Class and who are also class members in Stoff v. Wells Fargo Bank, N.A.

How much can class members get?

The settlement provides for a $185 million fund to compensate affected class members. The first $69 million will be distributed equally as Automatic Payments to Class Members who do not exclude themselves from the Settlement.

Each co-borrower on a mortgage that received an At-Issue Forbearance will receive an additional $83.33 automatically.

Class Members can also claim additional compensation for damages caused by the At-Issue Forbearance, such as:

• Delayed refinancing
• Increased refinancing costs
• Denial or reduction of personal credit lines
• Inability to access existing lines of credit
• Lost income and/or lost business opportunity
• Any other damages caused by an At-Issue Forbearance.

The Settlement Administrator will determine the amounts of payments for individualized harms identified by the Class Members.

• Automatic Payment: A pro rata share of the $69 million based on the number of mortgages placed into forbearance.
• Co-Borrower Payment: An additional $83.33 for each co-borrower.

How to claim an award

To claim an award, class members can file a claim online or by mailing a completed Claim Form to the Settlement Administrator at:

Wells Fargo Forbearance Litigation

Settlement Administrator

P.O. Box 2794

Portland, OR 97208-2794

Ensure that all claims are submitted online or postmarked by January 10, 2025.

Claim instructions

1. Obtain your Unique ID from the Email or Mailed Notice.
2. Complete the Claim Form with all required information.
3. Attach supporting documentation for any claimed damages.
4. Submit your claim online or mail it to the address provided above.

How is the $185 million distributed?

The settlement fund of $185,000,000 will cover:

• Automatic Payments and Co-Borrower Payments to Class Members
• Supplemental Payments for additional damages claimed
• Attorneys' fees and expenses up to $46,250,000
• Service Awards to Class Representatives
• Costs and expenses of the Settlement Administrator

Important dates

• Deadline to File a Claim: January 10, 2025
• Final Approval Hearing: December 10, 2024

When is the Wells Fargo COVID Forbearance Settlement payout date?

The payout date will be determined after the Final Approval Hearing on December 10, 2024. Class Members should monitor the official settlement website for updates.

Why is there a class action settlement?

The lawsuit alleges that Wells Fargo placed customers into mortgage forbearance without obtaining informed consent, which may have led to financial harm such as denied credit applications or increased borrowing costs. The settlement was reached to avoid the costs and uncertainty of further litigation.