Wells Fargo to pay $56.85 million settlement. Are you eligible? – USA Today
Wells Fargo has agreed to pay $56.85 million to settle a class‑action lawsuit that claims some customers’ credit scores were harmed during the COVID‑19 pandemic.
The bank did not admit wrongdoing but agreed to the settlement after a lawsuit alleged it violated the Fair Credit Reporting Act by improperly reporting mortgage forbearances, which allows borrowers to pause or reduce payments during financial difficulty, according to legal news site Top Class Actions.
The lawsuit alleged that during the early months of the pandemic, Wells Fargo placed some borrowers into mortgage forbearance after they expressed financial hardship or potential hardships. However, the lawsuit charged that Wells Fargo violated the Coronavirus Aid, Relief, and Economic Security (CARES) Act by inaccurately reporting account information to credit bureaus, potentially harming consumers’ credit scores.
A judge in San Diego, California, is scheduled to decide whether to approve the settlement on April 17. If approved, affected customers could receive payments from the settlement fund. More details about eligibility and potential compensation are available at CaresActLitigation.com.
USA TODAY contacted Wells Fargo regarding the lawsuit.
Only people who own or have owned property in California with a Wells Fargo mortgage will be eligible to participate in the lawsuit, according to the settlement website.
To be eligible, they must have received a CARES Act forbearance on or after March 27, 2020, according to the settlement’s website. Their accounts must have been “current” and reported as “in forbearance,” or something similar, by Wells Fargo to a consumer reporting agency.
In March 2020, Congress enacted the CARES Act to provide financial support to individuals affected financially by the pandemic.
Under the act, lenders, such as Wells Fargo, were required to report up-to-date accounts placed under “forbearance” due to pandemic-related financial hardship as “current,” meaning the loan would show as if it were up to date even if the borrower had requested a pause on payments.
The act was intended to assist borrowers during this period and to ensure that their credit scores would not be adversely affected.
The lawsuit alleges that Wells Fargo violated this act by misreporting accounts placed under “forbearance” during the pandemic to credit bureaus.
Consumers who qualify do not need to apply to be included in the settlement and will receive an automatic payment from the settlement fund after the final hearing, if the settlement is approved.
Consumers who are eligible but object to receiving the payment may opt out of receiving a payment from the settlement fund, according to the settlement website. All opposed must file a written objection to the settlement with the Superior Court of California in San Diego, on or before the objection deadline, March 25, 2026.
Those who would like to speak at the final court hearing must file a written Notice of Intention to Appear, which must be filed and postmarked on or before the objection deadline.
In total, Wells Fargo has agreed to pay $56.85 million.
A court will decide whether or not to approve that settlement at the final court hearing on April 17.
Julia Gomez is a Trending reporter for USA TODAY and covers popular toys, scientific studies, natural disasters, holidays, and trending news. Connect with her on LinkedIn, X, Instagram, and TikTok: @juliamariegz, or email her at jgomez@gannett.com.
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This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
The bank did not admit wrongdoing but agreed to the settlement after a lawsuit alleged it violated the Fair Credit Reporting Act by improperly reporting mortgage forbearances, which allows borrowers to pause or reduce payments during financial difficulty, according to legal news site Top Class Actions.
The lawsuit alleged that during the early months of the pandemic, Wells Fargo placed some borrowers into mortgage forbearance after they expressed financial hardship or potential hardships. However, the lawsuit charged that Wells Fargo violated the Coronavirus Aid, Relief, and Economic Security (CARES) Act by inaccurately reporting account information to credit bureaus, potentially harming consumers’ credit scores.
A judge in San Diego, California, is scheduled to decide whether to approve the settlement on April 17. If approved, affected customers could receive payments from the settlement fund. More details about eligibility and potential compensation are available at CaresActLitigation.com.
USA TODAY contacted Wells Fargo regarding the lawsuit.
Only people who own or have owned property in California with a Wells Fargo mortgage will be eligible to participate in the lawsuit, according to the settlement website.
To be eligible, they must have received a CARES Act forbearance on or after March 27, 2020, according to the settlement’s website. Their accounts must have been “current” and reported as “in forbearance,” or something similar, by Wells Fargo to a consumer reporting agency.
In March 2020, Congress enacted the CARES Act to provide financial support to individuals affected financially by the pandemic.
Under the act, lenders, such as Wells Fargo, were required to report up-to-date accounts placed under “forbearance” due to pandemic-related financial hardship as “current,” meaning the loan would show as if it were up to date even if the borrower had requested a pause on payments.
The act was intended to assist borrowers during this period and to ensure that their credit scores would not be adversely affected.
The lawsuit alleges that Wells Fargo violated this act by misreporting accounts placed under “forbearance” during the pandemic to credit bureaus.
Consumers who qualify do not need to apply to be included in the settlement and will receive an automatic payment from the settlement fund after the final hearing, if the settlement is approved.
Consumers who are eligible but object to receiving the payment may opt out of receiving a payment from the settlement fund, according to the settlement website. All opposed must file a written objection to the settlement with the Superior Court of California in San Diego, on or before the objection deadline, March 25, 2026.
Those who would like to speak at the final court hearing must file a written Notice of Intention to Appear, which must be filed and postmarked on or before the objection deadline.
In total, Wells Fargo has agreed to pay $56.85 million.
A court will decide whether or not to approve that settlement at the final court hearing on April 17.
Julia Gomez is a Trending reporter for USA TODAY and covers popular toys, scientific studies, natural disasters, holidays, and trending news. Connect with her on LinkedIn, X, Instagram, and TikTok: @juliamariegz, or email her at jgomez@gannett.com.
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
