Wells Fargo agreed to a $56.85 million class action lawsuit settlement to resolve claims it violated the federal Fair Credit Reporting Act (FCRA) by failing to report CARES Act forbearances accurately.
The Wells Fargo settlement benefits California mortgagors with a mortgage on property located in California whose accounts were “current,” who received a CARES Act forbearance on or after March 27, 2020, and whose accounts were reported as “in forbearance” (or something similar) by Wells Fargo to a consumer reporting agency.
Plaintiffs in the class action lawsuit accused Wells Fargo of violating the FCRA by reporting accounts with CARES Act forbearances as “in forbearance” instead of “current.” This allegedly inaccurate reporting harmed consumers’ credit scores.
Wells Fargo is a bank that offers a variety of financial services, including mortgages.
Wells Fargo has not admitted any wrongdoing but agreed to pay $56.85 million to resolve the FCRA class action lawsuit.
Under the terms of the Wells Fargo settlement, class members can receive an equal share of the net settlement fund. Exact payments will vary depending on the number of participating class members and the amount deducted for fees and expenses. Class members who receive a settlement check will have 90 days to cash it.
Any funds remaining in the settlement after the first round of payments may be used for a second round of payments if the remaining funds are large enough to warrant a second distribution.
If the remaining funds are not large enough to warrant a second round of payments, the funds will be donated to Credit Builders Alliance, a nonprofit organization that helps low- and moderate-income consumers build credit.
The deadline for exclusion and objection is March 25, 2026.
The final approval hearing for the settlement is scheduled for April 17, 2026.
No claim form is required to benefit from the Wells Fargo CARES Act class action settlement. Class members who do not exclude themselves will automatically receive settlement benefits.
