Wells Fargo Settlement: What California Mortgage Holders Need to Know
California homeowners with a Wells Fargo mortgage may be entitled to a portion of a significant $56.85 million settlement. This class action lawsuit addresses allegations that Wells Fargo inaccurately reported CARES Act forbearances to consumer reporting agencies, potentially impacting credit scores.
The lawsuit claims that Wells Fargo violated the federal Fair Credit Reporting Act (FCRA) by reporting accounts in forbearance as “in forbearance” rather than “current.” This misreporting could have negatively affected consumers’ creditworthiness.
Who is Eligible for the Wells Fargo Settlement?
To qualify for a share of the settlement, you must meet the following criteria:
- You are a California resident.
- You have a mortgage on a property located in California serviced by Wells Fargo.
- Your account was “current” at the time you received a CARES Act forbearance.
- You received a CARES Act forbearance on or after March 27, 2020.
- Wells Fargo reported your account as “in forbearance” (or similar) to a consumer reporting agency.
Wells Fargo, a major financial institution offering a wide range of services including mortgages, has agreed to the settlement without admitting any wrongdoing.
How Does the Settlement Work?
Class members who meet the eligibility requirements will receive an equal share of the net settlement fund. The exact amount each individual receives will depend on the total number of valid claims filed and the deductions for legal fees and administrative expenses.
If you receive a settlement check, you have 90 days to cash it. Any remaining funds after the initial distribution may be used for a second round of payments, if sufficient funds are available. If a second distribution isn’t feasible, the remaining funds will be donated to Credit Builders Alliance, a non-profit dedicated to helping consumers build credit.
Important Dates to Remember
- Exclusion/Objection Deadline: March 25, 2026
- Final Approval Hearing: April 17, 2026
No claim form is required! If you meet the eligibility criteria and do not exclude yourself from the settlement, you will automatically receive your share of the funds.
Where to Find More Information
For more details about the Stoff v. Wells Fargo Bank N.A. settlement (Case No. 37-2020-00020808-CU-BT-CTL, Superior Court of California, County of San Diego), you can visit:
You can also contact the settlement administrator at:
Wells Fargo CARES Act Mortgage Credit Reporting Class Action
c/o A.B. Data Ltd.
P.O. Box 173008
Milwaukee, WI 53217
[email protected]
877-307-7268
Disclaimer: This information is for general knowledge only and does not constitute legal advice. Please consult with a legal professional for advice tailored to your specific situation.
