Wells Fargo has agreed to pay $185 million to settle a class action lawsuit that accused the bank of placing customers’ mortgages into forbearance without their consent during the COVID-19 pandemic.
The settlement aims to compensate individuals who were affected by this practice between March 1, 2020, and December 31, 2021.
What Happened?
During the early stages of the COVID-19 pandemic, many homeowners faced financial difficulties.
The U.S. government introduced the CARES Act, which allowed homeowners to request a temporary pause on their mortgage payments, known as forbearance.
However, Wells Fargo allegedly placed some customers into forbearance without their explicit request or informed consent.
This action led to unintended consequences, such as negative impacts on credit scores and difficulties in securing new loans.Lawyer Monthlywellsfargocovidforbearancelitigation.com
The lawsuit claimed that Wells Fargo’s actions violated consumer protection laws by not obtaining proper consent before initiating forbearance.
While the bank did not admit to any wrongdoing, it agreed to the settlement to resolve the claims and avoid prolonged litigation.
WHO IS ELIGIBLE?
The settlement covers individuals who meet the following criteria:Top Class Actions
- Mortgage Serviced by Wells Fargo: Your mortgage must have been serviced by Wells Fargo.
- Placed into Forbearance Without Consent: Your mortgage was placed into forbearance between March 1, 2020, and December 31, 2021, without your explicit request or informed consent.Sirfal+1Claim Depot+1
- Not Involved in Chapter 13 Bankruptcy: You were not a debtor or co-borrower in a Chapter 13 bankruptcy case at the time your mortgage was placed into forbearance.
If you meet these criteria, you may be eligible for compensation under the settlement.
What Compensation Is Available?
The $185 million settlement fund will be distributed as follows:
- Automatic Payments: The first $69 million will be equally distributed among eligible class members who do not exclude themselves from the settlement.
- Co-Borrower Payments: Each co-borrower on a mortgage that received forbearance will receive an additional $83.33.
- Supplemental Payments: Class members who experienced additional harm, such as delayed refinancing, increased borrowing costs, or denied credit applications, can file a claim for further compensation.
Payments will be made automatically to eligible individuals who do not opt out of the settlement. Those who wish to seek additional compensation must submit a valid claim form by the specified deadline.
Important Dates
- Final Approval Hearing: December 10, 2024
- Claim Filing Deadline: January 10, 2025
- Automatic Payment Distribution: March 17, 2025, for eligible class members who did not opt out
How to File a Claim?
If you believe you are eligible for additional compensation, you can file a claim by:
- Visiting the Official Settlement Website: Go to the Wells Fargo COVID Forbearance Settlement Litigation website.
- Completing the Claim Form: Fill out the online claim form with accurate information.
- Submitting Supporting Documentation: Provide any necessary documents that support your claim, such as denial letters or refinancing records.
- Submitting the Claim: Submit the completed claim form and documentation by the deadline.
Ensure that all information is accurate and submitted on time to avoid delays in processing your claim.
Additional Information
- No Action Required for Automatic Payments: If you are eligible for automatic payments and do not opt out, you do not need to take any further action.
- Opting Out: If you choose to exclude yourself from the settlement, you will not receive any benefits but will retain the right to file your lawsuit.
- Legal Representation: The settlement is being administered by the Settlement Administrator, and class counsel are overseeing the process to ensure fairness.
Conclusion
The Wells Fargo $185 million settlement provides an opportunity for individuals who were affected by unauthorized mortgage forbearances during the COVID-19 pandemic to receive compensation.
If you believe you are eligible, it’s important to review the settlement details and take the necessary steps to file a claim by the specified deadlines. For more information and to submit a claim, visit the official settlement website.
This article has been carefully fact-checked by our editorial team to ensure accuracy and eliminate any misleading information. We are committed to maintaining the highest standards of integrity in our content.
