Wells Fargo agreed to a $56.85 million class action settlement to resolve claims it violated the federal Fair Credit Reporting Act (FCRA) by inaccurately reporting California mortgage borrowers’ accounts as “in forbearance” rather than “current” during the COVID-19 pandemic, harming their credit scores.
⚠️ Status Update (March 31, 2026): The supplemental damage claim deadline was March 25, 2026 (now passed). The Final Approval Hearing is scheduled for April 17, 2026. Class members who did not exclude themselves will receive their automatic base payment without needing to file a claim form. Payouts are expected to begin in late summer 2026.
Wells Fargo $56.85M Mortgage Forbearance Settlement — Overview
| Settlement Fund | $56,850,000 |
| Defendant | Wells Fargo Bank, N.A. |
| Case Name | Stoff v. Wells Fargo Bank N.A., Case No. 37-2020-00020808-CU-BT-CTL |
| Court | Superior Court of California, County of San Diego |
| Supplemental Claim Deadline | March 25, 2026 ⚠️ (passed) |
| Opt-back-in Deadline | April 14, 2026 |
| Final Approval Hearing | April 17, 2026 |
| Claim Form Required? | No — automatic base payment for eligible class members |
| Base Automatic Payment | Estimated $165–$250 |
| Supplemental Claim (documented harm) | Up to $5,000+ |
| Expected Payout | Late Summer 2026 |
| Settlement Website | caresactlitigation.com |
Who Is Eligible?
You are a class member if you are a California resident who:
- Had a residential mortgage loan serviced by Wells Fargo on a California property
- Had a “current” account status
- Received a CARES Act forbearance on or after March 27, 2020
- Had your account reported as “in forbearance” (rather than “current”) by Wells Fargo to a consumer reporting agency
What Is the Settlement Paying?
- Automatic base payment: Estimated $165–$250 per eligible class member (no claim form required)
- Supplemental documented harm claim: Up to $5,000+ for class members who experienced significant credit damage (e.g., denied loan applications, higher interest rates paid) — this required filing by March 25, 2026
- Class members who receive a settlement check will have 90 days to cash it
Settlement Timeline
- ✅ Supplemental claim deadline: March 25, 2026 (passed)
- Opt-back-in deadline: April 14, 2026
- Final Approval Hearing: April 17, 2026
- Expected payout start: Late Summer 2026 (August–September)
Other Wells Fargo Settlements Active in 2026
This is one of several Wells Fargo settlements currently in the payout phase. Other ongoing Wells Fargo restitution programs include:
- CFPB Redress — Auto loans: Minimum $4,000 for wrongful vehicle repossessions (2011–2022)
- CFPB Redress — Mortgage: ~$200M for wrongful foreclosure actions
- CFPB Redress — Deposit accounts: Over $500M for 5+ million affected checking/savings accounts
- $185M COVID Forbearance National Settlement: Already finalized; checks being issued
For questions about the $56.85M settlement, contact the Settlement Administrator at 877-307-7268 or visit caresactlitigation.com.