Wells Fargo is a financial service company in the US that provides bank and financial services. Recently, it has agreed to a settlement of $56.85 million to resolve a class action lawsuit that was filed against the company for not following the federal CARES Act rules at the time of reporting mortgage status.
The Wells Fargo $56.85M mortgage forbearance CARES Act settlement is going to benefit the class members. Read this article thoroughly to check if you are eligible to get a payout, how much you can expect to get, how to submit a claim form, and much more about it.
Wells Fargo $56.85M Mortgage Forbearance CARES Act Settlement
Wells Fargo has agreed to the settlement of $56.85 million without accepting any wrongdoing; it will benefit the individuals whose accounts were reported as “in forbearance” to a consumer reporting agency, despite getting CARES Act forbearance on or before March 27, 2026.
The Wells Fargo $56.85M mortgage forbearance CARES Act settlement has already received a preliminary approval from the court. To get a payout from the settlement, there is no provision for filing a claim. All class members will get the payout automatically.
Who will get the payout from the Wells Fargo $56.85M settlement?
The payout from the Wells Fargo $56.85M mortgage forbearance CARES Act settlement will be received only by those individuals who meet the following eligibility requirements:
- You had a mortgage serviced by Wells Fargo.
- Your property is linked to the mortgage located in California.
- Your loan was current or past due (0–29 days late) when you requested payment relief.
- You were granted forbearance under the CARES Act on or after March 27, 2020.
- Your account status to credit bureaus was reported by Wells Fargo as ‘in forbearance’ instead of continuing to report it as current.
How much will be received from Wells Fargo’s $56.85M settlement?
If you are a class member of the Wells Fargo $56.85M mortgage forbearance CARES Act settlement, you will certainly receive a payment, but the exact amount has not been made public. The total $56.58 million will be distributed among class members after deducting the attorney fee and administration cost, which is likely to be around 33% of the fund.
The Wells Fargo $56.85M mortgage forbearance CARES Act settlement payment is expected to be received on a pro rata basis, depending on the funds allocated for the distribution to class members and the total number of class members. According to a reliable media source, the payout amount could be $100 to $150 for each class member.
Payment distribution among class members will be made through settlement in the form of paper checks. After the first phase of payment, if many people do not cash their checks, they will be distributed to those who have cashed their checks. The distribution for the second phase will only be made when the amount per person is at least $5. If this is not the case, the funds will be donated to the Credit Builders Alliance.
When to expect the Wells Fargo $56.85M settlement payout?
The Wells Fargo $56.85M settlement is expected to be finalized sometime soon. The hearing for final approval is scheduled for April 17, 2026. It is likely that the settlement will receive final approval by the second half of May 2026, with payments to the recipients in June or July 2026.