settlement agreement
Wells Fargo will pay $185 million to settle a proposed class action lawsuit that accused the bank of forbearing mortgage loans without customers' consent during the early stages of the COVID-19 pandemic. An agreement was reached. The court granted preliminary approval of the Wells Fargo class action settlement in July 2024, and more information can be accessed at WellsFargoCovidForbearanceLitigation.com.
The settlement covers those whose mortgages were repaid by Wells Fargo between March 1, 2020 and December 31, 2021, and who received coronavirus-related mortgage forbearance without proper informed consent. It provides compensation to a group of U.S. residents subject to the imposition. This includes compensation. The person who signs the deed of trust, mortgage, or other security document associated with a mortgage, whether or not he signs the underlying promissory note or loan. However, this settlement does not apply to individuals who were Chapter 13 debtors or co-borrowers at the time their mortgages were forgiven.
reward distribution
As stated on the settlement website, the first $69 million of the $185 million settlement will be distributed equally and automatically to class participants. Co-borrowers are considered a single class member and receive one automatic payment, and each co-borrower is entitled to an additional $83.33. The website indicates that you don't need to do anything to receive automatic payments or additional payments to co-borrowers.
Claim procedures and deadlines
Visit this page to update your address and select your preferred payment method. You must provide the unique ID found on the payment notification you received by mail or email. If you lose your notification or do not receive it, please contact your payment administrator using the contact information provided here. Class participants who have suffered harm as a result of Wells Fargo's forbearance practices, including delays in refinancing, increased borrowing costs, and denials or deferrals of credit applications, are eligible to file claim forms seeking additional compensation. To submit your claim form online, please visit this page and enter your unique ID.
The deadline to submit your claim form is January 10, 2025. Payments for valid claims filed in a timely manner will be distributed only after the proposed settlement has received final court approval and any appeals have been resolved in favor of the agreement. A final approval hearing is scheduled for December 10, 2024. The original text of the class action lawsuit against Wells Fargo alleges that in 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which gave homeowners the right to request a temporary reprieve. is shown. About their mortgage. The complaint alleges that Wells Fargo automatically placed hundreds of thousands of mortgages in its repayment portfolio into forbearance without prior notice to affected borrowers. The filing alleges that while this practice provided Wells Fargo with financial benefits, it negatively impacted the creditworthiness of the borrowers.
