Quick Answer: Wells Fargo has agreed to a $56.85 million settlement for allegedly misreporting California mortgage borrowers’ forbearance status to credit bureaus during COVID-19. If you had a Wells Fargo-serviced California mortgage, were current on payments, and entered CARES Act forbearance after March 27, 2020, you may get a check automatically — no claim form required.
If Wells Fargo reported your mortgage as “in forbearance” to the credit bureaus after you entered a CARES Act forbearance, that notation may have violated federal law — and a $56.85 million settlement is headed your way without you having to do anything.
The case, Stoff v. Wells Fargo Bank, N.A., was filed in June 2020 in the Superior Court of California, County of San Diego. The lawsuit alleged Wells Fargo failed to comply with the CARES Act’s credit reporting requirements by furnishing “inaccurate or incomplete” information to consumer reporting agencies about borrowers’ forbearance accounts.
What the CARES Act Actually Required
When Congress passed the CARES Act in March 2020, it included specific protections for borrowers who entered mortgage forbearance. Under Section 4021, if a borrower was current on payments and entered a forbearance agreement, the servicer was required to continue reporting the account as current to credit bureaus — not mark it as “in forbearance.”
The lawsuit alleged Wells Fargo reported these accounts as “in forbearance” instead, which could negatively affect borrowers’ credit scores and their ability to qualify for refinancing, new loans, or other credit.
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Why This Matters: A forbearance notation on your credit report, even if technically different from “delinquent,” sends a signal to lenders that you may be a risk. That could mean higher interest rates on a refinance, denial for a new mortgage, or rejection for other credit — all because of how your servicer reported a program the government designed to protect you.
Settlement Details
Key facts from the official settlement website:
- Total fund: $56,850,000
- No claim form required — eligible class members will receive checks automatically
- Equal distribution: Each class member gets a pro rata share of the net settlement fund
- Checks valid for 90 days after mailing
- Final approval hearing: April 17, 2026, at 1:30 p.m., Hall of Justice, San Diego
- Checks expected: Approximately 30 days after final approval (late May 2026)
How the Money Breaks Down
From the $56.85 million fund:
- Attorney fees: Up to $17,055,000 (30%)
- Administration costs: $297,000
- Litigation expenses: Up to $190,000
- Service awards: Up to $98,000
- Remaining for class members: Approximately $39.2 million
Are You Eligible?
You’re part of the class if ALL of the following apply, according to the settlement terms:
- Your mortgage was on a California property
- Wells Fargo serviced your mortgage
- Your account was current (0-29 days past due) when you entered forbearance
- You received CARES Act forbearance on or after March 27, 2020
- Wells Fargo reported your account as “in forbearance” to a credit reporting agency
California Borrowers Only: This settlement is limited to mortgages on California properties. If you had a Wells Fargo mortgage in another state, this specific settlement does not apply to you. However, a separate $185 million settlement covered Wells Fargo borrowers nationwide who were placed into forbearance without consent.
What You Need to Do
Nothing. If you’re eligible, the settlement administrator (A.B. Data, Ltd.) will mail a check to your last known address. You don’t need to file a claim, submit documents, or contact anyone.
However, if you’ve moved since your Wells Fargo mortgage:
- Contact the settlement administrator at 1-877-307-7268 or info@CaresActLitigation.com to update your address
- Objection deadline: March 25, 2026
- If you want to exclude yourself, do so before the deadline on the settlement website
How Much Will You Get?
The per-person amount depends on how many class members are eligible. With approximately $39.2 million in the net fund, estimates from legal analysts suggest payments in the range of $100 to $150 per class member. If you were one of many affected, the check won’t be life-changing — but it’s money you’re owed.
If a check shows up in your mailbox from a class action settlement, cash it. It’s not a scam — it’s money a company paid because they did something wrong.— Steve Rhode
The Bigger Picture
This is one of several major COVID forbearance settlements Wells Fargo has faced. The bank also agreed to a $185 million settlement for placing borrowers into forbearance without their consent. That settlement’s claims deadline has already passed (January 10, 2025), and payments have already begun.
If the pandemic taught us anything about the mortgage system, it’s this: protections exist on paper, but how your servicer actually implements them matters more than the law itself.
Dealing With Debt? If mortgage problems are part of a bigger financial picture, take the free Find Your Path quiz to understand all your options — including ones you may not have considered.
Key Takeaways
- Wells Fargo agreed to a $56.85 million settlement for allegedly misreporting California borrowers’ forbearance status to credit bureaus
- No claim form needed — checks are mailed automatically to eligible class members
- Eligibility: California mortgage, current on payments, entered CARES Act forbearance after March 27, 2020, reported as “in forbearance”
- Final approval hearing: April 17, 2026; checks expected late May 2026
- Estimated per-person payout: $100-$150
- If you’ve moved, contact the settlement administrator at 1-877-307-7268 to update your address
FAQ
Do I need to file a claim for the Wells Fargo CARES Act settlement?
No. Eligible class members will receive checks automatically. The settlement administrator, A.B. Data, Ltd., will mail payments to your last known address. If you’ve moved, call 1-877-307-7268 or email info@CaresActLitigation.com to update your address.
How much will I get from the Wells Fargo forbearance settlement?
Each class member receives an equal pro rata share of the net settlement fund (approximately $39.2 million after fees and costs). Legal analysts estimate payments of $100 to $150 per person, depending on the total number of eligible class members.
When will the Wells Fargo settlement checks be mailed?
The final approval hearing is scheduled for April 17, 2026. If approved, checks will be mailed approximately 30 days later — likely in late May 2026. Checks are valid for 90 days after mailing.
Does this settlement apply outside California?
No. The Stoff v. Wells Fargo settlement is limited to mortgages on California properties. A separate $185 million settlement covered nationwide borrowers who were placed into forbearance without consent, but that settlement’s claims deadline passed in January 2025.
What did Wells Fargo do wrong with CARES Act forbearance?
The lawsuit alleged Wells Fargo reported borrowers’ accounts as “in forbearance” to credit bureaus, even though the CARES Act required servicers to continue reporting current borrowers as current during forbearance. This inaccurate reporting could have damaged borrowers’ credit scores and their ability to qualify for new loans or refinancing.
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So your telling me 39 million and lets say $150 each family, thats around 260,000 families lives they played with. These class actions are complete bull and then I said shit. These corporations do these things cause they know they made more from intrest and other fees they charged these families during the last 6 years of litigation makes the 56 million equal pennies for them….ok enough complaining! SHOW ME THE MONEY! THATS $150 I DIDNT HAVE.