Last verified: October 2026
Wells Fargo agreed to pay $56.85 million to settle a class action lawsuit alleging the bank misreported mortgage forbearances during the COVID-19 pandemic in a way that may have damaged borrowers’ credit scores. The settlement covers California homeowners who took a CARES Act forbearance on their Wells Fargo mortgage starting in 2020.
The good news for eligible borrowers: you do not need to file a claim form. If you qualify, your check should arrive automatically. The settlement received final court approval on June 10, 2026, and checks were scheduled to be mailed by late August 2026.
If you have not received a check and believe you qualify, there is a 90-day window to cash it before it voids and a process to request a reissue if your address has changed since the forbearance period.
Key Takeaways
- Settlement amount: $56.85 million
- No claim form required payments go out automatically to eligible class members
- Who qualifies: California homeowners with a Wells Fargo mortgage who received a CARES Act forbearance on or after March 27, 2020, and whose account was current when the forbearance began
- Final approval: June 10, 2026, by Judge Katherine A. Bacal, Superior Court of California, San Diego County
- Checks mailed: Late August 2026 (per the settlement administrator)
- Void date: 90 days after the check is issued, cash it before late November 2026
- Settlement website: CaresActLitigation.com
- This is separate from the $185 million Wells Fargo forbearance settlement, you may qualify for both
What the Lawsuit Was About
When Congress passed the CARES Act in March 2020, it required mortgage servicers to report borrowers who entered forbearance as “current” on their credit reports. The whole point was to protect homeowners from credit damage during a financial crisis they did not cause.
The lawsuit, Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL, alleged that Wells Fargo did the opposite. Instead of reporting those forbearance accounts as current, the bank allegedly reported them as in forbearance or some similar derogatory status, which may have lowered borrowers’ credit scores at the worst possible time.
Wells Fargo denied wrongdoing. The court made no ruling on liability. The settlement resolves the dispute without a trial.
Who Is Eligible
To receive a payment from this settlement, you must meet all of the following:
- You own or owned California real property with a Wells Fargo mortgage
- Your loan was current (not already delinquent) when the CARES Act forbearance began
- The forbearance started on or after March 27, 2020
- Wells Fargo reported your account to a consumer reporting agency as in forbearance or a similar status (rather than current)
Who is not included:
- Borrowers outside California
- Borrowers who were already delinquent when their forbearance began
- Anyone who opted out of the settlement before the deadline
If you are not sure whether you were reported inaccurately, you can pull a free copy of your credit report at AnnualCreditReport.com and look for how your Wells Fargo account was listed during 2020 and 2021.
How Much Will Payments Be?
The settlement does not set a fixed payment per person. Each eligible class member receives a pro rata share of the net settlement fund, meaning the total is divided equally among all qualifying borrowers after court-approved deductions are taken out.
Those deductions include:
- Attorney fees: up to 30% of the fund (approximately $17.06 million)
- Case expenses: up to $190,000
- Administration costs: approximately $297,000
- Service awards to named plaintiffs: up to $98,000
After those deductions, an estimated $39 million or more remains to be divided among class members. The more people in the class, the smaller each individual check but the number has not been publicly disclosed.
The settlement administrator, A.B. Data, Ltd., handles distribution through the official settlement website at CaresActLitigation.com.
When Will Checks Arrive?
The court granted final approval on June 10, 2026. The settlement administrator indicated checks would be mailed by late August 2026.
If you believe you qualify and have not received a check:
- Check your address on file, checks go to the address associated with your Wells Fargo mortgage account at the time of the forbearance. If you have moved since 2020, the check may have gone to your old address.
- Contact the settlement administrator through CaresActLitigation.com to update your address or request a reissue before the void date.
- Cash any check you receive promptly, checks void 90 days after issue. A late-August check expires in late November 2026.
This Is a Different Settlement from the $185 Million Wells Fargo Case
Wells Fargo has faced multiple class actions related to mortgage forbearances during the pandemic. This $56.85 million settlement is specifically about credit reporting under the CARES Act.
A separate $185 million Wells Fargo settlement covered borrowers who were placed into forbearance without adequate informed consent. Checks in that case were mailed in March 2025.
If you had a Wells Fargo mortgage with a CARES Act forbearance, it is possible you qualify for both settlements. They are independent cases with independent class definitions and payment processes.
Frequently Asked Questions
Do I need to file a claim form for the Wells Fargo $56.85 million settlement?
No. This is an automatic payment settlement. If you are an eligible class member, you should receive a check without filing anything. The settlement administrator mails checks directly based on Wells Fargo’s loan records.
When will I receive my Wells Fargo settlement check?
The settlement administrator indicated checks would be mailed by late August 2026 following final court approval on June 10, 2026. If you have not received a check by October 2026 and believe you qualify, contact the administrator at CaresActLitigation.com.
How much will the Wells Fargo settlement payment be?
The individual payment amount depends on how many borrowers are in the class. After fees and costs, approximately $39 million or more is divided equally among all eligible class members. The per-person amount has not been officially disclosed.
What if my check arrived at the wrong address?
Contact A.B. Data, Ltd. through the official settlement site at CaresActLitigation.com before your check’s void date (90 days after issue) to request a reissue to your current address.
What is the Wells Fargo CARES Act settlement about?
The lawsuit alleged Wells Fargo violated the CARES Act by reporting mortgage forbearance accounts to credit bureaus as in forbearance rather than as current, potentially damaging the credit scores of California borrowers who were entitled to credit protection under the law. Wells Fargo denied wrongdoing.
Is this the same as the $185 million Wells Fargo settlement?
No. The $185 million settlement covered borrowers placed into forbearance without proper consent. This $56.85 million settlement covers borrowers whose credit was allegedly reported incorrectly during a CARES Act forbearance. They are two separate cases, and you may qualify for both.
What if I want to opt out or object?
The deadline to opt out or object was March 25, 2026. That window has closed. If you did not opt out, you are included in the class and will receive any payment automatically.
Who is the settlement administrator?
A.B. Data, Ltd. is the administrator for this settlement. You can reach them through the official settlement website at CaresActLitigation.com.
Bottom Line
If you had a Wells Fargo mortgage on California property and took a CARES Act forbearance starting March 2020 with your account in current status, you may be entitled to an automatic payment from this $56.85 million settlement. No action is needed on your part, just watch for a check and cash it before it expires.
If you have not received anything and think you qualify, go to CaresActLitigation.com and contact the administrator before late November 2026.
For other active class action settlements where you may be owed money, see our full list of open class action settlements. For more on your rights as a mortgage borrower, see our guide on consumer rights under the FCRA.
Last updated: October 2026. Settlement details are subject to change. Always verify current information at CaresActLitigation.com. This article is for informational purposes only and does not constitute legal advice.