$1.3M Wells Fargo Home Mortgage Settlement Ends Class Action Lawsuit Over COVID-19 Forbearance Program

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A $1.3 million Wells Fargo Home Mortgage settlement is set to wrap up a class action lawsuit that alleged the mortgage lender’s COVID-19 forbearance program provided incorrect information and charges to approximately 1,294 consumers in violation of the West Virginia Consumer Credit Protection Act.

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The Wells Fargo Home Mortgage class action settlement received preliminary approval from the court on October 31, 2025 and covers all borrowers on a Wells Fargo mortgage account with a West Virigina address who participated in a COVID-19 forbearance program, and received a letter between March and December of 2020 regarding what would happen with missed forbearance payments at the end of the loan period.

Related Reading: Wells Fargo Settlement 2025: $33M Deal Ends Class Action Over Alleged Aiding of ‘Free Trial’ Scams

The court-approved website for the Wells Fargo COVID-19 mortgage forbearance settlement can be found at KirkpatrickWVHomeMortgageSettlement.com.

Per settlement documents, Wells Fargo settlement class members do not need to do anything to receive a one-time cash payment of up to approximately $400. According to the settlement site, cash payments may become pro-rated depending on the number of valid claims filed, and one settlement payment will be made per home mortgage account.

The site also notes that Wells Fargo class members who wish to change or update their mailing address should contact the settlement administrator via email or a mailed letter including the class member’s full name, previous address, and current address.

The court will decide whether to grant final approval of the Wells Fargo Home Mortgage settlement at a hearing on February 20, 2026. Compensation will begin to be distributed only after final approval has been granted and all appeals are resolved.

The Wells Fargo Home Mortgage class action lawsuit claimed that the financial institution sent West Virginia consumers a notice explaining that each missed payment during the COVID-19 forbearance period would be automatically added to the end of the subsequent loan term. The lawsuit alleged that this information was incorrect and that Wells Fargo violated the West Virginia Consumer Credit Protection Act by failing to ameliorate its error.

Per the lawsuit, Wells Fargo “created an expectation that assistance would be automatically available” for consumers after the forbearance period ended, and  reportedly did not issue a retraction explaining the situation for nine months after the initial forbearance letters were sent.

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