$56.85M Wells Fargo Settlement Ends CARES Lawsuit Alleging Wrongful Forbearance Mortgage Account Reports

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Wells Fargo has agreed to a massive $56,850,000 settlement to resolve a class action lawsuit that alleged the bank did not comply with the Coronavirus Aid, Relief, and Economic Security (CARES) Act by failing to report that borrowers’ accounts were “current,” and not behind or late, to credit reporting agencies after issuing them COVID-related payment forbearance.

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The Wells Fargo COVID Forbearance class action settlement received preliminary approval from the court on January 9, 2026 and covers all California residents with a Wells Fargo mortgage on a property in the state whose accounts were listed as “current” and received a CARES Act forbearance on or after March 27, 2020 and after which, whose accounts were reported as “in forbearance,” or something similar, by Wells Fargo to a consumer reporting agency.

The court-approved website for the Wells Fargo CARES settlement can be found at CARESActLitigation.com.

According to the website, Wells Fargo settlement class members do not need to do anything to automatically receive a one-time, pro-rated cash payment from the settlement. The final amount of this payment, the agreement explains, will be an equal share between all settlement class members of what remains in the net settlement fund after the payment of attorneys’ fees, settlement administration costs and lead plaintiff service awards.

Settlement payments will be issued by check to class members to their last known address on file, and all checks must be cashed within 90 days of issuance before they expire.

Wells Fargo class members who wish to object to the settlement must send a written letter to the settlement administrator stating the specific groups for their objection, along with other information as described in the settlement notice.

Per the settlement site, a class member must submit objections and any requests to update their mailing address for payment purposes (if necessary) by March 25, 2026 to the address of the settlement administrator listed here.

The settlement agreement notes that the deadline for exclusion from the settlement has already passed.

The court will determine whether to grant final approval to the Wells Fargo settlement at a hearing on April 17, 2026. Compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Wells Fargo class action lawsuit argued that the bank did not meet the requirements outlined in the CARES Act, which required furnishers that made accommodations to credit payments and obligations related to COVID-19 to not report the accountholder as late or in forbearance unless they were already behind on payments. The suit argued that Wells Fargo reported inaccurate information to credit reporting agencies that said the accounts of its California mortgagors were “in forbearance,” which allegedly caused damage to credit scores and mortgage status in violation of the California Consumer Credit Reporting Agencies Act.

Did you know that some class action settlements require no proof to submit a claim? Check out the latest open class action settlements.