What is the Wells Fargo CARES Act mortgage settlement?

A $56,850,000 class action settlement resolving claims that Wells Fargo failed to properly report CARES Act mortgage forbearance accounts to credit reporting agencies. The CARES Act required lenders to report accounts in forbearance as 'current' if they were current before the forbearance began, but Wells Fargo allegedly reported them as 'in forbearance,' which damaged borrowers' credit scores. The case is Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL in the Superior Court of California, County of San Diego.

How much will I get from the Wells Fargo CARES Act settlement?

Each class member will receive an equal pro rata share of the Net Settlement Amount (the $56.85 million fund minus attorneys' fees, expenses, service awards, and administration costs). The exact per-person amount depends on the total number of class members, but with a fund this size the individual payments are expected to be substantial.

Who qualifies for the Wells Fargo CARES Act settlement?

California residents with a Wells Fargo mortgage on property located in California whose accounts were current (0-29 days past due) when they entered a CARES Act forbearance on or after March 27, 2020, and whose accounts were reported as 'in forbearance' or similar status by Wells Fargo to a consumer reporting agency.

What is the CARES Act and how does it relate to mortgage forbearance?

The CARES Act (Coronavirus Aid, Relief, and Economic Security Act) was passed on March 27, 2020 in response to the COVID-19 pandemic. Among other provisions, it allowed homeowners to request forbearance on their mortgage payments if they were experiencing financial hardship due to the pandemic. Critically, the law required lenders to report these forbearance accounts as 'current' to credit agencies — as long as the account was current before the forbearance began. This was designed to protect borrowers' credit scores during the pandemic.

What did Wells Fargo do wrong?

The lawsuit alleged that instead of reporting CARES Act forbearance accounts as 'current' as required by law, Wells Fargo reported them as 'in forbearance' to credit reporting agencies. Having 'in forbearance' on your credit report can significantly damage your credit score and make it harder to get approved for credit cards, auto loans, rentals, and other financial products. Wells Fargo denies all allegations of wrongdoing.

How long do I have to cash my Wells Fargo settlement check?

Class members will have 90 days to cash their settlement checks after they are mailed. After 90 days, uncashed checks will be voided. If there are remaining funds after the initial distribution, a second distribution may be made to class members who cashed their first check.

When is the Wells Fargo settlement final approval hearing?

The final approval hearing is scheduled for April 17, 2026 at 1:30 PM at the Hall of Justice, Third Floor, 330 W. Broadway, San Diego, CA 92101, before Judge Katherine A. Bacal.

What is the objection deadline for the Wells Fargo settlement?

The objection deadline is March 25, 2026 (75 days after the Court issued the Preliminary Approval Order). If you want to object to the settlement, you must file a written objection with the Court and mail a copy to the Settlement Administrator by this date.

Does this settlement only apply to California borrowers?

Yes. This settlement applies only to California residents who had a Wells Fargo mortgage on property located in California. Borrowers in other states who experienced similar credit reporting issues during CARES Act forbearance are not covered by this particular settlement.

Will the Wells Fargo settlement affect my credit report?

The settlement provides cash payments to affected borrowers. The settlement notice does not describe any provision for Wells Fargo to correct credit reports as part of this agreement. If you believe your credit report still contains inaccurate forbearance information, you may want to dispute it directly with the credit reporting agencies or consult with an attorney.

Wells Fargo $56.85 Million CARES Act Class Action Settlement

Q: Do I need to file a claim for the Wells Fargo settlement?

No. Payments are completely automatic. If the settlement is approved, checks will be mailed directly to all eligible class members without the need for claim forms or any documentary proof. You do not need to do anything to receive your payment.

Q: How are attorneys being paid in the Wells Fargo settlement?

Class Counsel will seek attorneys' fees not exceeding 30% of the $56.85 million settlement fund (up to approximately $17,055,000) plus reimbursement of expenses up to $190,000. Settlement administration fees are estimated at $297,000. Service awards totaling up to $98,000 are being requested. All amounts are paid from the settlement fund.

By Steve Levine

Wells Fargo CARES Act Mortgage Credit Reporting Class Action Settlement

Published: February 13, 2026

Claim Form Required: No — Payments Are Automatic

Settlement Fund: $56,850,000

Payment: Equal pro rata share per class member (checks mailed automatically)

If you had a Wells Fargo mortgage in California and entered a COVID-related forbearance under the CARES Act, your credit score may have been damaged — and a $56.85 million class action settlement is about to send you a check without you having to do anything at all.

What Happened?

When COVID-19 hit in early 2020, Congress passed the CARES Act (Coronavirus Aid, Relief, and Economic Security Act) to help Americans weather the financial crisis. One of the law's key protections was for homeowners: if you were struggling to make mortgage payments due to the pandemic, you could request forbearance — a temporary pause or reduction in your payments — without it hurting your credit.

The law was specific about this. If your mortgage was current when you entered forbearance, your lender was required to continue reporting your account as "current" to credit reporting agencies like Equifax, Experian, and TransUnion. The whole point was to give people breathing room during a pandemic without destroying their credit scores.

According to the lawsuit, Wells Fargo didn't follow this rule. Instead of reporting forbearance accounts as "current," Wells Fargo allegedly reported them as "in forbearance" or similar language to the credit agencies.

Why Does "In Forbearance" on Your Credit Report Matter?

This might seem like a small distinction — "current" versus "in forbearance" — but the impact on borrowers' financial lives was potentially enormous.

When a credit report shows an account "in forbearance," it signals to other lenders that something is wrong. Even though the CARES Act was specifically designed to prevent this from happening, the forbearance notation on a credit report could make it harder to get approved for a credit card, get a lower interest rate on a car loan, qualify for a new mortgage or refinance, pass a credit check for an apartment rental, or even pass background checks for certain jobs.

For many borrowers, the damage compounded. Credit scores dropped, and the consequences rippled across multiple areas of their financial lives — during a time when they were already dealing with the economic fallout of a global pandemic.

The entire purpose of the CARES Act forbearance provision was to prevent exactly this situation. Congress said: if your account was current, forbearance shouldn't touch your credit. The lawsuit alleges Wells Fargo failed to follow that rule.

Who Qualifies?

You are a class member if all of the following apply:

• You are a California resident with a Wells Fargo mortgage on property located in California
• Your account was current (0–29 days past due) when you entered forbearance
• You received a CARES Act forbearance on or after March 27, 2020
• Wells Fargo reported your account as "in forbearance" or similar status to a consumer reporting agency

This settlement is limited to California borrowers. If you had a Wells Fargo mortgage in another state and experienced similar credit reporting issues, this particular settlement does not cover you.

How Much Will I Get?

The total settlement fund is $56,850,000 — one of the larger consumer class action settlements in recent years. After attorneys' fees, expenses, service awards, and administration costs are deducted, the remaining amount (the "Net Settlement Amount") will be divided equally among all class members.

Each class member receives an equal pro rata share. The exact per-person amount depends on the total number of class members, but with a fund of nearly $57 million, individual payments are expected to be substantial.

Do I Need to File a Claim?

No. This is a completely automatic settlement. If the court grants final approval, settlement checks will be mailed directly to all eligible class members without the need for any claim forms or documentary proof. You do not need to do anything to receive your payment.

Once you receive your check, you will have 90 days to cash it. After 90 days, uncashed checks are voided. If money remains in the fund after the first distribution, a second round of payments may be sent to class members who cashed their initial check.

View Settlement Details

Important Dates

• Lawsuit Filed: June 18, 2020
• Class Certified: February 5, 2024
• Objection Deadline: March 25, 2026
• Final Approval Hearing: April 17, 2026 at 1:30 PM — Hall of Justice, 330 W. Broadway, San Diego, CA

Attorneys' Fees and Service Awards

Class Counsel (Andrew J. Brown of Law Offices of Andrew J. Brown and Russell S. Thompson IV of Thompson Consumer Law Group PC) will seek attorneys' fees not exceeding 30% of the settlement fund (up to approximately $17,055,000) plus reimbursement of expenses up to $190,000. Settlement administration fees are estimated at $297,000. Service awards totaling up to $98,000 are being requested — including up to $90,000 for the class representative (Stoff), up to $2,000 each for two class members who provided depositions, and up to $1,000 each for four additional class members who contributed to the case. All amounts are paid from the settlement fund.

What Happens If I Do Nothing?

In this case, doing nothing actually gets you paid. Unlike most class action settlements that require you to submit a claim form, this settlement distributes checks automatically to all eligible class members. If the court approves the settlement, you will receive a check in the mail. The only thing you need to do is cash it within 90 days.

However, by remaining in the settlement, you release your claims against Wells Fargo related to its credit reporting of CARES Act forbearance accounts. If you wish to preserve your right to sue Wells Fargo individually over these issues, the opt-out deadline has passed. You can still file an objection to the settlement by March 25, 2026.

How Do I Find Class Action Settlements?

Find all the latest class actions you can qualify for by getting notified of new lawsuits as soon as they are open to claims:

Case Information

The case is Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL, in the Superior Court of California, County of San Diego, before Judge Katherine A. Bacal.

Class Counsel: Andrew J. Brown of Law Offices of Andrew J. Brown (San Diego, CA) and Russell S. Thompson IV of Thompson Consumer Law Group PC (Scottsdale, AZ).

Settlement Administrator: A.B. Data, Ltd., P.O. Box 173008, Milwaukee, WI 53217.

Settlement Notice

Sources

• Class Action Settlement Notice, Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL (Superior Court of California, County of San Diego)
• Settlement Website: caresactlitigation.com

Filing Class Action Settlement Claims

No claim form is required for this settlement. Payments are automatic. If you are unsure whether you qualify, review the official notice or contact Class Counsel. OpenClassActions.com is a consumer news site and is not the settlement administrator or a law firm.

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Class Action Summary
Status	Proposed Settlement — Awaiting Final Approval
Claim Form Required	No — Payments Are Automatic
Settlement Fund	$56,850,000
Payment	Equal pro rata share per class member
Category	Mortgage / Credit Reporting / CARES Act / COVID Forbearance
Defendant	Wells Fargo Bank, N.A.
Eligible Class	California residents with Wells Fargo mortgages reported as "in forbearance" during CARES Act forbearance
Case Number	37-2020-00020808-CU-BT-CTL
Court	Superior Court of California, County of San Diego
Judge	Katherine A. Bacal
Objection Deadline	March 25, 2026
Final Approval Hearing	April 17, 2026 at 1:30 PM — San Diego, CA
Attorneys' Fees	Up to 30% (~$17,055,000) + $190,000 expenses
Settlement Website	Cares Act Litigation Site