Published
February 13, 2026
Updated
July 25, 2026
This $56.85 million settlement covers certain California Wells Fargo mortgage borrowers whose CARES Act forbearance status was reported to credit bureaus. No claim form is required; eligible payments are automatic after the settlement becomes effective.
Current Status
No claim form is required. The objection deadline was March 25, 2026, and the final approval hearing was scheduled for April 17, 2026. The official settlement website had not posted a final approval order or payment date as of July 25, 2026.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.
StatusApproval Result Not PostedNo payment date announced.
Claim FormNot RequiredEligible payments are automatic.
Settlement Fund$56.85 millionBefore fees and costs.
Covered AreaCaliforniaQualifying Wells Fargo mortgage borrowers.
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.
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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.
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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Settlement Fund
$56,850,000
Case Title
Stoff v. Wells Fargo Bank, N.A.
Case Number
37-2020-00020808-CU-BT-CTL
Court
Superior Court of California, San Diego County
Claim Form
Not required — eligible payments are automatic
Status
Final approval result and payment date not posted
Official Website
CaresActLitigation.com
