Wells Fargo COVID Forbearance Settlement Litigation

A $185 million settlement has been reached in the class action lawsuit In re Wells Fargo COVID Forbearance Settlement Litigation in the United States District Court for the Southern District of Ohio. The Court approved the Settlement on December 19, 2024.

Plaintiffs allege that Wells Fargo (“Defendant”), placed customers into forbearance without informed consent. In the earliest days of the COVID-19 pandemic, Plaintiffs allege that Wells Fargo decided to provide mortgage forbearances to certain customers who had made an inquiry or expressed hardship but had not explicitly requested a forbearance. A forbearance temporarily suspends a customer’s obligation to make payments on their mortgage. However, the lawsuit alleges that some of the customers who received payment forbearances did not want them. Wells Fargo denies any wrongdoing. Both sides agreed to a settlement and the Court has approved the Settlement.

This website explains important legal rights you may have. Your legal rights are affected whether you act or do not act. Please read this website carefully.

Your Legal Rights and Options in This Lawsuit

Do Nothing and Receive a Settlement Check	If you did nothing, you will be included in the Settlement, and you will receive an Automatic Payment from the Settlement Fund and have an opportunity to receive a Supplemental Payment. Since the Settlement was granted final approval by the Court, you will release the claims in this litigation.
Submit a Claim for Additional Compensation	You could have requested Additional Compensation if you felt that being placed into forbearance without informed consent caused your credit applications to be denied or delayed or caused other harm. You must have completed and returned the Claim Form, postmarked on or before Friday, January 10, 2025. As the Settlement has been granted final approval by the Court, you are bound by the terms of the Settlement and cannot sue Wells Fargo, individually or as part of a class action, for the Class Released Claims that this Settlement resolves.
Exclude Yourself from the Settlement	If you wanted to exclude yourself or “opt out” from the Settlement, you must have submitted a Request to Opt Out to the Settlement Administrator, postmarked on or before Tuesday, November 12, 2024. If so, you will not receive any money from the Settlement Fund and you will not release your claims in the lawsuit. If you did not timely “opt out” of the Settlement, then you will release the claims in this litigation.
Object to the Settlement	If you remained in the Settlement and wanted to object because you believed the Settlement was unfair or inadequate, you could have filed a written objection to the Settlement with the Court, on or before Tuesday, November 12, 2024.
Go to the Final Approval Hearing	If you filed an objection and also wanted to speak at the Final Approval Hearing, you must have filed a written Notice of Intention to Appear, which must have been filed and postmarked on or before Tuesday, November 12, 2024.

These rights and options—and the deadlines to exercise them—are further explained in the Notice and on the Frequently Asked Questions (FAQ) page of this website.