Frequently Asked Questions

  1. What is this lawsuit about?

    In the earliest days of the COVID-19 pandemic, when many customers were expressing concern about financial hardship and their ability to make their next mortgage payment, Wells Fargo made a decision 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, some of the customers who received payment forbearances did not want them.

    Plaintiffs allege that Wells Fargo placed customers into forbearance without informed consent. Plaintiffs contend that Wells Fargo’s actions harmed certain customers if, for instance, the forbearance resulted in (a) a new credit application to be denied or (b) an increased interest rate or other credit cost on a new credit application. Wells Fargo denies any and all allegations of wrongdoing and does not admit or concede any actual or potential fault, wrongdoing, or liability in connection with any facts or claims that have been or could have been alleged in the lawsuit or in any similar action.

    The Complaints filed in the lawsuit, which provide greater details about Plaintiffs’ claims, can be viewed here.

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  2. Why is this lawsuit a class action?

    Class action lawsuits allow a large number of people with a common claim to sue collectively while being represented by members of the group called the “Class Representatives.” In this case, the Class Representatives have brought the lawsuit on behalf of themselves and others with similar claims. Together, all of the individuals with similar claims (with the exception of those who request exclusion or “opt out” from the Class) are referred to as “Class Members.”

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  3. What are the reasons for the Settlement?

    Plaintiffs and Class Counsel believe this Settlement provides a fair and reasonable resolution of the claims asserted in the lawsuit for the benefit of the Class.

    The Court has not ruled in favor of either the Plaintiffs or Wells Fargo. Instead, both sides agreed to a settlement that they believe is a fair, reasonable, and adequate compromise of their respective positions. The parties reached this Settlement after litigating the case for over three years, conducting formal and informal discovery, and with the assistance of an experienced neutral mediator and former U.S. District Court judge.

    By agreeing to the Settlement, the parties avoid the costs, delay, and uncertainty of further litigation, and Class Members receive the benefits described in the Notice.

    Wells Fargo denies any wrongdoing and the Settlement shall in no event be construed or deemed to be evidence or an admission or concession on the part of Wells Fargo with respect to any claim or of any fault, liability, wrongdoing, or damage.

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  4. Who is included in the Settlement Class?

    The “Settlement Class” or “Class” means all persons in the United States who (a) had a mortgage serviced by Wells Fargo that was placed into a COVID mortgage forbearance without adequate informed consent between March 1, 2020, and December 31, 2021 (“At-Issue Forbearance”); (b) were not a debtor or the co-borrower of a debtor in a Chapter 13 bankruptcy case on the date that the mortgage was placed into the forbearance; and (c) are not Wells Fargo’s officers, directors, and employees, Counsel for Wells Fargo, Class Counsel, or any judge involved in this action or their immediate families. The Class and Class Members include all individuals who signed the deed of trust, mortgage, or other security document associated with a Mortgage, even if they did not sign the underlying promissory note or loan.

    “Without adequate informed consent” is defined in the Settlement Agreement.

    The Settlement Class also includes a “Stoff Subclass,” which consists of persons who are both Class Members in this Settlement Class and who are also class members in Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL, currently pending in the Superior Court of the State of California, County of San Diego (the “Stoff Action”).

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  5. What benefits does the Settlement provide?

    Under the Settlement, Wells Fargo has agreed to establish a Settlement Fund totaling $185 million ($185,000,000.00) to provide the following benefits as consideration for the resolution and release of the Class Members’ claims:

    • The first $69 million ($69,000,000.00) will be distributed equally as Automatic Payments to Class Members who did not exclude themselves from the Settlement, pro rata based upon the number of mortgages placed into an At-Issue Forbearance. Class Members who are coborrowers on a Mortgage that received an At-Issue Forbearance will be treated as a single Class Member for the purposes of receiving an Automatic Payment; and
    • In addition to the Automatic Payment, each Co-Borrower on a Mortgage that received an At-Issue Forbearance, and who did not exclude themself from the Settlement, will receive an additional $83.33 automatically (“Co-Borrower Payment”). The Co-Borrower Payment(s) shall be included in the Automatic Payment check distributed for the associated mortgage account.
    • Class Members who did not exclude themselves from the Settlement could have submitted a Claim Form requesting additional compensation for damages proximately caused by the At-Issue Forbearance, including (a) delayed refinancing; (b) increased refinancing costs; (c) denial or reduction of personal credit lines and associated financial consequences; (d) inability to access existing lines of credit and costs for securing alternate funding; (e) lost income and/or lost business opportunity; or (f) any other damages caused by an At-Issue Forbearance. The Settlement Administrator shall have sole and final responsibility for validating the Claim Forms and determining the amounts of payments for individualized harms identified by the Class Members (the “Supplemental Payments”).

    The Settlement Fund will also be used to pay any Fee and Expense Awards to Plaintiffs’ Counsel approved by the Court; any Service Awards to the Class Representatives approved by the Court; and the Settlement Administrator’s costs and expenses to administer the Settlement.

    If the Settlement Fund has Remaining Amounts after paying the Automatic Payments, Co-Borrower Payments, and Supplemental Payments to Class Members, any Fee and Expense Awards, any Service Awards, and the Settlement Administrator’s Costs and Expenses, the funds will be distributed on a pro rata basis to Eligible Class Members who cashed a previous check; except if the amount would be under $10 each, in which case the Remaining Amounts shall be paid to a non-profit organization (cy pres recipient) approved by the Court or treated pursuant to state unclaimed funds procedures.

    In return for the benefits in this Settlement, all Settlement Class Members release Wells Fargo from the claims discussed in the Agreement, and the Action has been dismissed with prejudice, among other terms.

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  6. Do I need to do anything to receive a payment?

    You do not need to take any action to receive the Automatic Payment or additional Co-Borrower Payment(s). The Settlement was approved by the Court on December 19, 2024. The Settlement Administrator will mail the Automatic Payment and additional Co-Borrower Payment settlement checks to Eligible Class Members after the settlement is effective.

    To make a claim and receive a payment for additional harm, you must have completed and submitted a Claim Form online by January 10, 2025, or by mail postmarked by January 10, 2025.

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  7. How will this Settlement affect my rights?

    The Settlement was approved by the Court on December 19, 2024, and if you did not “opt out” or request exclusion from the Settlement, then you will release all claims against Wells Fargo.

    However, as explained in further detail in FAQ 16, Stoff Subclass Members will not release Wells Fargo from the Stoff Action’s claim for violation of the California Credit Consumer Reporting Agencies Act (Cal. Civ. Code § 1785.25[a]).

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  8. How do I exclude myself from the Settlement?

    The Request for Exclusion must have been postmarked on or before Tuesday, November 12, 2024.

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  9. If I did not request exclusion, can I sue Wells Fargo for the same claims later?

    No. Unless you requested exclusion from the Settlement, you gave up the right to sue Wells Fargo, individually or as part of a class action, for the Class Released Claims that this Settlement resolves as described in FAQ 16 below.

    However, as explained in further detail in FAQ 16, Stoff Subclass Members will not release Wells Fargo from the Stoff Action’s claim for violation of the CCRAA.

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  10. If I excluded myself, may I still receive compensation from the Settlement Fund?

    No. If you excluded yourself from the Settlement, you are not eligible to receive the Automatic Payment and additional Co-Borrower payment or submit a Claim for additional compensation from the Supplemental Payment Fund.

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  11. Do I have a lawyer in this case?

    Yes. The Court has appointed the following law firms to represent you and the other Class Members as “Interim Class Counsel.” You can contact Interim Class Counsel at the addresses or phone numbers listed below. They are:

    Interim Class Counsel
    Abbas Kazerounian
    Kazerouni Law Group APC
    245 Fischer Avenue
    Unit D1
    Costa Mesa, CA 92626
    Tel: 949-860-7377
    Derek W. Loeser
    Keller Rohrback L.L.P.
    1201 Third Avenue
    Suite 3400
    Seattle, WA 98101
    Tel: 206-623-1900
    Theodore O. Bartholow, III (“Thad”)
    Kellett & Bartholow PLLC
    11300 N. Central Expressway
    Suite 301
    Dallas, Texas 75243
    Tel: 214-696-9000
    Knoll Lowney
    SMITH & LOWNEY, PLLC
    2317 E. John Street
    Seattle, WA 98112
    Tel: 206-860-2976

    You will not be charged for contacting these lawyers. If you want to be represented by a different lawyer, you may hire one at your own expense.

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  12. How will the lawyers be paid for their services?

    Plaintiffs’ counsel applied to the Court for an award of attorneys’ fees and costs to compensate them for their legal services and expenses incurred in this matter. The Court approved the fee award of 25% of the Settlement Fund, inclusive of expenses and costs, which will be paid out of the Settlement Fund by the Settlement Administrator. The application for an award of attorneys’ fees and costs has been posted to this Settlement Website here.

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  13. Will Class Representatives receive Service Awards?

    Plaintiffs’ Counsel filed an application for Service Awards to be paid to each of the Class Representatives in recognition of the time and effort they provided in the lawsuit on behalf of the Class. The Court approved service awards of $12,500 to each Class Representative which will be paid out of the Settlement Fund. The application for Service Awards has been posted on the Documents page.

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  14. How do I inform the Court if I object to the Settlement?

    The deadline to file an objection to this Settlement passed as of November 12, 2024 and the terms of the agreement have been approved. The Final Approval Order is available here.

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  15. What is the difference between objecting to the Settlement and requesting exclusion?

    You could only have objected to the Settlement if you are a Class Member. Requesting exclusion from the Settlement meant notifying the Court that you did not want to remain a Class Member. If you excluded yourself, you had no basis to object because the Settlement no longer affected you.

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  16. What claims are being released as part of the Settlement?

    Upon Final Approval of the Settlement by the Court, each Class Member who did not request exclusion releases Wells Fargo from all claims asserted in the Action and from any and all past and/or present claims, lawsuits, and complaints of any kind resulting from, arising from, or relating in any way to the At-Issue Forbearances that Wells Fargo provided to the Class Members.

    Notwithstanding the foregoing, Stoff Subclass Members will not release Wells Fargo from the Stoff Action’s claim for violation of the CCRAA. This carve out is limited to the Stoff Action’s claim for violation of the CCRAA. In other words, Stoff Subclass Members who do not exclude themselves from the Settlement will release Wells Fargo from all other claims. Additionally, Wells Fargo reserves the right to argue in the Stoff Action that any payments received from the Settlement Fund should offset any potential recovery in the Stoff Action. Plaintiff Stoff reserves the right to argue in the Stoff Action that any payments received from the Settlement Fund should not offset any potential recovery in the Stoff Action.

    This is a summary of the settlement release. You can find the full settlement release in the Settlement Agreement, which is available here.

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  17. When and where did the Court decide to grant final approval of the Settlement?

    The Court held a Final Approval Hearing on Tuesday, December 10, 2024, at 11:00 a.m. EST at the Joseph P. Kinneary Federal Courthouse located at 85 Marconi Boulevard, Columbus, OH 43215, in Courtroom 120.

    At this Final Approval Hearing, the Court considered the Settlement was fair, reasonable, and adequate and decided to approve the Settlement including Plaintiffs’ Counsel for attorneys’ fees and expenses related to the litigation and the Class Representative Service Awards.

    The Court granted final approval on December 19, 2024. The signed order can be found here.

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  18. Did I have to attend the Hearing?

    No, Class Members did not need to attend the Hearing to benefit from the agreement. Information about the Class Member release is available in FAQ 16.

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  19. How do I get more information about the Settlement?

    This website and the Notice summarize the Settlement. More details regarding the terms of the Settlement can be found in the Settlement Agreement, which is available here. Updates, including any modifications to the schedule or this Settlement Agreement, will be posted on this Settlement Website.

    You may also contact the Settlement Administrator by calling the toll-free number, 1-888-204-8399, or by writing to:

    Wells Fargo Forbearance Litigation
    Settlement Administrator
    P.O. Box 2794
    Portland, OR 97208-2794

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