Do you live in California? How to claim your share of the $56M settlement with Wells Fargo
Wells Fargo will automatically distribute $56.85 million to eligible California homeowners whose credit scores were negatively impacted by incorrect reporting during COVID-19 forbearance.Summary
Wells Fargo has reached a $56.85 million settlement to compensate California homeowners who experienced negative impacts to their credit history during the COVID-19 pandemic. The class action lawsuit stemmed from allegations that Wells Fargo incorrectly reported mortgages under the CARES Act, potentially harming customers' credit scores. Homeowners who were current on their payments and received a mortgage pause were supposed to maintain a “current” status with credit agencies, but some were incorrectly marked as “in forbearance,” which can hinder access to favorable financing terms.
Eligibility for the settlement includes owning a property in California with a Wells Fargo-serviced mortgage, having received a CARES Act forbearance, being current on payments when the pause began, and having the forbearance start on or after March 27, 2020, with the bank reporting the account as “in forbearance” to credit bureaus. Importantly, eligible homeowners do not need to file a claim; payments will be automatically distributed upon final court approval.
A final hearing is scheduled for April 17th in San Diego County Superior Court to determine if the settlement can proceed. If approved, the distribution of funds will begin shortly thereafter, potentially providing compensation to those who qualified for and utilized mortgage forbearance during 2020.
(Source：Marca Claro)