Wells Fargo is shelling out $185 million to settle a class-action lawsuit related to COVID-19 mortgage forbearances. The settlement impacts customers who were placed into forbearance programs without their explicit consent.
Who Gets Paid?
The settlement covers Wells Fargo mortgage customers whose loans were put into forbearance between March 1, 2020, and December 31, 2021, without their informed consent. This means customers who inquired about hardship or expressed concerns but didn’t formally request forbearance may be eligible. Some customers have already received notification letters from Wells Fargo.
The Lawsuit’s Claim
The lawsuit alleged that Wells Fargo automatically enrolled customers in forbearance programs even when they hadn’t specifically asked for it. This allegedly caused financial hardship and negatively impacted their credit scores due to missed or delayed payments.
Wells Fargo’s Response
While Wells Fargo denies any wrongdoing, they’ve agreed to the settlement, stating it’s in the best interest of their customers. They emphasized their efforts to help customers facing financial difficulties during the early pandemic.
Important Note: This information is for general knowledge and shouldn’t be considered financial or legal advice. Consult with a professional for personalized guidance.
