f you had a Wells Fargo-serviced mortgage placed in forbearance during the early days of the COVID-19 pandemic, you might want to watch your mail. Settlement checks are on the way, and many recipients are finding them in plain envelopes.
In 2020, countless homeowners faced economic hardships and turned to forbearance as a way to temporarily pause or reduce mortgage payments. However, some Wells Fargo borrowers ended up in forbearance without asking, triggering a class-action lawsuit. Now, a $185 million settlement has been finalized, and those affected are beginning to receive their payments.
Why thousands of Wells Fargo mortgage beneficiaries could see unexpected checks soon
Plaintiffs in the lawsuit claim Wells Fargo placed accounts into forbearance without informed consent. In some cases, individuals only clicked on an informational link or mentioned forbearance in a phone call. This unrequested status led to lower credit scores and, in some instances, higher interest rates or denied loan applications.
The settlement, approved in December 2024 and effective since February 15, 2025, compensates those who experienced these complications. Below is a brief table outlining key timeline events:
| Event | Date |
|---|---|
| Settlement approved | December 2024 |
| Settlement became effective | February 15, 2025 |
| Deadline to file a claim form | January 10, 2025 |
| Checks began mailing | March 2025 (ongoing) |
Key details about settlement amounts, mailing deadlines, and important eligibility information
According to court documents, the first $69 million of the settlement is being equally distributed among class-action members. Those who documented specific damages, such as increased borrowing costs, could claim extra compensation by submitting a form before the January 10, 2025 deadline. Are you still wondering if you’re eligible? Class-action recipients are generally anyone whose Wells Fargo mortgage was placed into forbearance without their permission between March 1, 2020 and December 31, 2021.
Recipients say these checks arrive in simple, unmarked envelopes. If you suspect you’re part of this group, be sure to open all mail carefully, just in case an unexpected check turns up in your mailbox.
How additional lawsuits and financial precautions can impact your mortgage future
Wells Fargo has faced multiple class-action lawsuits in recent years, including allegations of underpaying interest rates and mismanagement of various accounts. Regardless of your financial institution, it’s always wise to check your statements, look for unusual fees, and track changes in recurring payments.
Here is a quick list of helpful steps to protect yourself:
- Review credit reports regularly
- Monitor interest rates and changes in loan terms
- Keep an eye out for unexpected policy updates or fees
- Contact the Consumer Financial Protection Bureau if you suspect wrongdoing
Staying informed can prevent unwelcome surprises down the road. Pay special attention to any announcements about your mortgage or bank, and do not hesitate to ask questions about unfamiliar charges.