Wells Fargo customers may be eligible to be beneficiaries of a $185 million payout from the bank following a court’s approval of a massive class action settlement.
A lawsuit initiated last year claims that during the Covid-19 era, Wells Fargo issued mortgage forbearances to its customers when they didn’t want them, causing unnecessary hardship while also negatively affecting credit scores due to halted payments.
Plaintiffs alleged that the bank decided to provide mortgage forbearances to certain clients who had made an inquiry or expressed hardship but didn’t explicitly request a forbearance.
While Wells Fargo did not admit to any wrongdoing, the bank has agreed to pay $185 million to affected customers.
According to Top Class Actions, Wells Fargo customers who had a mortgage placed into COVID mortgage forbearance without informed consent between March 1, 2020, and Dec. 31, 2021 are eligible for compensation.
Some customers have reportedly already received letters from Wells Fargo in the mail in regards to the payout.
In an emailed statement to marketplace.org, a Wells Fargo spokesperson said,
“During the early stages of the pandemic, Wells Fargo worked hard to help customers who expressed concern about financial hardship and their ability to make their next mortgage payments… We support this settlement because we believe it is in the best interests of our customers.”
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