Summary
Wells Fargo will pay over $56 million to settle a lawsuit related to claims it violated the Fair Credit Reporting Act. The lawsuit alleges Wells Fargo incorrectly reported mortgage forbearances during the COVID-19 pandemic, affecting borrowers' credit scores.
Key Facts
- Wells Fargo agreed to a $56.85 million settlement for a class-action lawsuit.
- The lawsuit claims Wells Fargo violated the Fair Credit Reporting Act during the pandemic.
- Borrowers with "current" status entering forbearance were allegedly reported as "in forbearance."
- California borrowers with mortgages serviced by Wells Fargo may benefit from this settlement.
- Eligible borrowers had to have a forbearance starting on or after March 27, 2020.
- Final court approval for the settlement is scheduled for April 17.
- The CARES Act ensures mortgages in forbearance should remain reported as "current."
