Wells Fargo customers, check your mail — literally. If your mortgage was placed into forbearance during the pandemic and you never asked for it, a settlement payment might already be on its way to you. These checks are part of a major class-action settlement, and they have officially started going out.
Here is everything you need to know if you think you might be part of the group receiving this payout.
What is the Wells Fargo mortgage settlement about
Back in 2020, when COVID-19 hit hard, a lot of people were struggling financially. Mortgage lenders started offering something called forbearance — that means you could pause or reduce your mortgage payments for a while if you were having trouble keeping up.
But here is the issue: Wells Fargo was accused of putting some people’s mortgages into forbearance without them ever asking for it. Some customers said they only clicked on an information link or had a brief conversation with a rep — they never agreed to forbearance. But Wells Fargo allegedly moved forward anyway, without clear permission. This led to negative effects on their credit reports, problems with getting approved for other loans, and more financial stress. That is what led to the class-action lawsuit.
Who qualifies for the Wells Fargo settlement payments
If you had a mortgage that was serviced by Wells Fargo and your account was placed into forbearance between March 1, 2020 and December 31, 2021, you might be part of the class-action group.
To be specific:
- You qualify if you did not give clear and informed consent for your loan to be put into forbearance.
- It does not matter if you are the only borrower or a co-borrower — both are included in the settlement.
- The settlement treats co-borrowers as one class member, but each co-borrower will still get an additional payment of $83.33.
How much money will people receive
The total settlement amount is $185 million, and it was approved by the court in December 2024.
- The first $69 million is being automatically divided among all eligible class members.
- Each person gets the same base amount, and co-borrowers will also receive the extra $83.33.
Some customers filed additional claims for extra compensation, especially if the unauthorized forbearance caused serious issues like missed refinancing opportunities or increased borrowing costs.
- Those who filed extra claims had until January 10, 2025 to do so.
- These claims are still being reviewed, and checks will go out once they are processed.
When are the Wells Fargo checks being sent
If you are eligible, the good news is that checks have already started going out. Payments began in March 2025. All checks are being sent by mail — not email and not through your online account. The checks come in a plain envelope, so do not throw away your mail without checking first. If you are expecting a payment, be extra careful with anything that looks like junk mail. It might be your settlement check.
How to know if you are getting a Wells Fargo settlement check
You probably already know if your mortgage went into forbearance. But if you are unsure, ask yourself:
- Did Wells Fargo place my mortgage into forbearance during the pandemic?
- Did I ever actually agree to that?
- Was there no clear communication or paperwork showing I accepted it?
If the answer to those questions is “yes,” then chances are you are part of the group receiving payments. You can also check with the settlement administrator or look up your mortgage records for that time period.
Can this happen again
This is not the first time Wells Fargo has faced legal trouble over its banking practices:
- In 2022, the company paid $3.7 billion for mismanaging accounts and charging surprise fees.
- In 2020, it paid $3 billion to settle federal claims related to opening accounts without customer permission.
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