Wells Fargo $56.85M CARES Act Settlement, CARES Act Forbearances as “in forbearance” instead of “current. Who Qualifies and What to Expect

California mortgage borrowers who entered COVID-19 forbearance with Wells Fargo and had their accounts wrongly reported to credit bureaus as “in forbearance” are entitled to automatic cash payments from a $56,850,000 settlement. No claim form is required. Checks will be mailed automatically after the final approval hearing on April 17, 2026. The deadline to object or update your mailing address is March 25, 2026. The official settlement website is caresactlitigation.com.

Key Dates

What This Case Is About

The CARES Act, signed into law on March 27, 2020, required lenders who made payment accommodations during COVID-19 — including mortgage forbearances — to continue reporting those accounts as “current” to credit bureaus, as long as the borrower was current before the forbearance began.

Wells Fargo allegedly violated this requirement by reporting accounts with CARES Act forbearances as “in forbearance” instead of “current.” This allegedly inaccurate reporting harmed consumers’ credit scores.

A damaged credit score during 2020 and 2021 was not just inconvenient — it was potentially costly. Plaintiffs said the botched data hurt their credit scores, making loans harder to get and raising costs at a time when mortgage interest rates were near historic lows and many homeowners were trying to refinance.

The parties reached this settlement after litigating the case for over five years, conducting formal and informal discovery, and with the assistance of an experienced neutral mediator. Wells Fargo denies all wrongdoing and has not admitted to any violations.

Settlement Amount: Full Math Breakdown

The official settlement documents provide the following financial structure:

Total Settlement Fund: $56,850,000

Deductions from the fund (all subject to court approval):

• Attorney fees: Up to 30% of the settlement fund = up to $17,055,000
• Attorney expense reimbursement: Up to $190,000
• Settlement administrator costs: Approximately $297,000
• Service awards to class representatives/members: Up to $98,000
  • Class Representative Stoff: up to $90,000
  • Two class members (deposition participation): up to $2,000 each
  • Four additional class members: up to $1,000 each

Maximum total deductions: approximately $17,640,000

Minimum net settlement fund for class members: approximately $39,210,000

All deductions are pending court approval at the April 17, 2026 final approval hearing. The net settlement fund is the amount remaining after all approved deductions.

Who Qualifies — Eligibility Requirements

The Settlement Class includes all mortgagors with a mortgage on property located in California whose accounts were “current,” who received a CARES Act forbearance on or after March 27, 2020, and whose accounts were reported as “in forbearance” (or something similar) by Wells Fargo to a consumer reporting agency.

In plain terms, you likely qualify if all four of the following are true:

• Your mortgage was serviced by Wells Fargo during the COVID-19 pandemic
• Your mortgaged property is located in California
• Your account was current (not already behind on payments) when you entered CARES Act forbearance
• You entered CARES Act forbearance on or after March 27, 2020
• Wells Fargo reported your account as “in forbearance” (or similar wording) to a credit reporting agency such as Equifax, Experian, or TransUnion

You do not need to prove you were harmed. You do not need to document a credit score drop. You do not need to file any paperwork.

Who Is NOT Eligible

You are not eligible if:

• Your mortgaged property is located outside California — this settlement covers California properties only. A separate $185 million nationwide settlement covering borrowers placed into forbearance without consent received final approval in February 2025. That settlement’s claims deadline has already passed.
• Your Wells Fargo account was already delinquent before you entered forbearance — the CARES Act protection only applied to borrowers who were current
• You opted out of the settlement — the opt-out deadline has already passed. If you excluded yourself during the opt-out window, you are not part of this settlement
• You are not a mortgagor — renters, Wells Fargo checking account holders, credit card holders, and auto loan customers are not covered by this specific settlement

Common Misunderstanding: Many people searching “Wells Fargo settlement 2026” encounter claims of a $5,000 Wells Fargo payment. This is false. No verified Wells Fargo settlement offers $5,000 individual payments. The CARES Act settlement pays an equal pro rata share of the net fund — estimated at $100 to $150 per person based on the total number of class members.

Duplicate claim warning: Because no claim form is required, there is nothing to duplicate. Payments are mailed automatically. You cannot speed up your payment by contacting the administrator — they will process all payments after final approval.

Payment Calculation: How Much Will You Receive?

Step 1 — How the payment system works

Each Class Member will be distributed a Settlement Share, determined by dividing the Net Settlement Amount by the number of Class Members, such that each Class Member receives an equal pro rata share. Every qualifying class member receives exactly the same amount — there are no tiers, no multipliers, and no bonus payments for documented harm.

Step 2 — The math

The net settlement fund (after all deductions) is approximately $39,210,000 assuming maximum attorney fees and costs are approved. That amount is divided equally among all qualifying class members.

The total number of class members has not been officially published. Payment estimates depend entirely on that number:

Legal analysts estimate payments of $100 to $150 per person, depending on the total number of eligible class members.

Step 3 — Real examples

Example A — Single California mortgage, account current, entered forbearance April 2020: One qualifying account → one equal share → estimated $100–$150

Example B — Joint mortgage, both spouses named on account: The settlement covers mortgagors — if both spouses are listed on the mortgage and both received notice, eligibility depends on how the administrator counted the accounts. Contact 1-877-307-7268 to clarify your specific situation.

Example C — Multiple Wells Fargo mortgages on separate California properties: Each separately reported mortgage account that meets the criteria may qualify as a separate class member. Verify with the settlement administrator.

Step 4 — What remains unknown

The exact per-person payment cannot be confirmed until after the April 17, 2026 final approval hearing and the administrator processes the full class list. Attorney fees and costs must also be formally approved by the court. Estimated payments will be updated on caresactlitigation.com as information becomes available.

No Claim Form Needed — But Here Is What You Should Do

Settlement Share checks will be mailed to Class Members without the need for claim forms or documentary proof. The settlement administrator, A.B. Data, Ltd., will mail checks to eligible class members automatically after the court grants final approval.

What you should do before March 25, 2026:

1. Update your mailing address if you have moved since Wells Fargo last had your address on file. Contact the administrator at 1-877-307-7268, email [email protected], or write to:
   
   
   Wells Fargo CARES Act Mortgage Credit Reporting Class Action c/o A.B. Data, Ltd. P.O. Box 173008 Milwaukee, WI 53217
   
   
2. File a written objection by March 25, 2026 if you disagree with any part of the settlement terms. Objections must be filed with the court and mailed to the settlement administrator. Specific objection requirements are listed on caresactlitigation.com.
   
3. Cash your check within 90 days of receiving it. Class Members will have 90 days to cash the Settlement Share checks, after which the checks will be voided.
   

What happens to uncashed checks: Any funds remaining in the settlement after the first round of payments may be used for a second round of payments if the remaining funds are large enough to warrant a second distribution. If remaining funds are not large enough, the funds will be donated to Credit Builders Alliance, a nonprofit organization that helps low- and moderate-income consumers build credit.

Important Things to Know

Tax implications: Settlement payments may or may not be taxable depending on your individual circumstances. This article does not provide tax advice. Consult a tax professional about whether your payment must be reported as income.

What you give up: Upon final approval, each Class Member releases Wells Fargo from all claims asserted in the action and from any and all past and/or present claims resulting from, arising from, or relating in any way to Wells Fargo’s furnishing of information to credit reporting agencies with respect to mortgage loans in CARES Act forbearance. By accepting payment, you cannot sue Wells Fargo separately for these specific credit reporting claims.

Opt-out window is closed: The deadline to exclude yourself from the settlement has passed. You cannot opt out now and retain the right to sue independently over these claims.

Scam warning: The only legitimate settlement website is caresactlitigation.com. The only legitimate administrator phone number is 1-877-307-7268. Anyone contacting you asking for a fee to receive your settlement check, or asking for your bank account number to “deposit” your payment, is running a scam. Legitimate settlement payments arrive by mailed check — no fee, no bank information required.

Frequently Asked Questions

Do I need to file a claim form to receive a payment? 

No. You do not need to take any action to receive a Settlement Share. If the Settlement is approved by the Court, the Settlement Administrator will mail the Settlement Share checks to eligible Class Members.

How much will I receive? 

Each class member receives an equal share of the net settlement fund. Based on an estimated net fund of approximately $39.2 million, analysts estimate $100 to $150 per person. The exact amount depends on the total number of qualifying class members and the attorney fees approved by the court.

When will checks be mailed? 

The final approval hearing is scheduled for April 17, 2026. It is likely that the settlement will receive final approval by the second half of May 2026, with payments to recipients in June or July 2026.

I moved. How do I make sure my check reaches me? 

Contact A.B. Data, Ltd. at 1-877-307-7268 or email [email protected] before the March 25, 2026 deadline to update your mailing address.

Does this settlement cover my Wells Fargo mortgage if my property is outside California? 

No. The Stoff v. Wells Fargo settlement is limited to mortgages on California properties. A separate $185 million settlement covered nationwide borrowers who were placed into forbearance without consent, but that settlement’s claims deadline passed in January 2025.

What is the case name and court?

 The case is Stoff v. Wells Fargo Bank, N.A., Case No. 37-2020-00020808-CU-BT-CTL, in the Superior Court of California, County of San Diego.

Can I still opt out of the settlement? 

No. The opt-out deadline has passed. You can still object to the settlement terms in writing by March 25, 2026, but you can no longer exclude yourself to pursue independent legal action over these credit reporting claims.

Who are the class attorneys and will they charge me? 

Class Counsel are Andrew J. Brown of The Law Offices of Andrew J. Brown in San Diego and Russell S. Thompson IV of Thompson Consumer Law Group in Scottsdale. You will not be charged for contacting these lawyers. If you want to be represented by a different lawyer, you may hire one at your own expense.

How much are the attorneys requesting in fees? 

Class Counsel will seek attorney fees in an amount not to exceed 30% of the Settlement Fund, and reimbursement of expenses not to exceed $190,000. Class Counsel also anticipates Settlement Administrator fees of approximately $297,000. All fee requests require court approval at the April 17 hearing.

What happens if the court does not approve the settlement?

 If the court denies final approval, no payments will be made and the case would return to active litigation. This outcome cannot be predicted and has not been signaled by the court. Preliminary approval was granted on January 9, 2026.

Last Updated: February 18, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal or tax advice. Settlement terms, eligibility, and payment amounts are subject to court approval and may change. For official information, always refer to the settlement administrator or the official settlement website.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
Read more about Sarah