$57 Million Wells Fargo Settlement: Who Is Eligible for Payments

The settlement will benefit borrowers whose credit scores may have been hurt by how their COVID-era mortgage forbearance was reported.

A customer leaves a Wells Fargo branch in San Rafael, Calif., on April 11, 2025. Justin Sullivan/Getty Images

Wells Fargo has agreed to pay nearly $57 million to settle a class-action lawsuit alleging the bank hurt some mortgagors’ credit scores during the early months of the COVID-19 pandemic.

The proposed settlement, which received preliminary approval from the Superior Court of California in San Diego County on Jan. 9, concerns borrowers who entered COVID-related mortgage forbearance under the bipartisan CARES Act, the massive relief package Congress passed in 2020.