Wells Fargo To Pay $185,000,000 To Customers in Massive New Settlement – Here’s Who Will Benefit

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Wells Fargo To Pay 5,000,000 To Customers in Massive New Settlement – Here’s Who Will Benefit — settle bank dollars.jpg

Wells Fargo customers have the potential to receive a substantial payout of $185 million from the bank as part of a class action settlement that has been approved by the court. The lawsuit, which was filed last year, alleged that during the Covid-19 pandemic, Wells Fargo provided mortgage forbearances to customers without their explicit consent, leading to unnecessary hardship and negative impacts on credit scores due to paused payments.

The plaintiffs claimed that the bank offered mortgage forbearances to certain clients who had only inquired about or expressed hardship, but had not actually requested a forbearance. While Wells Fargo has not admitted any wrongdoing, they have agreed to compensate affected customers with a $185 million payout.

According to Top Class Actions, customers who had their mortgages placed into Covid-related forbearance without informed consent between March 1, 2020, and December 31, 2021 are eligible to receive compensation from the settlement. Some customers have already received notification letters from Wells Fargo regarding the payout.

In a statement provided to marketplace.org, a Wells Fargo spokesperson stated, “During the early stages of the pandemic, Wells Fargo worked diligently to assist customers who were concerned about financial hardship and their ability to make mortgage payments. We believe that this settlement is in the best interest of our customers.”

This settlement highlights the importance of financial institutions ensuring that customers fully understand and consent to any measures taken during times of economic hardship. It also serves as a reminder for customers to stay informed about their rights and options when facing financial challenges.

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[Image Credit: Midjourney]