Wells Fargo agreed to pay $56,85 million in settlement of a lawsuit alleging that the bank sent erroneous credit reports to agencies.
The bank is accused of incorrectly reporting to credit bureaus that mortgage accounts during the pandemic were “in forbearance”, even though they had been current according to the CARES Act.
The bank was required to keep the data current by law. Plaintiffs claim that the incorrect information caused their credit scores to suffer, which made it harder for them to obtain loans and increased costs.
This case, filed at the San Diego Superior Court in California, targets homeowners who have mortgages that are legally current, despite having entered COVID-19 Forbearance after or on March 27, 2020.
Wells Fargo has denied any wrongdoing.
No forms are required to receive the $56,85,000,000 fund.
After final approval (expected in April), checks will be sent out to the last-known address.
This settlement comes after a $185 million separate agreement Wells Fargo made last year in response to claims that it had placed borrowers on forbearance with no informed consent.
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As new information becomes available, this post Wells Fargo pays $56,850,000 to customers after allegedly sending incorrect reports to credit agencies may be updated.
