Wells Fargo agreed to pay $95.7 million to more than 5,300 home mortgage consultants to resolve a pair of class-action legal claims that allege wage-and-hour violations in California, according to the settlement agreement in federal court.
The deal will provide $62.8 million to the class members, with the remainder going to plaintiffs attorneys.
The lawsuit, which combined two legal actions that were designated a class action, was filed on behalf of 5,377 loan officers and other mortgage staffers employed by the bank in California from 2013 and 2019. James Kang, the lead plaintiff, said Wells Fargo illegally clawed back compensation.
Kang, an LO who worked at Wells Fargo between 2000 and 2015, alleged that the bank paid advances on commissions at a rate of $12 per hour but then clawed it back. He also claimed Wells Fargo didn’t compensate mortgage professionals for non-sales work, clawed back vacation pay from commissions and did not pay overtime wages as required by laws.
Wells Fargo “failed to pay plaintiff and class members for all hours worked, including but not limited to, mandatory meetings, loan processing, training and coaching sessions, loan tracking, customer surveys, attending open houses, attending events and galas, and working on certain nights or weekends,” Kang’s complaint, filed in 2017, said.
The overall settlement also includes more than $25 million already paid by the bank in a related class action brought by Jacqueline Ibarra over state rest-break rules, Bloomberg Law reported.
Wells Fargo, the largest depository mortgage lender in America, has been plagued by scandals in recent years. The lender’s account fraud scandal, in which millions of fraudulent savings and checking accounts were opened on behalf of Wells Fargo clients without their consent, became widely known in 2016. A settlement with the U.S. Attorney General in December 2018 brought the total settlement cost to $3 billion.
In 2017, Wells Fargo agreed to pay customers who were overcharged mortgage fees $50 million, one of the many cases it settled related to pre-financial crisis policies. Wells Fargo also paid $13 million to settle a class-action lawsuit that accused the bank of “improperly” modifying the mortgages of borrowers who had declared bankruptcy.
Disaster Assistance and Property Damage – Steps For Insurance Claims And Property Repairs
These are the general steps we take for property insurance claims. Your individual situation may differ.
Step 1. Contact your insurance company if you have any property damage
Your first step is to contact your insurance company and file a claim with them. Find out when an adjustor will come and when to expect any claim checks.
To avoid delays, clarify with the insurance company how the check will be made out:
- If there is an outstanding mortgage or home equity loan, the servicer’s name should be listed as a payee. If the loan was paid off, the servicer’s name shouldn’t appear.
- If a borrower listed as a payee can’t sign the insurance check, call us for information about the documentation we’ll need to proceed.
Step 2. Call us at 1-888-818-9147 (Mortgage) or 1-866-355-1540 (Home Equity) after you file a claim
We'll provide you important details on how to process your claim check. We'll discuss how Wells Fargo will be involved in the process to restore your home
If you’re still having financial difficulty at the end of the disaster assistance, we’ll discuss how to complete a confidential review of the options to help with payment challenges.
No matter how significant your property damage — even with a complete loss of your home — we’ll work with you to review all of your options.
For help after the disaster assistance ends, please contact us at:
Mon – Fri: 7 am – 10 pm
Sat: 8 am – 5 pm
Step 3. Endorse the insurance check and start the repair process
When you receive your insurance check, you'll notice that Wells Fargo is named on it. As the mortgage provider, we have a financial interest in ensuring your property is restored. Notify us as soon as you get your check, or visit our insurance claim check websites. We will give you the information you need to move forward with repairs.
For most minor damages, we'll endorse the insurance check to you to manage the repairs
Generally, if your home has only minor damages — and your loan is current — we won't need to oversee the repair process. Instead, we'll endorse the check completely to you to manage repairs. (Other conditions may apply.)
For significant damage, Wells Fargo will help monitor the repairs to your home.
Equal Housing Lender
Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A.
Under the Settlement(PDF), Defendants are distributing at least $393.5 million to Class Members pursuant to an Allocation Plan(PDF) and Distribution Plan(PDF). Allocation Plan(PDF) payments are being issued and mailed directly by Wells Fargo on a rolling basis. Please visit their website for more information about Allocation Plan payments.
Settlement Class Members who did not receive a payment under the Allocation Plan(PDF) are eligible to receive a pro rata distribution under the Distribution Plan if they had one or more CPI Policies placed on their account which remained in effect without reversal. Mailing of Distribution Plan(PDF) checks has begun and these checks will continue to be mailed on a rolling basis throughout July, 2020. Eligible Class Members should receive their checks by mid-August. You did not need to submit a claim to receive a Distribution Plan payment and Distribution Plan checks are being mailed automatically to all eligible customers.
This settlement resolves a lawsuit against Wells Fargo Bank, N.A., Wells Fargo & Co., National General Holdings Corp. and National General Insurance Company (collectively, “Defendants”) alleging that between October 15, 2005 and September 30, 2016, Defendants unlawfully placed collateral protection insurance (“CPI”) policies on Class Members’ automobile loan accounts. On November 20, 2019, the Court granted final approval(PDF) of this class action settlement(PDF) (dated November 4, 2019) and issued a Final Judgment(PDF). The settlement is no longer subject to appeal because the period for appeals has passed.
This website has more information about the class action settlement including answers to Frequently Asked Questions and Documents filed with the Court.
Please contact us if you have questions about the class action settlement at 1-877-641-8815 or by emailing [email protected]
WELLS FARGO LOAN UPDATE 3:
- The deadline for the Supplemental Class to file claims is Oct. 25, 2021.
- A judge has granted early approval to a supplemental settlement between Wells Fargo home loan borrowers and the bank.
- The supplemental settlement provides an extra $22 million to compensate additional mortgage customers who lost their homes when the bank wrongly denied them loan modifications.
- This follows an initial $18.5 million deal struck with initial claimants.
- The Wells Fargo Home Loan Class Action Settlement was granted final approval on Oct. 12, 2020.
- Keep checking back for updates and let us know when you receive a check in the comments section below or on ourFacebook page.
Wells Fargo home loan customers who lost their homes may be able to benefit from an $18.5 million settlement that, if approved by the court, will end a class action lawsuit alleging bank errors led to mortgage holders losing their homes to foreclosure.
Those with a Wells Fargo loan may be able to benefit from the settlement if, between 2010 and 2018 they met the following criteria:
- Qualified for a government-sponsored loan modification or repayment plan through Fannie Mae or Freddie Mac, the Federal Housing Administration, or the Home Affordable Modification Program;
- Were not offered a home loan modification or repayment plan because Wells Fargo assessed excessive attorneys’ fees;
- As a result, their home was sold by Wells Fargo in foreclosure.
The Wells Fargo home loan class action lawsuit was filed in 2018 by a woman who says that her application for a mortgage modification was wrongly denied by the bank and, as a result, her home was sold in foreclosure.
The plaintiff accused the bank of taking money from a government program and failing to pass that benefit on to Wells Fargo loan holders as required by the terms of that program.
The class action lawsuit contended that the government programs were initiated to help keep mortgage holders in their homes despite suffering a disruptive event, like a job loss or medical expenses. The programs offered by the federal government help keep people in their homes by reducing their mortgage payment.
According to the complaint, Wells Fargo came up with its own tool to calculate whether those asking for a loan or repayment modification under several government programs qualified. The tool was faulty, claimed the class action lawsuit, and was developed despite a correct tool offered by the federal government.
The Wells Fargo loan class action lawsuit claimed that the bank incorrectly foreclosed on more than 500 Wells Fargo home loan owners.
The Wells Fargo class action lawsuit pointed out that the bank admitted the tool was flawed and had denied mortgage modification and repayment applications in error.
The plaintiff allegedly received a check from the bank for $15,000 to “make things right” after losing her home to one of these errors.
The plaintiff said that Wells Fargo’s actions were not sufficient to address the harm caused to hundreds of homeowners who lost their residences to the alleged errors.
In 2020, Wells Fargo asked the court to pause the class action lawsuit, but lost its bid for a stay. The judge determined that the bank failed to show that the plaintiff had not established causation and damages.
In addition, the judge did not agree with Wells Fargo’s argument that it would suffer significant financial injury if the class action were allowed to proceed.
Ultimately, Wells Fargo denied the class action lawsuit’s allegations, but agreed to pay $18.5 million to settle the dispute.
Under the terms of the settlement agreement, Class Members will be automatically entered into the settlement and receive a share of $13.575 million.
Each Class Member’s award will be based on the unpaid balance of their mortgage at the time of Wells Fargo’s alleged error, whether they were delinquent on their loan for more than six months at the time, and the amount of the check previously sent to the Class Member when Wells Fargo admitted its error.
In addition, Class Members can make a claim based on severe emotional distress they suffered as a result of losing their home to foreclosure. Class Members who can demonstrate they suffered severe emotional distress will share $1 million of the settlement fund.
Class Members who wish to make a claim based on the severe emotional distress they suffered can submit a claim form by mail or online. Claims must be submitted by July 2, 2020.
The final hearing in the Wells Fargo home loan class action settlement was scheduled for Aug. 20, 2020. Class Members who wish to opt out or object to the settlement must have done so by mail, postmarked by July 2, 2020.
The claim deadline for the Supplemental Class is Oct. 25, 2021.
Checks mortgage wells fargo settlement
Settlement Structure: Claims Made
Closed Settlement Statement:
According to court documents, the claim submission deadline has passed. Please contact the claims administrator if you have any questions.Case Summary:
Wells Fargo is paying $18.5 million to settle a class action alleging that borrowers were denied home mortgage modifications, even though they qualified for them, and then lost their homes in foreclosure. The bank has admitted that it did this because of a calculation error and previously sent checks to affected borrowers.Docket Number:
Company: Wells Fargo
Filing Deadline: July 2, 2020
Class Period: January 1, 2010 to December 31, 2018
Objection Deadline: July 2, 2020
Exclusion Deadline: July 2, 2020
Final Approval Hearing: August 20, 2020Proof of Purchase:
You do not need to file a claim or show proof in order to receive payments for the refusal of loan modifications. If you wish to make a claim for severe emotional distress, you must file the claim form specifically intended for that.Eligibility:
You may be eligible if you are a person in the US who,
- Between 2010 and 2018,
- Qualified for a home loan modification or repayment plan under the requirements of government-sponsored enterprises (such as Fannie Mae and Freddie Mac), the Federal Housing Administration (FHA), and the US Department of Treasury’s Home Affordable Modification Program (HAMP),
- Were not offered a home loan modification or repayment plan by Wells Fargo due to excessive attorney’s fees being included in the loan modification decision-making process, and
- Your home was later sold by Wells Fargo in a foreclosure.
Note that, in order to be eligible, you must have not only been refused the loan modification but also lost your home to foreclosure. You are also not eligible if Wells Fargo sent you a letter but later determined that you did not qualify for a trial loan modification, or you have already signed a settlement with Wells Fargo releasing the claims at issue in this case.
If you suffered severe emotional distress from these events, you can submit a claim for an additional payment. A $1 million fund has been set aside specifically for these claims.Typical Settlement Amount:
Share of the net settlement fund based on (1) the amount of your unpaid balance at the time of Wells Fargo’s error, (2) whether you were delinquent on your loan for six months or more at the time of Wells Fargo’s error, and (3) how much Wells Fargo previously sent you in payment.
Total Settlement Amount: $18.5 millionClass Representative Proposed Incentive Fee:
Gibbs Law Group
Claim Form: Severe Emotional Distress Fund Claim Form
Case Name: Hernandez et al. v. Wells Fargo Bank
Settlement Website: Wells Fargo Refusal to Modify Mortgage Loans Settlement Website
JND Legal Administration
Hernandez v. Wells Fargo Bank, N.A.
c/o JND Legal Administration
P.O. Box 91350
Seattle, WA 98111
Wells Fargo Loan Modification Lawsuit (2021)
Wells Fargo Sends Letters and Checks to Wrongfully Foreclosed Homeowners
Wells Fargo has already sent letters and checks to many individuals who it admits were affected by the loan modification error. The letters typically say that the person was affected by the calculation error, and offers them a check in the range of $10,000 as a gesture of good will. If the person isn’t satisfied with the amount, Wells Fargo generally offers to submit to independent mediation to determine if the person should get more money. Wells Fargo doesn’t make clear that they may have an attorney present during the mediation. Mediators are generally former judges or practicing attorneys.
Many of the individuals who received these letters and checks from Wells Fargo feel that the offered money is not enough to compensate for all the harms that come with foreclosure. Many people lost substantial home equity value when their home was foreclosed on; others suffered adverse life events from having a poor credit rating; and others experienced significant upheaval to their personal lives, including pain and suffering.
Senator Elizabeth Warren said of Wells Fargo’s “remediation” plan: “Setting aside a few thousand dollars for each of the people affected. Pathetic.” And according to Senator Schatz, who sits on the Senate Banking Committee, Wells Fargo’s remediation plan does not offer near enough to compensate for the “devastating ripple effect” a foreclosure can have, including the “stress and trauma” of losing one’s home, “related health problems,” and “destroy[ing] people’s credit.” Senator Schwartz continued:
“It is hard to imagine how Wells Fargo’s estimate of $8 million for remediation would come close to remunerating impacted customers.”
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On November 20, 2019, the Court granted final approval(PDF) of this class action settlement(PDF) (dated November 4, 2019) and issued a Final Judgment(PDF). The Settlement is no longer subject to appeal because the period for appeals has passed. Distribution Plan(PDF) payments are currently being mailed to eligible Class Members.Back To Top
Distribution Plan checks began mailing mid-June 2020 and will continue mailing on a rolling basis through July 2020. You do not need to submit a claim to receive a Distribution Plan payment. Checks will be mailed automatically to all eligible customers.Back To Top
Compensation is per loan rather than per borrower. This means that only one compensation amount will be approved for each loan and checks will be made payable to all borrowers.Back To Top
Under the Settlement, at least $393.5 million in payments are being issued to Class Members.
The Settlement includes an Allocation Plan and payments under this plan are currently being issued and mailed directly by Wells Fargo on a rolling basis.
Wells Fargo has more information about these payments on its website.Back To Top
This lawsuit alleged that Defendants unlawfully placed duplicative, unnecessary, and overpriced CPI policies on Settlement Class Members' Wells Fargo automobile loan accounts during the period October 15, 2005 through September 30, 2016. CPI is a type of insurance provided by and through National General that Wells Fargo purchased to cover potential damage to vehicles it held an interest in that served as collateral to Wells Fargo Bank, N.A. auto loans. Plaintiffs allege that as a result of Defendants' CPI placements, Settlement Class Members suffered financial harm, including wrongful charges, fees, costs, and credit damage.
Defendants deny each and all of the claims and allegations of wrongdoing made by Plaintiffs and deny that they have violated any law or duty that would give rise to liability.Back To Top
There are a number of possible benefits of this Settlement, including cash and non-cash compensation.
There is no cap to the total amount of cash payments that will be made under the Settlement. The payments are calculated based on the type of impact that CPI may have had on your account.
Under the Settlement Allocation Plan:
- If a duplicative CPI Policy was placed on your account, you may have received, or will receive, if applicable, cash compensation for the following items detailed in the Settlement Agreement:
- A refund of the fees assessed to your account during the time period when CPI impacted your account;
- A refund of the insurance premiums you were assessed for duplicative CPI;
- A refund of the interest charges you were assessed for duplicative CPI;
- A payment for the additional interest that accrued on your loan due to the duplicative CPI premiums and interest; and
- A payment to compensate you for your inability to use the above funds elsewhere.
- If you resided in Arkansas, Michigan, Mississippi, Tennessee, or Washington when CPI was placed on your account, you may have received, or will receive, if applicable, cash compensation for the following items detailed in the Settlement Agreement:
- A refund of the fees assessed to your account during the time period when CPI impacted your account;
- A refund of the insurance premiums you were assessed for CPI;
- A refund of the interest charges you were assessed for CPI;
- A payment for the additional interest that accrued on your loan due to CPI premiums and interest; and
- A payment to compensate you for your inability to use the above funds elsewhere.
- If you fall into either of the above categories and also experienced a vehicle repossession caused by CPI during the applicable time period, you also may have received, or will receive, if applicable, the following items detailed in the Settlement Agreement:
- $4,000 as an estimate for the out-of-pocket transportation and non-transportation expenses you incurred due to the loss of your vehicle;
- A refund of the repossession costs you paid to Wells Fargo;
- A refund of the payments you made on your remaining auto loan balance after the proceeds from your vehicle's sale were applied to your loan (if applicable);
- A waiver for any remaining loan balance after the proceeds from the sale of your repossessed vehicle have been applied to your loan balance and/or Charge-Off Balance;
- The difference in price between what your vehicle sold for at auction and your vehicle's Kelley Blue Book Lender Value at the time of repossession, to the extent that value is greater than your outstanding loan balance (if applicable);
- A payment to provide a tax benefit if you previously had a deficiency balance waived and a 1099-C tax document was filed;
- A payment to compensate you for your inability to use the above funds elsewhere; and
- The option to participate in Wells Fargo's no-cost mediation program if you are not satisfied that the remediation provided is adequate to address your situation.
Under the Settlement Distribution Plan:
If you paid for a CPI Policy and do not qualify for compensation under any of the above categories as part of the Settlement Allocation Plan, you will receive a pro rata distribution under the Settlement Distribution Plan. $6.375 million will be distributed proportionally to Settlement Class Members who do not receive payment under the Settlement Allocation Plan if they paid for a CPI Policy placed on their account, which remained in effect, without reversal, for at least 120 days after the CPI Billing Date. $2.125 million will be distributed proportionally to all other Settlement Class Members who do not receive payment under the Settlement Allocation Plan if they paid for a CPI Policy placed on their account which remained in effect, without reversal, for less than 120 days after the CPI Billing Date.
In addition to the cash compensation described above, you may have received, or may be eligible to receive, certain credit report adjustments if: (1) either a duplicative CPI Policy was placed on your account or you resided in Arkansas, Michigan, Mississippi, Tennessee, or Washington when CPI was placed on your account, (2) at least one episode of delinquency (defined as account being over 30 days past due) occurred during the period the Settlement Class Member was charged for CPI, and (3) the delinquency was reported to Experian, TransUnion or Equifax.Back To Top
The Settlement includes two payment plans – the Allocation Plan(PDF) and the Distribution Plan(PDF).
The Allocation Plan payments and other benefits are being issued by Wells Fargo. These payments include refunds of CPI premiums along with interest, fees, other charges and loss of use of funds related to CPI. If your vehicle was repossessed related to CPI, there is additional compensation provided by Wells Fargo as part of the Allocation Plan and the option to participate in third-party mediation.
Meanwhile, Distribution Plan payments are being issued by the class action Settlement Administrator. If you paid for a CPI Policy and do not qualify for compensation under the Allocation Plan, you are eligible to receive a Distribution Plan payment.
There are two types of Distribution Plan payments. An eligible CPI policy can be paid under one type or the other but not both. The two Distribution Plan payment types are:
The first type is $6.375 million plus accrued interest that will be distributed proportionally to Settlement Class Members who do not receive payment under the Settlement Allocation Plan if they paid for a CPI Policy placed on their account, which remained in effect, without reversal, for at least 120 days after the CPI Billing Date.
The second type is $2.125 million plus accrued interest that will be distributed proportionally to all other Settlement Class Members who do not receive payment under the Settlement Allocation Plan if they paid for a CPI Policy placed on their account which remained in effect, without reversal, for less than 120 days after the CPI Billing Date.Back To Top
Wells Fargo has more information on its website about Allocation Plan payments.
If you believe that your payment was improperly calculated, you can contact the Settlement Administrator by phone at 1-877-641-8815 or [email protected] and provide your relevant insurance information. If the Settlement Administrator or Wells Fargo determines that your payment was improperly calculated, your payment will be updated and a new check will be issued.
Additionally, if you are a Settlement Class Member who experienced a CPI-related repossession caused by a Duplicative CPI Policy or a policy issued in Arkansas, Michigan, Mississippi, Tennessee, or Washington when CPI was placed on your account, you may be eligible to participate in no-cost mediation with Wells Fargo, in accordance with Section III(F) of the Settlement Agreement, if you are not satisfied with the compensation you receive. To request no-cost mediation, you can contact the Settlement Administrator using the contact information available on this website, or you can contact Wells Fargo's mediation program directly at 1-877-241-6571.Back To Top
Wells Fargo already has made some payments to Settlement Class Members under the Allocation Plan. Wells Fargo contemplates that fully effectuating its obligations under the Settlement, including compensation, may take until summer 2020, although some payments may take longer to process. Wells Fargo has more information on its website about these payments.Back To Top
If you are unable to cash the check you received or if you require a reissue for any reason, please contact the Settlement Administrator so we may have a replacement check issued to you. To contact the Settlement Administrator, please call 1-877-641-8815.Back To Top
If you received a notice by mail with a cover sheet that includes your Wells Fargo loan number, you have been identified as a Settlement Class Member and you may be eligible for Settlement benefits.
The Settlement Class generally consists of:
Wells Fargo Dealer Services ("WFDS") Customers who had a CPI Policy placed on their Account(s) that became effective at any time between October 15, 2005 and September 30, 2016, and
Wells Fargo Auto Finance ("WFAF") Customers who had a CPI Policy placed on their Account(s) that became effective at any time between February 2, 2006 and September 1, 2011.Back To Top
Yes. Excluded from the Settlement Class are "Non-Compensable Flat Cancels.” "Non-Compensable Flat Cancels” means:
- customers who provided proof of Duplicative Insurance Coverage for the entire CPI Placement Period, resulting in a cancellation of the policy in full before the scheduled CPI Billing Date;
- customers who provided proof of Duplicative Insurance Coverage for the entire CPI Placement Period, resulting in a cancellation of the policy in full on or after the scheduled CPI Billing Date but before the payment due date reflected on the customer's first periodic statement reflecting any increased monthly payment amount due to the CPI premium; and
- other customers who provided proof of Duplicative Insurance Coverage for the entire CPI Placement Period, resulting in a cancellation of the policy in full, and who did not pay a Duplicative CPI Premium or Duplicative CPI Interest, who were not assessed Fees during the CPI Impact Period that were not waived at the time, and who did not experience any negative credit reporting as a result of CPI as set forth in Section III(G) of the Settlement Agreement.
No. The deadlines to opt out or object to the Settlement have passed. A Final Judgment has been entered by the Court and the deadline to appeal the Final Judgment has passed.Back To Top
Yes. The Court has appointed the following law firms to represent the Settlement Class as "Class Counsel." You can contact Class Counsel via email at [email protected] They are:
|Co-Lead Counsel for Plaintiffs and the Settlement Class||Plaintiffs’ Liaison Counsel||Plaintiffs’ Steering Committee|
| Roland Tellis|
David Fernandes, Jr.
BARON & BUDD, P.C.
15910 Ventura Boulevard
Encino, CA 91436
Roman Silberfeld, David Martinez, Aaron Sheanin,
Kellie Lerner, and Benjamin Steinberg
ROBINS KAPLAN LLP
2049 Century Park East
Los Angeles, CA 90067
| David S. Casey, Jr. (SBN 060768)|
CASEY GERRY SCHENK FRANCAVILLA BLATT & PENFIELD, LLP
110 Laurel Street
San Diego, CA 92101
| Eric H. Gibbs|
GIBBS LAW GROUP LLP
505 14th Street
Oakland, CA 94612
Charles E. Schaffer
LEVIN SEDRAN & BERMAN
510 Walnut Street
Philadelphia, PA 19106
Telephone: 1-215-592 1500
Paul F. Novak
WEITZ & LUXENBERG, P.C.
Detroit, MI 48226
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. Please note that Class Counsel is unable to provide you with an update on your individual situation.Back To Top
If you would like to request a name change or address update, please contact the Settlement Administrator by calling 1-877-641-8815 or emailing [email protected] When contacting the Settlement Administrator, please provide your full name and Tracking Number, if available. You may also download a Name Change Request Form(PDF), available on the Documents page.Back To Top
If you have additional questions, please contact the Settlement Administrator by calling 1-877-641-8815 or emailing [email protected]
You may contact Class Counsel using the contact information provided in the FAQ "Do I have a lawyer in this case?."
Wells Fargo has more information on its website about Allocation Plan payments.
Go to the Documents page to view the Settlement Agreement(PDF) and other case documents.Back To Top