Wells Fargo Settles $56.85 Million Lawsuit Over Mortgage Reporting Errors

Wells Fargo has reached a settlement agreement of $56.85 million in response to a lawsuit accusing the bank of sending inaccurate mortgage reports to credit agencies during the COVID-19 pandemic. According to NS3.AI, the lawsuit claimed that Wells Fargo incorrectly classified mortgage accounts as 'in forbearance' instead of 'current,' which adversely affected customers' credit scores and their ability to access loans. The settlement stipulates that affected customers do not need to take any action, with payments expected to be distributed in April, pending court approval.