Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.
This settlement is closed!
Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!
Wells Fargo will pay $3 million as part of a settlement resolving a class action lawsuit that claimed the bank mishandled bankruptcy credit reporting.
The settlement benefits individuals who had a credit card account, direct auto account, home equity line of credit account, or personal line account with Wells Fargo that was charged off — meaning the grantor wrote the account off their receivables as a loss, and the account is closed to future charges, according to Experian — by Wells Fargo and sold to a third-party debt buyer on or after Jan. 1, 2009, and were discharged in Chapter 7 bankruptcy after the debt was sold but before March 16, 2020.
Wells Fargo is a widely used bank, despite its many scandals. In 2016, the bank was dragged through the news after it was revealed that Wells Fargo employees opened fake accounts for consumers in order to meet sales goals. Since then, the Federal Reserve has blasted Wells Fargo for its “pervasive and persistent misconduct” and “widespread consumer abuses.”
Consumers took further issue with the bank after it allegedly mishandled bankruptcy proceedings. In 2018, plaintiffs filed legal action against Wells Fargo claiming the bank failed to accurately update credit reports after consumers’ discharged debts through Chapter 7 bankruptcy were sold.
Instead of reflecting the true nature of the previous debts, Wells Fargo allegedly reported the debts were sold, charged off, and had a $0 balance. Consumers argue that Wells Fargo should have indicated in its reporting that these debts were included in bankruptcy proceedings.
As a result of these reporting practices, the plaintiffs and other consumers allegedly faced lower credit scores and a diminished ability to seek credit. This reporting may have even resulted in consumers paying discharged debts in order to avoid credit ramifications, despite the debts being discharged.
Wells Fargo has not admitted any wrongdoing but agreed to pay $3 million to resolve the claims against it.
Under the terms of the Wells Fargo class action lawsuit settlement, Class Members can collect two types of cash payments: reimbursement payments and distribution payments.
Reimbursement payments are available to Class Members who made payments on debts following Chapter 7 bankruptcy discharge. Payments will compensate these consumers for up to the full amount of their post-discharge payments. Class Members must support their claim with canceled checks, account statements, and other proof in order to receive this reimbursement.
Distribution payments are available to all Class Members, even if they did not make additional payments on discharged debts. Payments will vary depending on the net settlement fund after reimbursement payments are allocated and the number of valid claims filed by Class Members. No payment estimates are available.
The deadline for exclusion and objection is March 21, 2022.
The final approval hearing for the settlement hasn’t been scheduled yet.
In order to receive payments from the Wells Fargo bankruptcy credit reporting settlement, Class Members must submit a valid claim form by March 21, 2022.
Who’s Eligible
The settlement benefits individuals who had an account with Wells Fargo that was charged off by the bank, sold to a third party after Jan. 1, 2009, and then discharged through Chapter 7 bankruptcy before March 16, 2022.
Potential Award
Varies
Proof of Purchase
Cancelled checks, account statements, or other similar proof.
Claim Form
NOTE: If you do not qualify for this settlement do NOT file a claim.
Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.
Claim Form Deadline
03/21/2022
Case Name
Ajasa v. Wells Fargo Bank, N.A., Adv. Proc. No. 1-18-01122-ess, in the U.S. Bankruptcy Court for the Eastern District of New York
Final Hearing
TBD
Settlement Website
Claims Administrator
Ajasa v. Wells Fargo Bank, N.A.
Settlement Administrator
c/o Rust Consulting Inc – 7479
PO Box 2599
Faribault, MN 55021-9599
888-398-8213
Class Counsel
George Carpinello
Adam Shaw
BOIES SCHILLER & FLEXNER LLP
Charles Juntikka
CHARLES JUNTIKKA & ASSOCIATES
Defense Counsel
Jarrod D. Shaw
Benjamin J. Sitter
MCGUIREWOODS LLP
Read About More Class Action Lawsuits & Class Action Settlements:
- Equifax Data Breach Class Action Settlement
- JPMorgan Chase Bank Interest on Escrow $11.5M Class Action Settlement
- GE Capital, Synchrony Bank Customer Bankruptcy $8.5M Class Action Settlement
- Hudson’s Bay Company, Saks, Saks OFF 5TH, Lord & Taylor $2M Data Breach Settlement
ATTORNEY ADVERTISING
Top Class Actions is a Proud Member of the American Bar Association
LEGAL INFORMATION IS NOT LEGAL ADVICE
Top Class Actions Legal Statement
©2008 – 2024 Top Class Actions® LLC
Various Trademarks held by their respective owners
This website is not intended for viewing or usage by European Union citizens.
29 thoughts onWells Fargo Bankruptcy Credit Reporting $3M Class Action Settlement
I need a claimant number please, i am still banking with Wells Fargo as a matter of fact. I havent settled on another bank yet.
Please add me
I did have a mortgage w/them. It’s possible I am eligible
Idid have a ccard at this time please add
How do I get an id number to apply
please ad me due to credit card
I have a credit card with Wells Fargo
I need to speak with an attorney as I did not receive a claimant number as of yet. We did file bankrupt however wells fargo was notified several times to reaffirm our mortgage, it has never been done, therefore NO payments have been reported to our credit, even though we pay more than normal each month. I have called several times to them and our lawyer that did the bankruptcy. It has now been nearly 8 yrs and well our credit is suffering because that isn’t shown.
Add me
Add me
Add me