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This settlement is closed!
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Wells Fargo Bank NA has reached a settlement in a class action lawsuit alleging it violated the Truth in Lending Act (TILA) by issuing payoff statements that did not credit or disclose property insurance claim funds held by Wells Fargo and which were potentially available to be applied to an account.
If you are a borrower with a mortgage serviced and owned by Wells Fargo and received payoff statements that failed to disclose property insurance claim funds, and/or if you had a mortgage (or mortgages) serviced and owned by Wells Fargo in which Wells Fargo was holding the insurance proceeds, you may be entitled to benefits from the mortgage payoff statement class action settlement.
TILA is a federal law that requires lenders and mortgage servicers to provide, upon a borrower’s written request, an accurate statement listing the total outstanding balance required to terminate the borrower’s loan obligation.
Plaintiff Latasha McLaughlin alleges Wells Fargo violated a section of TILA by issuing payoff statements that did not credit or disclose property insurance claim funds held by Wells Fargo and which were potentially available to be applied to McLaughlin’s loan balance.
McLaughlin claims that the insurance funds she was to receive following damage to her residential property and which were held by Wells Fargo at the time she requested a payoff statement should have been reflected on the statement.
On Oct. 29, 2015, a California federal court issued an order holding that the payoff statement should have deducted the payoff funds that were still held by Wells Fargo and should have, at minimum, included a note that the insurance funds could potentially be used for home repair if the loan was not paid off.
Wells Fargo denies any wrongdoing but agreed to settle the class action lawsuit to avoid the burden and expense of ongoing litigation.
The Wells Fargo class action settlement was preliminarily approved on Nov. 18, 2016. Class Members who would like to exclude themselves from or object to the Wells Fargo settlement must do so no later than Feb. 9, 2017.
Who’s Eligible
Class Members of the Wells Fargo settlement include:
- Damages Class: All borrowers with mortgages serviced and owned by Wells Fargo who, between June 23, 2014 and June 23, 2015, received payoff statements that failed to disclose property claim funds; and/or
- Declaratory Relief Class: All borrowers with mortgages serviced and owned by Wells Fargo wherein Wells Fargo was holding insurance proceeds on June 22, 2016.
Potential Award
Varies.
Under the terms of the class action settlement, Wells Fargo will offer cash payment to members of the Damages Class. The actual amount of compensation will be determined on a per account basis. It is anticipated that each Damages Class Member will receive a payment of at least $2,500.
Members of the Damages Class and the Declaratory Relief Class will benefit from Wells Fargo’s practice changes. Wells Fargo has agreed to revise its template payoff statement letter to disclose property insurance funds it holds.
This disclosure will be directly below the total amount due identified in the letter. In addition, Wells Fargo will add language to notify borrowers that the funds can be applied to the total amount due if they are not used for repairs to the property.
Proof of Purchase
N/A
FAQs
Claim Form Deadline
N/A. Class Members who do not opt out of the Wells Fargo settlement will automatically receive benefits.
Case Name
McLaughlin v. Wells Fargo Bank NA, Case No. 3:15-cv-02904-WHA, in the U.S. District Court for the Northern District of California
Final Hearing
3/9/2017
UPDATE: The court granted final approval of Wells Fargo Mortgage Payoff Statement class action settlement on April 11, 2017. Let Top Class Actions know when you receive a check in the comments section below or on our Facebook page.
Settlement Website
Claims Administrator
McLaughlin v. Wells Fargo Class Action
c/o Garden City Group (GCG)
P.O. Box 10315
Dublin, OH 43017-3915
1-877-351-3539
Class Counsel
Patricia Avery
Matthew Insley-Pruitt
WOLF POPPER LLP
Kristin J. Moody
BERMAN DEVALERIO
Defense Counsel
Peter J. Kennedy
Ashley L. Shively
REED SMITH LLP
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85 thoughts onWells Fargo Mortgage Payoff Statement Class Action Settlement
Is there any update on this suit for consumers?
When is this settlement due to pay? There is no information on this site that says whether the outcome was favorable. Please advise. Thank you.
I apologize. I do see that this case was settled. I am still wondering when we can expect payment. Thank you.
The court granted the settlement final approval on March 15, 2017. However, the court only granted in part the attorney’s fees and gave counsel for both parties until 3/22/17 to file a statement accepting the fees or requesting an additional evaluation of the fees. The case will not be completely settled until these fees are finalized by the court. Once this takes place, there will be a 30 day window in which appeals can be filed. So, there are some things that still need to happen with the court before the settlement is funded and claims are paid. Please keep checking Top Class Actions for updates. We will let our viewers know if any appeals are filed!
Any update if the court fees have been updated?
Thank you for responding. I appreciate it! Will keep checking back.
Loan with them since 2011 and I just sold my home in Oct 2016 not sure if I qualified. can you call me at 206 841- 1136 Thanks
I believe that I qualify and hadn’t heard anything about this – please e-mail me. Thank you!
You’ll need to contact either the settlement administrator or class counsel to verify you are a class member. The settlement website has a “Contact Us” section with contact information. Good luck!
I qualify, please contact me at my email address.
You’ll need to contact either the settlement administrator or class counsel to verify you are a class member. The settlement website has a “Contact Us” section with contact information. Good luck!
I want to know how I can speak to someone I have wellsfargo now had it for years was contacted by attorneys years ago but had family health problem at the time never got to reach out to attorney would like to be contacted 412-798-3916
I believe that I am qualify. I have Mortgage with Wells Fargo for many years now. I believe I must have received mortgage payoff statement from Wells Fargo. Here is 281 821 1557. Thanks
You’ll need to contact either the settlement administrator or class counsel to verify you are a class member. The settlement website has a “Contact Us” section with contact information. Good luck!
My Wells Fargo mortgage was from 2007 to 2014 until I sold my house. I believe I qualify. Contact me at 423-779-6996
You’ll need to contact either the settlement administrator or class counsel to verify you are a class member. The settlement website has a “Contact Us” section with contact information. Good luck!
WELLS FARGO HAS FAILED TO SHOW THREE PAYMENTS MADE ON THEIR STATEMENT IN AMOUNTS OVER 250,000.00
LOAN IS STILL PENDING
ALSO THEY HAVE NOT SHOWN FORCED PLACED INSURANCE
WE ARE IN LITIGATION
I believe that I may qualify. Could you please contact me? Thank you.
Reply