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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.
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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
I never received any payment either or information regarding payment
Has anyone received any payment for this?
I also havent received anything via mail or email regarding this. I did just send an email to
minsley-pruitt@wolfpopper.com as listed by class action for contact. I can follow up once i hear back from them. I know that i qualified as we paid off our previous house back in 2011 and had received many of those stubs.
I emailed Minsley-Pruitt, as well. I truly think this whole thing is one giant scam. I don’t know what or why, but nobody has received a check that I know submitted a claim. Nothing seems quite right.
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.
How do we know if we will be receiving a check?
You probably won’t. Contacting the attorneys gets you nowhere, either. They don’t respond. This whole class action was a scam. The only people who got anything were the attorneys, if this CA existed at all.
It is now July? How long is this going to take? I just feel like this has to be a scam. We haven’t heard a single word from anyone except through this page. It’s just one delay after another.
The settlement website states that checks were mailed on 6/7/17. You should contact the settlement administrator with any questions about the status of your claim: http://www.mortgagepayoffstatementclassaction.com/index.
And yet there isn’t a single person on here who claims to have received a check, only people who should have received one but hasn’t. Doesn’t that make you even a little suspicious?
Contacting BBB.
Contacting BBB and Top Class Actions. Someone got paid but the money didn’t trickle down. NOT HAPPY!
This is out of control. I’m reporting this to the Better Business Bureau and to Top Class Actions. Something’s not right about this and there has been NO communication. Someone got paid but it wasn’t us!
The settlement was granted final approval on 4/11/17. There were not any appeals filed, which is good news. The settlement became Effective on approximately 5/15/17. The settlement agreement states that within 21 days of the Effective Date, Wells Fargo will fund the class fund. This means that the funds to pay claims will not even be available until sometime in the first part of June. The settlement agreement states that within 14 days of the funding (or at a later time if needed), the settlement administrator will mail settlement checks. So, it’s looking like it would be estimated that checks will mail sometime at the end of June. A status report is due to the court by 8/7/17. We understand it can be very frustrating waiting for settlement checks to be issued. If you are not receiving a response from the settlement administrator or class counsel, you can also write a letter to the judge. Please keep checking Top Class Actions for updates. We will let our viewers know as soon as we learn that checks are in the mail.
Any updates on this?
I’m beginning to think this class action lawsuit is a scam in itself. This settled on March 9. Payout should not take more than six weeks. We are now into eight weeks without even a notice or update on where the suit stands. Can you provide any information? We don’t even know if we qualified, even though we submitted paperwork about our mortgage to the attorney listed. There has been no communication about this at all.
Is there any update on this class action for consumers? It’s taking awhile.