Harlow, et al. v. Wells Fargo Bank

A Bankruptcy Court authorized the Notice to you because you have a right to know about the Settlement of the class action Lawsuit and about your options before the District Court decided whether to grant final approval of the Settlement. The Notice explains the lawsuit, the Settlement, and your legal rights. The Lawsuit is known as Harlow, et al. v. Wells Fargo Bank, N.A. The Lawsuit was filed and was pending in the United States Bankruptcy Court for the Western District of Virginia, under Adversary Proceeding No. 20-07028. The Settlement was approved on October 11, 2024, by the United States District Court for the Western District of Virginia. Roanoke Division, under Case No. 7:24-cv-00424. All terms contained in the Notice and this website have the same meanings as in the Settlement Agreement, which is available here.

In the earliest days of the COVID-19 pandemic, when many customers were expressing concern about financial hardship and their ability to make their next mortgage payment, Wells Fargo made a decision to provide mortgage forbearances to certain customers who had made an inquiry or expressed hardship but had not explicitly requested a forbearance. A forbearance temporarily suspends a customer’s obligation to make payments on their mortgage. For certain customers in Chapter 13 bankruptcy, Wells Fargo also filed notices of forbearance in the individuals’ Chapter 13 bankruptcy cases that stated that customers had requested forbearance or that Wells Fargo had provided the customers with a temporary suspension of their mortgage payments. However, some of the customers who received payment forbearances did not request or want them. Plaintiffs allege that Wells Fargo placed customers into forbearance without informed consent and that Wells Fargo’s actions harmed certain customers specifically and the bankruptcy process generally. Wells Fargo denies any and all allegations of wrongdoing and does not admit or concede any actual or potential fault, wrongdoing, or liability in connection with any facts or claims that have been or could have been alleged in the lawsuits or in any similar action. The operative Complaint filed in the lawsuit, which provides greater details about Plaintiffs’ claims, can be viewed here.

Class action lawsuits allow a large number of people with a common claim to sue collectively while being represented by members of the group called the “Class Representatives.” In this case, the Class Representatives have brought the lawsuit on behalf of themselves and others with similar claims. Together, all of the individuals with similar claims (with the exception of those who request exclusion or “opt out” from the Class) are referred to as “Class Members.”

Plaintiffs and Class Counsel believe this Settlement provides a fair and reasonable resolution of the claims asserted in the lawsuit for the benefit of the Class.

The Court has not ruled in favor of either the Plaintiffs or Wells Fargo. Instead, both sides agreed to a Settlement that they believe is a fair, reasonable, and adequate compromise of their respective positions. The parties reached this Settlement after litigating the case for over three years, conducting formal and informal discovery, and with the assistance of an experienced neutral mediator.

By agreeing to the Settlement, the parties avoid the costs, delay, and uncertainty of further litigation, and Class Members receive the benefits described in the Notice and this website.

Wells Fargo denies any wrongdoing and the Settlement shall in no event be construed or deemed to be evidence or an admission or concession on the part of Wells Fargo with respect to any claim or of any fault, liability, wrongdoing, or damage.

The “Settlement Class” or “Class” means all persons in the United States who: (a) had a mortgage serviced by Wells Fargo that was placed into a COVID mortgage forbearance between March 1, 2020, and December 31, 2021 (“At-Issue Forbearance”); (b) were a debtor or the Co-Borrower of a debtor in a Chapter 13 bankruptcy case on the date that the mortgage was placed into the At-Issue Forbearance; and (c) are not Wells Fargo’s officers, directors, and employees, Counsel for Wells Fargo, or Class Counsel.

The Settlement Class is broken into two (2) subclasses.

Subclass 1 is the group of all of the Settlement Class Members (a) who received an At-Issue Forbearance as a result of a Proactive Wells Fargo Business Decision or Servicing Error, and (b) for whom Wells Fargo filed a Notice of Forbearance in their Chapter 13 bankruptcy case.

“Proactive Wells Fargo Business Decision” means:

1. Customers who requested forbearance on one mortgage account between March 9, 2020 and April 7, 2020, and were provided a forbearance on one or more other mortgage accounts;
2. Customers who contacted Wells Fargo by phone between March 9, 2020, and March 31, 2020, expressing COVID-19 impact and who were provided a forbearance without an express request;
3. Customers who had a pending application in the home preservation process as of March 25, 2020, and who were provided a forbearance without an express request; and
4. Customers who filed a document with the bankruptcy court that Wells Fargo interpreted as expressing COVID impact or requesting payment relief between March 18, 2020, and June 8, 2020 and who were provided a forbearance without an express request.

“Servicing Error” means that Wells Fargo previously determined that the forbearance was provided in error.

“Notice of Forbearance” means any notice of temporary forbearance that Wells Fargo filed in the Chapter 13 bankruptcy cases of certain Class Members on either the bankruptcy case docket or the claims docket regardless of the format of the notice or means of filing.

Subclass 2 is the group of all of the Settlement Class Members who are not members of Subclass 1.

Under the Settlement, Wells Fargo has agreed to establish a Settlement Fund totaling $15 million ($15,000,000.00) to provide the following benefits to Class Members as consideration for the resolution and release of the Class Members’ claims:

• Subclass 1 Members received payment of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) per mortgage account that received an At-Issue Forbearance.
• Subclass 2 Members received payment of Five Hundred and 00/100 Dollars ($500.00) per mortgage account that received an At-Issue Forbearance.
• Class Members who feel that being placed into forbearance caused them to suffer damages in excess of the Subclass 1 or Subclass 2 payments can submit a claim for additional compensation from the Claims Fund. The Claims Fund will be maintained by the Claims Administrator and funded with the amounts remaining in the Settlement Fund after accounting for the payments to Subclass 1 and Subclass 2 Members, the attorney fee and expense awards approved by the District Court, the service awards approved by the District Court, and the Claims Administrator’s costs and expenses. In the event that the Claims Fund does not contain sufficient funds to pay all valid claims for additional compensation received by the Claims Administrator, the claim amounts shall be reduced and paid on a pro rata basis.

The Settlement Fund will also be used to pay fee and expense awards to Plaintiffs’ Counsel approved by the Court; service awards to the Class Representatives approved by the Court; and the Claims Administrator’s costs and expenses to administer the Settlement. Any money remaining in the Settlement Fund after the above-referenced payments shall be distributed pro rata to all Class Members, unless each such Class Member would receive less than $10, in which case the remaining amounts will be distributed to a cy pres recipient approved by the Court.

In return for the benefits in this Settlement, all Settlement Class Members will release Wells Fargo from the claims discussed in the Settlement Agreement, and the lawsuit will be dismissed with prejudice, among other terms.

Subclass Members did not need to take any action to receive the automatic payment referenced in FAQ 6. On November 25, 2024, the Claims Administrator mailed settlement checks automatically to Subclass Members who did not opt out of the Settlement.

If you feel that you suffered damages in excess of the automatic payment that you received, you can ask for additional money by completing and returning the Claim Form by January 7, 2025.

The Claim Form may be submitted here or by mailing it to the Claims Administrator at the following address:

Harlow, et al. v. Wells Fargo Bank
P.O. Box 5130
Portland, OR 97208-5130

You may also scan the QR Code on the Claim Form to complete and submit the Claim Form on your smartphone or tablet. If you mail the Claim Form, it must be postmarked no later than January 7, 2025, in order to be valid.

To ensure you receive your payment(s) promptly, you may update your address by sending an email to the Claims Administrator including your full name, previous address, and current address to info@WellsFargoBankruptcyForbearanceClass.com or by mail to the below address:

Harlow, et al. v. Wells Fargo Bank
P.O. Box 5130
Portland, OR 97208-5130

If you did not "opt out” or request exclusion from the Settlement, then you will release certain claims against Wells Fargo as described in FAQ 18.

The deadline to request exclusion or to "opt out" from the Settlement was on September 9, 2024.

No. Unless you requested exclusion from the Settlement, you will give up the right to sue Wells Fargo, individually or as part of a class action, for the Class Released Claims that this Settlement resolves as described in FAQ 18 below.

No. If you excluded yourself from the Settlement, you will not be eligible to receive a payment from the Settlement Fund.

Yes. The Court has appointed attorneys at the law firms Kellett & Bartholow PLLC, Giles & Lambert, P.C., and Limon Law Office to represent you and the other Class Members as “Class Counsel.” You can contact Class Counsel at the address or phone number listed below. They are:

Kellett & Bartholow PLLC
Theodore O. Bartholow, III ("Thad")
Karen L. Kellett
11300 N. Central Expy.
Suite 301
Dallas, TX 75243
1-214-696-9000

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.

Class Counsel will apply to the Court for an award of attorneys’ fees and costs to compensate them for their legal services and expenses incurred in this matter. The application for an award of attorneys’ fees and costs will be posted to this Settlement Website. Pursuant to the terms of the Settlement, Class Counsel intends to request an award up to thirty-three percent (33%) of the Settlement Fund in legal fees, as well as reimbursement of their reasonably incurred expenses.

Any fee and expense award must be approved by the Court and will be paid out of the Settlement Fund.

Class Counsel will file an application for service awards to be paid to each of the Class Representatives in recognition of the time and effort they provided in the lawsuit on behalf of the Class. The application for service awards will be posted to this Settlement Website. Pursuant to the terms of the Settlement, Class Counsel intends to request a Service Award of up to $12,500 for each Class Representative.

Any service awards must be approved by the Court and will be paid out of the Settlement Fund.

The deadline to submit written Objections was on September 9, 2024.

You can only object to the Settlement if you are a Class Member. Requesting exclusion from the Settlement is notifying the Court that you do not want to remain a Class Member. If you exclude yourself, you have no basis to object because the Settlement no longer affects you.

Each Class Member who does not request exclusion releases Wells Fargo from all claims asserted in the lawsuit and from any and all past and/or present claims, lawsuits, and complaints of any kind resulting from, arising from, or relating in any way to the forbearances that Wells Fargo provided to the Class Members.

This is a summary of the settlement release. You can find the full settlement release in the Settlement Agreement, which is available here.

The District Court approved the Settlement on October 11, 2024, in the courtroom of Judge Robert S. Ballou, US District Court, Poff Federal Building, 210 Franklin Road S.W., Roanoke, VA 24011.

No. Attending the hearing was not required. The hearing took place on October 11, 2024.

The Notice is a summary of the proposed Settlement. More details regarding the terms of the Settlement can be found in the Settlement Agreement posted on this Settlement Website. Updates, including any modifications to the schedule or the Settlement Agreement, will be posted on this Settlement Website.

You may also contact the Claims Administrator by calling the toll-free number, 1-844-929-4063, or by writing to

Harlow, et al. v. Wells Fargo Bank
P.O. Box 5130
Portland, OR 97208-5130

Or by email to info@WellsFargoBankruptcyForbearanceClass.com

You may also contact Class Counsel at the address or phone number listed below:

Kellett & Bartholow PLLC
Theodore O. Bartholow, III ("Thad")
Karen L. Kellett
11300 N. Central Expy.
Suite 301
Dallas, TX 75243
1-214-696-9000