The COVID-19 Forbearance Settlement of $1.3 million is a case that many Wells Fargo customers will be keenly following up to the close. The case is founded on claims that Wells Fargo and the HSBC Bank USA mailed confusing or misleading letters to borrowers regarding the fate of their missed mortgage installments at the expiry of their loan repayment period. Though the total settlement is less than the giant 185 million national unauthorized forbearance suit settled in 2025, this particular 1.3 million fund is much more focused and provides an easy way to the compensation of a particular group of homeowners.
Who is eligible to Get the 1.3M Settlement?
The eligibility of such a particular payout is tightened based on geography and timing. You can qualify as a borrower of a Wells Fargo home mortgage account where both the property and the mailing address are located in West Virginia. Also, you should have been included in the COVID-19 forbearance program and have been sent a letter by the bank between March and December 2020 that addressed the impact of the missed payments. It is guessed that there are around 2,010 accounts that fit the requirements. The settlement class is a narrow category, and therefore members of this category will be in a position to receive a larger individual payment in comparison to national class actions which involve millions of members.
The amounts of compensation and payments expected
When you are included in this group, then you will not be required to make any formal claim form to get the basic payment- it is meant to be automatic. It is estimated now that each qualified account will be given about 400. Nonetheless, it is merely an estimate, the end figure might be a little more or less depending on how many people did not opt in and the ultimate administrative expenses approved by the court. In cases where households suffered serious economic injury, e.g. wrongful foreclosure or credit damage owing to the deceptive letters, there were different time constraints to seek further damage, which could considerably rise that 400 bottom.
Key Deadlines and 2026 Timeline
The opt-out or objection period on the settlement ended on December 22, 2025. It is necessary to say that in case you qualify and failed to act, you are now officially included in the settlement and you have also forfeited your personal right of action against Wells Fargo in this particular issue. The Final Approval Hearing is the most significant date on the calendar, and it is planned to hold it on February 20, 2026. In this hearing, the judge is going to either issue the final green light to the settlement and the payout plan or not. Assuming approval, the checks will be mailed 30-60 days after the hearing, with an approximate time of delivery in late Spring 2026.
Wider Exploration: $185 Million Case Nationwide
One should not mix the case of the 1.3 million of West Virginia with the 185 million national settlement (Case No. 2:20-cv-03664) that will end in 2025. The other larger case involved Wells Fargo putting 300,000 customers in forbearance without their permission. That case was settled at a rate of 50 million Euros starting March 2025. Unless you are a client of Wells Fargo in West Virginia, you must have been part of that settlement group that was bigger. A more recent resolution (2026) is open to those who received false information on the termination of their forbearance period.
The follow up steps of affected borrowers
In case you think you are one of the 2,010 qualified account owners, then the initial thing that you should do is to make sure that your mailing address is current with Wells Fargo or the settlement administrator. The payment is automatic and therefore a check would be sent to the last address on the file. In case you relocated since 2020, you are to go to the official settlement web site, KirkpatrickWVHomeMortgageSettlement.com, or call the administrator at 877-768-7830 and give your new address. The only way to make sure that your $400 cheque will not be lost in the mail is to update your contact details.
Settlement Data Summary
| Category | Details |
| Total Fund | $1.3 Million |
| Est. Per Account | ~$400 |
| Eligibility Area | West Virginia (Property or Address) |
| Final Hearing | February 20, 2026 |
Frequently Asked Questions
1. Should I be claiming the payment of the amount of 400?
No. The payment will be automatic in case you meet the requirements (West Virginia address + letter received in 2020). All you had to do was to make a claim in case of an additional compensation of certain damages.
2. Is it comparable to the scandal with the unauthorized account?
No. This is solely concerning COVID-19 mortgage forbearance. The illegal accounts (deceptive credit cards/checking) belonged to another, older more multi-billion settlement.
3. What will happen when I am no longer a customer who has that mortgage with Wells Fargo?
Even after you have paid the loan or sold the house, you are still qualified to get the payment as long as you had the mortgage and are in the forbearance during the 2020 window.
Disclaimer
The information is supposed to be informative. You may also refer to the official sources at KirkpatrickWVHomeMortgageSettlement.com or WellsFargo.com, we will seek to make sure our information is accurate to everyone.
