Wells Fargo, a leading multinational financial institution, is facing a class action lawsuit over allegations of illegal call recording. The lawsuit claims that the company and its affiliates recorded phone calls without obtaining explicit consent, violating California privacy laws.
Allegations Against Wells Fargo
Wells Fargo, along with three other defendants, has been accused of recording phone calls without informing recipients, in violation of the California Invasion of Privacy Act (CIPA). This law prohibits recording confidential communications without prior consent.
The affected individuals and businesses received calls from The Credit Wholesale Co. Inc. between October 22, 2014, and November 17, 2023. Plaintiffs argue that these calls were recorded without their knowledge, making them unlawful under CIPA.
Wells Fargo and Priority Technology Holdings Inc. had hired The Credit Wholesale Co. to sell processing equipment, services, and credit cards. While none of the defendants have admitted wrongdoing, they have agreed to a $19.5 million settlement to resolve the allegations.
How Much Can a Class Member Claim?
Under the settlement terms, eligible class members can claim a cash payment for each call they received during the specified period. The estimated payout is $86 per call, with a maximum claim limit of $5,000 per individual or business.
In addition to monetary compensation, The Credit Wholesale Co. has agreed to stop recording calls to California businesses without disclosure. Moving forward, if a call is to be recorded, the company must inform recipients at the beginning of the conversation.
Breakdown of Settlement Fund Distribution
The $19.5 million settlement will be allocated as follows:
| Category | Amount Allocated |
|---|---|
| Claimant Compensation | Varies (up to $5,000 per person) |
| Settlement Administration Fees | Up to $200,000 |
| Attorney Fees and Legal Costs | Up to $6.5 million |
| Incentive Awards for Class Representatives | $7,500 each |
| Remaining Funds | Distributed among approved claimants |
Eligibility and Important Deadlines
To qualify for compensation, individuals or businesses must have received a phone call from The Credit Wholesale Co. between October 22, 2014, and November 17, 2023, while residing in California.
How to File a Claim
Claimants must provide either:
- The phone number or business name used to receive the call
- A Claim ID and PIN Code from the settlement notice they received
If a claimant is eligible for more than $600, they must submit a W-9 tax form to receive their payment. Approved claimants will receive a mailed check at their provided address.
Key Dates to Remember
- April 4, 2025 – Deadline to file an objection or request exclusion from the settlement
- April 11, 2025 – Final day to submit a claim (online or by mail)
- May 20, 2025 – Final approval hearing for the settlement
- 52 days after approval – Expected date for payments to be issued
Final Thoughts
The $19.5 million Wells Fargo settlement provides compensation for affected individuals and businesses, while also ensuring future compliance with California privacy laws. If you qualify for a claim, be sure to submit your information before the deadline to receive your payout.
For further details, visit the official settlement website or consult a legal professional if you have questions about your eligibility.
FAQs:
What is the Wells Fargo class action lawsuit about?
The lawsuit alleges that Wells Fargo and its affiliates recorded phone calls without consent, violating California privacy laws.
How much can I receive from the settlement?
Eligible claimants may receive $86 per call, with a maximum payout of $5,000.
How do I file a claim?
You can file a claim online through the settlement website or submit a printed form by mail.