Wells Fargo reaches $19.5 million lawsuit settlement, $87 payment confirmed for eligible individuals

Wells Fargo, a well-known financial institution, is now facing a lawsuit along with three other defendants over allegations of unauthorized call recording that violated California state laws.

The lawsuit stems from phone calls made by The Credit Wholesale Co. Inc. between October 22, 2014, and November 17, 2023. The plaintiffs claim that these calls were recorded without their knowledge or consent, which goes against the California Invasion of Privacy Act. This act prohibits recording confidential communications without consent, and phone calls fall under this category.

Wells Fargo Bank N.A. and Priority Technology Holdings Inc. enlisted The Credit Wholesale Co. Inc. to handle sales of processing equipment, services, and credit cards. While none of the defendants have admitted wrongdoing, a settlement of $19.5 million has been agreed upon to resolve the claims regarding call recording.

According to the settlement terms, eligible class members can claim a cash payment for each call they received from The Credit Wholesale Co. during the specified period. The estimated payment per call is $86, with a maximum claim of up to $5000 for multiple calls. Furthermore, The Credit Wholesale Co. has agreed to stop recording appointment setting calls to California businesses unless explicitly disclosed at the beginning of the call.

In typical class action lawsuit fashion, a portion of the $19.5 million settlement will cover fees for settlement notices and administration, capped at $200,000. An additional $6.5 million is allocated for attorney fees and legal costs, while $7,500 incentive awards will be given to class representatives. The rest of the settlement amount will be distributed among approved claimants.

Individuals and businesses in California who received calls from The Credit Wholesale Co. between October 22, 2014, and November 17, 2023, are eligible to make a claim in this lawsuit. Claimants need to provide their phone number or business name used during the calls, or they can submit their unique Claim ID and PIN Code included in the notice they received.

It is crucial for eligible class members to take note of the important dates and follow the instructions provided to claim their share of the settlement. This lawsuit serves as a reminder of the importance of protecting individual privacy rights and ensuring legal compliance in all forms of communication.