Wells Fargo is facing a hefty payout after a class-action lawsuit revealed that its sales calls were secretly recorded for almost a decade. The bank, along with two partners, will shell out a total of $19.5 million to settle the case.
Millions in Payouts for Secret Recordings
The settlement covers individuals and businesses whose calls were recorded without their knowledge. The Credit Wholesale Company, an independent sales organization working for Wells Fargo and Priority Payment Systems, is accused of making these recordings. These calls were made to set up sales appointments for credit card processing equipment and services.
The lawsuit, filed in October 2023, alleged that these recordings violated California’s Invasion of Privacy Act. The minimum payout per affected call is estimated at $86, but could reach $5,000 depending on the number of claims. An additional $200,000 will cover administrative costs.
Changes for The Credit Wholesale Company
Besides the financial penalty, The Credit Wholesale Company must also change its practices. They’re now required to disclose upfront when recording calls with California businesses.
Claim Deadline Approaching
The court gave preliminary approval to the settlement on January 24th, with final approval scheduled for May 20th. Those who received calls from the Wells Fargo service provider between October 22, 2014, and November 17, 2023, have until April 11th to file a claim.
