tl;dr
A $19.5 million class-action settlement will pay California residents up to $5,000 for unauthorized call recordings by a Wells Fargo vendor, highlighting privacy law battles and corporate accountability.
**Wells Fargo Customers to Receive Up to $5,000 in Class Action Settlement Over Unauthorized Call Recordings**
A major U.S. bank and its affiliates are set to distribute millions of dollars to California customers as part of a newly approved class action settlement. The payments, which could reach up to $5,000 per eligible recipient, stem from a lawsuit alleging illegal phone call recordings by a third-party vendor linked to Wells Fargo.
The $19.5 million settlement, approved in May, resolves claims against The Credit Wholesale Company, Inc., a vendor for Wells Fargo and Priority Technology Holdings. The lawsuit accused Credit Wholesale of recording phone calls to California residents without their consent, violating the California Invasion of Privacy Act (CIPA). Notably, the settlement does not include an admission of wrongdoing by the parties involved.
### Who Is Eligible?
Individuals and businesses in California who received calls from Credit Wholesale between **October 22, 2014, and November 17, 2023**, may qualify for compensation. Eligible claimants will receive payments on a per-call basis, with each recorded call valued at approximately **$86**.
### Automatic Payments and Compliance Measures
Approved claimants will automatically receive their payments, eliminating the need for additional claims submissions. The settlement also mandates that Credit Wholesale disclose future call recordings at the start of each phone call, ensuring transparency for consumers.
### Background of the Lawsuit
The legal action centered on allegations that Credit Wholesale unlawfully intercepted and stored customer calls, infringing on privacy rights under CIPA. The settlement highlights the growing scrutiny of third-party vendors in the financial industry, as companies face increasing pressure to adhere to strict data privacy regulations.
Wells Fargo, which has not admitted liability in the case, has not yet commented on the settlement’s implications for its operations. However, the agreement underscores the importance of vendor oversight in protecting customer data.
As the payments are distributed this month, affected Californians are encouraged to monitor their accounts for the automated disbursements. The case serves as a reminder of the legal and financial risks associated with unauthorized data practices, even when conducted by external partners.
This settlement marks another chapter in the ongoing debate over privacy protections in the digital age, with consumers increasingly holding corporations accountable for their data-handling practices.