Wells Fargo, one of the country’s most prominent financial institutions, has once again found itself in legal hot water — this time tied to a $19.5 million class action settlement over illegally recorded phone calls involving California consumers and small businesses.
The case revolves around The Credit Wholesale Company Inc., a third-party sales organization that partnered with Wells Fargo and Priority Technology Holdings Inc. to sell payment processing systems and merchant services. Between 2014 and 2023, the company allegedly recorded thousands of phone calls without obtaining prior consent, a direct violation of California’s stringent privacy laws.
While Wells Fargo has not admitted wrongdoing, it agreed to the multimillion-dollar settlement to resolve the allegations and avoid prolonged litigation. Affected individuals and businesses could receive up to $86 per call, with payouts potentially reaching $5,000 per call depending on the number of valid claims submitted.
The Allegations — Violating California’s Privacy Law
At the heart of the lawsuit is California’s Invasion of Privacy Act (CIPA), one of the strictest privacy statutes in the nation. Under CIPA Section 632, companies must inform all parties before recording a call. Failing to do so can result in civil penalties of up to $5,000 per violation.
Plaintiffs allege that The Credit Wholesale Co. routinely recorded conversations with both individuals and small business owners during sales calls for merchant processing services, card terminals, and other financial products — all without disclosing that the calls were being monitored or recorded.
The calls often involved appointment scheduling, sales pitches, or customer service inquiries. Many recipients claimed they were never told the conversation was being recorded, even though California law mandates clear notification.
“Recording a conversation without permission isn’t just bad ethics — it’s illegal in California,” said attorney Jacie C. Zolna of Myron M. Cherry & Associates, who represents the plaintiffs. “Our clients simply wanted transparency, and this case holds companies accountable to that standard.”
Settlement Terms and Payment Details
The total settlement fund of $19.5 million will be used to:
- Compensate class members affected by the unauthorized call recordings.
- Cover attorney fees, administrative expenses, and court costs.
- Implement future compliance measures to prevent further privacy violations.
After deductions, the estimated payout per person will depend on how many claims are approved. Early projections suggest average payments of around $86 per call, but if few people file, some could receive as much as $5,000.
For individuals or businesses that received multiple recorded calls, each qualifying call could result in a separate payment.
| Settlement Feature | Details |
|---|---|
| Total Settlement Amount | $19.5 million |
| Average Payment (Estimated) | $86 per call |
| Maximum Payment (if few claims) | Up to $5,000 per call |
| Eligible Call Period | Oct. 22, 2014 – Nov. 17, 2023 |
| Eligible Location | Calls made to California individuals or businesses |
| Claim Deadline | April 11, 2025 |
| Objection/Exclusion Deadline | April 4, 2025 |
| Final Approval Hearing | May 20, 2025 |
Payments will be distributed a few months after final court approval, assuming no appeals are filed.
Who’s Eligible to File a Claim
You may be eligible for a payout if:
- You lived in California when you received a call from The Credit Wholesale Company Inc. between October 22, 2014, and November 17, 2023.
- The call related to sales, service, or payment processing.
- You were not informed that the call was being recorded.
- You can verify your phone number or business name as the recipient.
Both individuals and businesses can qualify, as the CIPA applies to any party whose conversation was recorded without consent.
How to File a Claim
Filing is simple and can be done entirely online through the official settlement portal: www.CallRecordingClassAction.com
Steps to Submit a Claim
- Visit CallRecordingClassAction.com and click “Submit a Claim.”
- Fill out the form with your name, phone number, business name (if applicable), and address.
- Certify that you received one or more recorded calls from The Credit Wholesale Co. without notice.
- Submit your claim online or by mail before April 11, 2025.
Mailing Option
You can also print and mail your completed form to:
Settlement Administrator
P.O. Box 301132
Los Angeles, CA 90030-1132
For assistance, contact the settlement hotline at 1-888-733-1544 or email [email protected].
The Case and Court Proceedings
The case, Aguilar Auto Repair, et al. v. Wells Fargo Bank, N.A., et al. (Case No. 3:23-cv-06265-LJC), is being heard in the U.S. District Court for the Northern District of California.
A final approval hearing is scheduled for May 20, 2025, when Judge Lisa J. Cisneros will determine whether the settlement is “fair, reasonable, and adequate.”
If approved, payments could be distributed in summer or fall 2025.
The Legal Team
The plaintiffs are represented by Myron M. Cherry & Associates LLC, a Chicago-based firm specializing in consumer rights and class action cases. The lead attorneys include:
- Myron M. Cherry
- Jacie C. Zolna
- Benjamin R. Swetland
The firm has emphasized that beyond compensation, the case seeks systemic change in how companies handle call recordings.
Compliance Reforms
As part of the settlement, The Credit Wholesale Company Inc. has agreed to implement stronger compliance protocols:
- All future sales and service calls will include a pre-recorded consent notice.
- Call representatives will undergo mandatory privacy training.
- The company will maintain compliance logs to track and verify consent disclosures.
These changes are intended to prevent further CIPA violations and rebuild public trust.
Why This Case Matters
This settlement isn’t just about money — it’s about privacy rights in an era when nearly every business interaction happens over the phone. California’s CIPA law has become a national benchmark for privacy enforcement, and this case serves as a warning:
Even large institutions like Wells Fargo are not immune to liability when their affiliates violate consumer consent laws.
In a time of growing digital surveillance and data collection, the outcome reinforces the principle that transparency and consent are non-negotiable.
FAQs:
How much can I get from the Wells Fargo call recording settlement?
Most claimants will receive around $86 per call, but if fewer people file, payments could rise to $5,000 per call.
Who qualifies for the payment?
Anyone in California who received a call from The Credit Wholesale Company Inc. between 2014 and 2023 without being told it was recorded.
How do I file a claim?
Submit your claim online at CallRecordingClassAction.com or mail it to the administrator by April 11, 2025.
