$19.5M Settlement Ends Wells Fargo California Phone Call Recording Lawsuit

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A $19.5 million settlement has been reached to resolve a proposed class action lawsuit wherein two small businesses claimed they were secretly recorded during telemarketing calls made by the Credit Wholesale Company, Inc. on behalf of Wells Fargo, Priority Technology Holdings and Priority Payment Systems.

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The court-approved website for the class action settlement can be found at CallRecordingClassAction.com.

The $19,500,000 deal covers a class that includes all businesses and individuals who received at least one telephone call from the Credit Wholesale Company, Inc. in California between October 22, 2014 and November 17, 2023.

Only class members who submit a valid claim form online or by mail by April 11, 2025 will be eligible to receive a cash payout from the deal.

According to the settlement agreement, class members who file a timely, valid claim form are entitled to a cash payment for each qualifying call they received. Although final payout amounts will depend on how many valid claims are submitted, the minimum payment per call is estimated to be $86, though this figure “could be as high as $5,000,” the settlement website states.

Head to this page to file a claim form online or download a personalized claim form to print and return by mail. You will need your unique claim number and PIN, which can be found on the settlement notice you may have received in the mail.

Per the site, the postcard notice also includes a claim form that you can complete and return to the settlement administrator.

The Credit Wholesale Company call recording settlement was granted preliminary approval by United States Magistrate Judge Lisa J. Cisneros on January 24, 2025. It is now up to the court to decide whether to grant final approval to the terms of the deal at a hearing on May 20, 2025.

Wells Fargo settlement rebates will be distributed to eligible class members only if the deal is ultimately approved and after any appeals are resolved.

The lawsuit against Wholesale, Wells Fargo and Priority alleged that the credit card processing company recorded certain calls to California businesses without disclosing at the outset of the call that it was being recorded. The class action suit contended that the calls, whose purpose was to set appointments to sell equipment and services on behalf of the bank and its affiliates, violated California’s Invasion of Privacy Act.

As part of the settlement, Wholesale has agreed to no longer record such calls to California businesses unless it is disclosed upfront, the website shares.

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