A major class action against Wells Fargo Bank, Priority Payment Systems, and Priority Technology Holdings reached final approval, resulting in a $19.5 million settlement. The lawsuit centered around allegations that telemarketing calls to California businesses and individuals were recorded without consent, a direct violation of the California Invasion of Privacy Act (CIPA).
The calls were made by The Credit Wholesale Company, Inc., which promoted Wells Fargo’s merchant processing services between October 22, 2014, and November 17, 2023. Affected individuals and businesses were allowed to submit claims until April 11, 2025, with potential payouts ranging from $86 per call to as much as $5,000, depending on the number of qualifying calls.
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What the Lawsuit Was About
The lawsuit alleged that The Credit Wholesale Company recorded phone conversations with potential customers in California without announcing that the calls were being recorded. These calls promoted card-processing and payment services on behalf of Wells Fargo and its partners.
California law requires all-party consent before recording any communication. The plaintiffs argued that the defendants failed to disclose recordings at the start of the calls, which breached the state’s privacy protection statutes.
Although the companies denied wrongdoing, they agreed to the settlement to avoid the cost and uncertainty of extended litigation. The settlement ensures financial compensation for affected individuals and businesses while implementing stricter future compliance requirements.
Settlement Terms and Coverage
The approved settlement totals $19.5 million, which covers all eligible claimants who received one or more qualifying calls. Each verified claimant receives a cash award determined by how many valid claims are filed.
Payments have started being disbursed after the May 20, 2025 hearing, provided no appeals delay the process. Only those who submitted claims by April 11, 2025 are eligible for a payout.
The settlement also commits the telemarketing company to change its practices. Going forward, any calls made to California businesses must clearly inform recipients that the conversation is being recorded.
Who Can Receive a Payment
Eligibility is limited to California-based businesses and individuals who received at least one call from The Credit Wholesale Company, Inc. between 2014 and 2023. The calls were related to the sale or promotion of merchant-service products offered on behalf of Wells Fargo Bank and Priority Payment Systems.
Claimants must have submitted a valid form online or by mail by the stated deadline. Those who received a mailed notice were provided with a unique claim number and PIN to file easily through the official settlement portal.
Once all claims are processed, the administrator will calculate payment values. The more valid claims submitted, the lower the per-claim amount will be, though the minimum remains approximately $86 per call.
Timeline and Deadlines
| Event | Date |
|---|---|
| Start of Recorded Calls | October 22, 2014 |
| End of Recorded Calls | November 17, 2023 |
| Claim Submission Deadline | April 11, 2025 |
| Final Court Approval Hearing | May 20, 2025 |
The court’s final decision will determine when payments are distributed. If no appeals are filed, eligible participants could begin receiving checks or direct deposits later in 2025.
How the Claim Process Works
To participate, claimants needed to verify their eligibility and file a claim form. This could be done online at the official website or by mailing a printed form to the settlement administrator’s address.
Class members were required to include identifying details, such as the business name or phone number that received the recorded calls. Each submitted claim was then verified against the telemarketing company’s call logs.
After approval, payments will be issued automatically. Claimants are advised to keep their contact information current with the administrator to ensure proper delivery of funds.
Expected Payout Amounts
Payments vary based on the total number of valid claims. Every verified class member is guaranteed a minimum cash value per call, estimated at $86, though some may receive larger payouts if they had multiple qualifying calls.
The total award per claimant is capped at $5,000. This upper limit ensures that funds are distributed fairly across all eligible participants while maintaining proportional compensation for the number of calls recorded.
Privacy Compliance and Future Changes
As part of the resolution, The Credit Wholesale Company agreed to adjust its telemarketing protocols to ensure that future calls comply with California’s consent requirements.
The new measures include immediate disclosure at the start of every recorded call and the maintenance of secure logs confirming that consent was obtained. These practices aim to prevent similar violations in the future and strengthen consumer trust.
Businesses operating telemarketing systems in California are now reminded to align their policies with state and federal privacy standards to avoid potential liability.
What Claimants Should Do Next
Eligible participants who have not yet received payment or confirmation have been encouraged to contact the settlement administrator through the contact information provided in their notice.
Claimants can still check their claim status using their unique claim number at the official settlement website. Those who changed addresses or banking details after filing were instructed to update their information promptly to ensure proper payment delivery.