HSBC Call Recording Class Action Settlement Will Pay Up to $6.5M

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HSBC Card Services Inc. has agreed to a proposed class action lawsuit settlement of up to $6.5 million after being accused of recording customers’ telephone conversations without their knowledge or consent.

The call recording class action lawsuit was filed by California plaintiffs Gail Medeiros, Tracy T. Bomberger, Peter Morrissey, and Julie Pulatie after they alleged that HSBC installed recording equipment into their phone lines beginning in 2009 in an effort to record every phone conversation without informing their customers. The plaintiffs believe the phone conversations of at least 866,000 HSBC customers were recorded.

Medeiros claims she started receiving calls, including ones to her cell phone, from HSBC in which she divulged personal material including her Social Security number and private financial information. Medeiros states she was never informed nor did she consent to having her conversations recorded by HSBC. Bomberger, Morrissey, and Pulatie all allege similar interactions with HSBC.

The plaintiffs claim this act is a violation of California Penal Code § 632 which states “[e]very person who, intentionally and without the consent of all parties to a confidential communication, by means of any electronic amplifying or recording device, eavesdrops upon or records the confidential communication.”

The HSBC class action lawsuit further alleged that the company violated California Penal Code Section 632.7 by recording cell phone conversations without the plaintiffs’ consent.

Both parties attempted an Early Neutral Evaluation Conference which was unsuccessful at resolving their disputes but later agreed to a private mediation. Judge Leo Papas assisted in the day-long mediation session in which a potential class action settlement was reached between HSBC and the plaintiffs.

While HSBC still denies any wrongdoing or that they violated any laws, the company did agree on a proposed settlement of a minimum of $4.5 million and a maximum of $6.5 million. The parties are asking the court to examine the proposed HSBC settlement agreement to determine if it is “fair, reasonable, and adequate.”

If approved, the HSBC call recording class action settlement would be open to potential Settlement Class Members who are California residents who received a call between March 23, 2009 and May 1, 2012 from or on behalf of HSBC Card Services Inc. and whose call was recorded or monitored by or on behalf of HSBC.

The lead plaintiffs state they have developed a plan in order to reach well over 80 percent of potential Class Members, if the court approves the class action settlement. The plaintiffs claim they will notify via email or mail, all HSBC California customers in addition to sending out notices through newspapers, magazines and websites.

The plaintiffs are represented by Joshua B. Swigart and David J. McGlothlin of Hyde & Swigart, Abbas Kazerounian of Kazerouni Law Group, and Todd M. Friedman of the Law Offices of Todd M. Friedman, P.C.

The HSBC Call Recording Class Action Settlement is Medeiros, et al. v. HSBC Card Services Inc., Case No: 3:14-cv-01786-JLS-MDD in the U.S. District Court for the Southern District of California.

UPDATE: On Aug. 26, 2016, HSBC agreed to pay $13 million to settle Medeiros’ class action and two other lawsuits all with similar accusations. 

UPDATE 2: The California HSBC Call Recording Class Action Settlement is now open! Click here to file a claim. 

UPDATE 3: On Feb. 28, 2018, Top Class Actions viewers started receiving checks in the mail from the HSBC call recording class action settlement worth as much as $53.34. Congratulations to everyone who filed a claim and got PAID!