$14.5M Wells Fargo Class Action Settlement Reached Over Debt Collection Calls

A $14.5 million preliminary settlement has been reached in a Telephone Consumer Protection Act (TCPA) class action lawsuit brought on behalf of millions of customers who alleged Wells Fargo Bank illegally called them on their cellphones to collect credit card debt.

The proposed Wells Fargo class action settlement motion, if approved, will resolve a class action lawsuit claiming the bank violated the Telephone Consumer Protection Act by making automated calls to alleged debtors without their consent. About 4 million consumers are considered Class Members and eligible to participate in the proposed class action settlement.

Lead plaintiff Lillian Frankilin filed the Wells Fargo TCPA class action lawsuit in August, claiming the financial institution called her multiple times on her cellphone in 2010 to collect an alleged debt on her credit card. The calls featured a prerecorded message and were made without Franklin’s consent, according to the lawsuit.

Approximately $3.6 million of the $14.5 million settlement fund will pay for attorneys’ fees and costs, with another $3 million paying for claims administrations. What’s left over, or about $8 million, is guaranteed to go to Class Members, no matter how few claims are submitted, according to the December 19 motion.

Though agreeing the to settlement to avoid court expenses and a jury trial, Wells Fargo continues to deny the allegations that it violated TCPA laws.

Unsolicited Phone Calls and the Telephone Consumer Protection Act

The Telephone Consumer Protection Act (TCPA) is the main federal law that seeks to curb unsolicited phone calls using an automatic telephone dialing system. Put as simply as possible, the TCPA bans many phone calls sent to a mobile phone using an autodialer. These calls are banned unless (1) you previously gave consent to receive the call or (2) the call is sent for emergency purposes. This ban applies even if you have not placed your phone number on the national Do-Not-Call list of numbers telemarketers must not call.

The law specifically states that each unsolicited phone call carries a civil fine of between $500 to $1,500 per call. Many of these calls are unwanted and unsolicited by the recipient. For cell phone users, the problems are not simple annoyances only.  Many cell phone carriers charge per received calls and the problem is amplified if the recipient is on a pre-paid cell phone plan.

The Wells Fargo TCPA Class Action Lawsuit is Case No: 3:14-cv-02349, United States District Court for the Southern District of California.

UPDATE: Instructions on how to file a claim for the Wells Fargo TCPA class action settlement are now available! Click here or visit www.FranklinWellsFargoTCPA.com for details.

UPDATE 2: On Apr. 30, 2016, Top Class Actions readers started receiving settlement checks worth as much as $71.16.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.

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