Wells Fargo get $8.5 Million Slap on the Wrist Over Privacy Violations

Posted By CotoBlogzz

Rancho Santa Margarita, CA – The California Attorney General and five

district attorneys today announced a $8,500,000 settlement with Wells Fargo Bank over privacy violations.

As part of the settlement, Wells Fargo will pay civil penalties totaling $7,616,000 and will reimburse the prosecutors' investigative costs of $384,000. In addition, Wells Fargo will contribute $500,000 to two statewide organizations dedicated to advancing consumer protection and privacy rights.  

The civil complaint, filed in Los Angeles Superior Court, alleged that Wells Fargo violated sections 632 and 632.7 of the California Penal Code by failing to timely and adequately disclose its automatic recording of phone calls with members of the public.

In addition, the settlement agreement states that Wells Fargo must comply with California's standards for recording confidential communications between the bank and its customers by making clear, conspicuous, and accurate disclosures.  Wells Fargo has also agreed to implement an internal compliance program to ensure that the policy changes are made.

Once Wells Fargo was notified by investigators of the alleged deficiencies in its recording disclosures, the bank and its counsel worked cooperatively to implement changes in the company’s policies nationwide, without admitting liability