Wells Fargo zapped with 7.6 million in fines

District Attorney Gregory D. Totten announced today that the Ventura County District Attorney’s Office, along with the Los Angeles, Riverside, Alameda and San Diego District Attorneys’ Offices and the California State Attorney General’s Office, has settled a $8,500,000 civil enforcement action against Wells Fargo Bank alleging violations of California’s privacy laws. The complaint, filed in Los Angeles Superior Court, alleges that Wells Fargo violated Penal Code sections 632 and 632.7 by failing to timely and adequately disclose its automatic recording of phone calls with members of the public.

California law requires that each party to a confidential conversation must be advised at the outset if a call is being recorded, so that he or she can object or terminate the call if he or she does not wish to be recorded. Once notified of the alleged deficiencies in the recording disclosures, Wells Fargo worked cooperatively to implement changes in the bank’s policies nationwide.

Under the terms of the court approved judgment, Wells Fargo will pay civil penalties totaling $7,616,000 and will reimburse the prosecutors’ investigative costs of $384,000.  In addition to the above penalties and investigative costs, Wells Fargo will contribute $500,000 to two statewide organizations dedicated to advancing consumer protection and privacy rights.  Wells Fargo has also agreed to implement an internal compliance program to ensure that the policy changes are made.

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