Plaid must pay $58 million to users of Venmo, Robinhood and other apps
It reportedly collected "more financial data than was needed" from users.
Even if you've never heard of a company called Plaid, they may owe you part of a multi-million dollar lawsuit settlement, Fast Company has reported. Plaid, which connects consumer bank accounts to services like Venmo, Robinhood, Coinbase and other apps, was accused of collecting excessive financial data from consumers. While denying any wrongdoing, it agreed to pay $58 million to all consumers with a linked bank account to any of its approximately 5,000 client apps.
The lawsuit accused Plaid of collecting "more financial data than was needed from users." It also claimed that the company obtained users' bank login information via its own "Plaid Link" interface, "which had the look and feel of the user’s own bank account login screen," according to the settlement website. On top of the $58 million payout, the company was forced to change some of its business practices.
Millions of people use apps linked to Plaid, so any payout might be pretty slim. Still, if you're a US resident who had a bank account connected to the app between January 1st, 2013 and November 19th, 2021, you may qualify to receive a claim. For more, see the settlement site's FAQ.
You may have already received an email about the lawsuit, or you can check the settlement's search section to see if you've used an app that qualifies. In any case, you have until April 28th, 2022 to submit your claim.
