Always be on the lookout for companies with snappy one-word names. They might just be (allegedly) stealing your personal/financial information.
Financial service company Plaid has settled a $58 million class action lawsuit over allegations that the company was obtaining a lot of unnecessary user data, including users’ bank login information, for nearly a decade. Plaid works to connect thousands of apps to users’ bank accounts including Venmo, Stripe, and Chime, so there have been plenty of opportunities for plaid to have found their way into people’s bank accounts.
The complaint further alleges that Plaid deceived users into unknowingly typing their online banking username and password directly into Plaid’s “Plaid Link” interface since the interface had the “look and feel of the user’s own bank account login screen.”
Plaid denies any deceptive practices, but will also pay out $58 million to claimants who used Plaid-accessed financial accounts between January 1, 2013 and November 19, 2021. If you want to see if you qualify, go to https://www.plaidsettlement.com to see if any third-party apps connected to your bank account use Plaid for said connection.
In addition to the money, Plaid has agreed to store less user data than before, delete some of the data that was collected during the class period, and improve the Plaid Link interface.
This settlement has yet to be fully approved by the court, a process that could take several months. Make sure to stay updated on all the goings-on in the class action world by checking back in on Certificate Clearing Corporation. And make sure to contact us if you have any questions about this settlement.