What is Plaid's $58 million settlement?
OAKLAND, Calif. (CN) — A federal court judge on Wednesday approved banking app Plaid's $58 million privacy class action settlement after consumers claimed the company had harvested and sold their financial data without consent.
When will the Plaid class action settlement be approved?
Final approval was granted for this class action settlement on July 20, 2022. EDITOR’S NOTE: This content has been sponsored and edited for clarity in collaboration with the sponsor. Plaid Inc. has agreed to pay $58 million to end class action lawsuit claims that it violated data privacy laws.
How much does it cost to settle a class action lawsuit?
The judge also ruled that the considerable cost for multiple attorneys on this lawsuit required paying a fee of $11 million. In November, the federal court preliminarily approved the settlement. Out of the approximately 98 million eligible class members, five submitted timely objections.
Are You entitled to extra money after a $58 million class-action settlement?
Well, we’ve got some good news and some bad news for you: The good news is, you’re probably entitled to at least a little bit of extra cash thanks to a recent $58 million class-action lawsuit’s out-of-court settlement. The bad news?
How does plaid get paid?
Plaid makes money by charging a variety of fees for connecting and using its service. The company operates on a freemium business model. Founded in 2012, Plaid has risen to become one of the world's most valuable FinTech companies. It is currently being valued at $13.4 billion.
Does using plaid cost money?
Plaid is free for everyone who uses a Plaid-powered app, allowing you to securely connect your bank account to the apps you want in just a few seconds.
Should I let Plaid access my bank account?
Yes, Plaid is safe to use. Plaid uses some of the most advanced security and encryption methods available to safely connect your bank account to outside organizations.
Should I give my credentials to Plaid?
Despite the popularity, this service appears to break two "fundamental" Internet security rules: Never give credentials to a third party. The standard is to redirect the user to a login page on the website of the service providing the login. Plaid doesn't do this, instead providing the login form on their own website.
Is Plaid safe to link bank?
Plaid is used by millions of people to safely connect their financial accounts to the apps and services they love and trust. Plaid never shares your data without your permission, and we don't sell or rent your financial information to outside companies.
Why is venmo asking me to use Plaid?
Venmo uses Plaid to verify your bank account information and, periodically, your bank account balance to check if you have enough funds to cover certain transactions.
Has Plaid been hacked?
But considering that the company has not been hacked and no data have been leaked, I'd have to say that… Yes, plaid is safe… so far. I have to point out though that the company has recently faced a lawsuit over the alleged collection of more information than what was needed.
Can Plaid see my bank account?
Plaid may pull out data like your account balance, or account numbers needed for deposit or withdrawal, but it does so using encrypted, protected tokens to shield your actual account information.
Plaid Settlement: Collecting Personal Data
For reference, Plaid is a system that acts as a "middleman" to connect banks with other fintech services. It is being used by tens of millions in North America.
How to Get Plaid Link Account Compensation
According to The Verge, eligible recipients should have been notified about the class action lawsuit via email, so users are recommended to check their accounts.
Plaid Link Error: How Much Will You Get?
Plaid did not elaborate on how much it would pay per person. However, it is possible to get a rough estimate.
Plaid Class Settlement
A Settlement has been proposed in class action litigation against Plaid. Approximately 5,000 mobile and web-based apps use Plaid to enable users to connect the app to the users’ bank accounts. This class action alleges Plaid took certain improper actions in connection with this process.
Who Is Eligible?
You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021.
How Much?
The total settlement is for $58M, but the settlement website says they can’t give an estimate until they see how many people file for a claim.
Our Verdict
Most readers of this site have used Plaid multiple times to connect any of dozens of apps to their bank accounts. On the form they ask for the names of the financial institution and app which you used Plaid to connect and leaves room for 8 inputs.
How much did Plaid settle?
Plaid has reached a $58 million settlement this week in a class-action lawsuit to address privacy allegations against the company. Plaid admitted no wrongdoing in the settlement, but agreed to a number of terms on how it informs consumers on the data it collects.
How much is the Plaid settlement worth?
Of the total $58 million, $14.5 million will go to lawyers on the case. The remaining amount will be split up between the up to 98 million people — whoever files a claim. If everyone did, the settlement would be worth about 44 cents apiece. The named claimants will get $5,000 each. Any money left over will be donated to two nonprofits.
What is the larger issue for Plaid?
The larger issue for Plaid is the agreement on its policies going forward. In the agreement Plaid agreed to several things, including providing more details about financial information it collects and operating a portal for consumers to manage their data.
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How much does warnings reduce hate speech?
Now, a new study — this one from researchers at New York University — adds to the evidence that giving users warnings about hate speech can actually cut down their use of hate speech by 10-20%. And those warnings can change users' behavior even when users aren't in the heat of the moment and about to tweet something regrettable.
How much does giving warnings about hate speech cut down?
A new study from NYU adds to the evidence that giving users warnings about hate speech can actually cut down their use of hate speech by 10-20%.
When did plaid link start?
Plaid has previously said that it has been informing consumers of the data it collects on Plaid Link, which first launched in 2015 but has changed substantially since then.
Plaid Class Settlement
- Plaid Settlement website | FAQ A Settlement has been proposed in class action litigation against Plaid. Approximately 5,000 mobile and web-based apps use Plaid to enable users to connect the app to the users’ bank accounts. This class action alleges Plaid took certain improper actions in connection with this process. The allegations include that Plaid: (1) obtained more financial data …
Who Is Eligible?
- You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021. More specifically, you are a Class Member if you own or owned one or more Financial Accounts that Plaid accessed using your login credentials and connected to a mobile or web-based app that enables payments or ot…
How Much?
- The total settlement is for $58M, but the settlement website says they can’t give an estimate until they see how many people file for a claim.
Important Dates
- April 28, 2022 is the final date to file a claim
- May 12, 2022 is the date of the final hearing
- January 1, 2013 to November 19, 2021 is the time period at issue in this lawsuit
Our Verdict
- Most readers of this site have used Plaid multiple times to connect any of dozens of apps to their bank accounts. On the form they ask for the names of the financial institution and app which you used Plaid to connect and leaves room for 8 inputs. Many of us will have much more than 8, but from the FAQ it seems you won’t get more than a single share in the class settlement; I don’t se…