How much did Plaid pay out in settlement?
Plaid agreed to settle the litigation for $58 million. Under the terms of the settlement, U.S. residents who connected their bank accounts or other financial accounts to apps that use Plaid, like Stripe and Venmo, between January 1, 2013, and November 19, 2021, were eligible to receive compensation from Plaid’s $58 million settlement fund.
Is there a class action lawsuit against Plaid?
A Settlement has been proposed in class action litigation against Plaid Inc. (“Plaid”). Approximately 5,000 mobile and web-based applications (“apps”) use Plaid to enable users to connect the app to the users' bank account (s). This class action alleges Plaid took certain improper actions in connection with this process.
What is Plaid about Plaid?
What’s This About? Plaid Inc. is a company that built technology that enabled “approximately 5,000 mobile and web-based applications” to be able to connect those apps to users’ bank accounts.
Is ‘Plaid settlement’ email a scam or legit?
In early January 2022, Google users looked to find out if an email for a class action settlement for Plaid Inc. was a “scam or legit,” as readers often do after receiving such notices. The email linked to the website, PlaidSettlement.com. This was a legitimate notice for a real class action settlement for Plaid Inc.
How much will you get for Plaid settlement?
The named claimants will get $5,000 each. Any money left over will be donated to two nonprofits.
What is a Plaid lawsuit?
Plaid Inc. has agreed to pay $58 million to end class action lawsuit claims that it violated data privacy laws. The settlement benefits any U.S. resident who owns or owned one or more “financial accounts” accessed by Plaid, or for which Plaid obtained their login credentials, between Jan. 1. 2013, and Nov.
What apps are Plaid connected to?
Plaid is a fintech company used by more than 4,500 companies to connect users to other third-party financial applications. This includes Venmo, Acorns, Betterment, and many other fintech companies.
What apps are covered under Plaid settlement?
A company called Plaid powers some of the most common financial apps found on your phone. Venmo, American Express, Capital One, Ally Financial, Wells Fargo and many more use Plaid. The California-Based just settled a $58 million dollar class action lawsuit.
What banks use Plaid?
Plaid delivers reliable and easy integration to thousands of bank APIs so that you can seamlessly power your Fintech innovationAlly Bank.Discover.Fifth Third Bank.Huntington Bank.KeyBank.M1 Finance.Mos.Navy Federal Credit Union.More items...
Where is my Bank of America settlement check?
Class members can expect settlement awards to be received by April 30, 2022. To view your check status, click here. Questions? Contact the Settlement Administrator at 1-855-654-0890.
Should I trust Plaid?
Plaid uses the highest levels of security possible to keep your information safe. When you link your checking account with a financial application through Plaid, the company instantly encrypts sensitive data and shares it with the application using a secure connection.
Should I give Plaid my bank login?
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.
Why does Plaid ask for my bank password?
Why does Plaid ask to connect to my bank account? Plaid connects to your bank account so that it can create a secure connection between your financial institution and the applications that need financial information.
What does Plaid actually do?
Plaid is a service that provides the technology to connect your financial accounts and share their data with an app, service or company. You might choose to share your account information through Plaid in order to get access to a service or product like Venmo, Chime, Acorns, Truebill or NerdWallet's app, for example.
Is Plaid part of Venmo?
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.
Is Venmo part of Plaid settlement?
Its clients include Venmo, Coinbase, Robinhood, Fidelity Bank and many others. According to the settlement page, Plaid can connect a user's financial account with about 5,000 mobile and web-based apps to help people make payments, transfer money, pay bills, make investments and apply for loans.
Is Plaid a legitimate company?
Plaid is a reputable company that uses encryption and industry-standard security measures to protect your information. What is Plaid? Plaid is a financial technology company that serves as the middle man between financial services and their users.
Is venmo part of the Plaid settlement?
What is Plaid? The San Francisco-based financial services company Plaid Inc. connects apps to banking institutions. Its clients include Venmo, Coinbase, Robinhood, Fidelity Bank and many others.
Who is Plaid owned by?
VisaOn January 13, 2020, Plaid announced that it had signed a definitive agreement to be acquired by Visa for $5.3 billion.
Does PayPal use Plaid?
Plaid, one of our third party connectors, can help you get your expenses automatically imported from your bank accounts, credit cards, and PayPal accounts (Crypto, Investment, Loan and Line of Credit accounts will not be imported).
What's This Settlement About?
A $58 Million Settlement has been proposed in class action litigation against Plaid Inc. (“Plaid”). Approximately 5,000 mobile and web-based applications (“apps”) use Plaid to enable users to connect the app to the users' bank account (s).
How Do I Qualify?
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.
What Can I Get?
This Settlement establishes a $58 million Settlement Fund, to be used for cash payments to Class Members who submit valid claims for compensation, after deducting the costs of the settlement administration, court-approved attorneys' fees and expenses, and Service Awards for eleven Class Representatives.
How Do I File a Claim?
Class Members wishing to make a claim must submit a claim form online HERE . The deadline for submitting a claim is April 28, 2022. Only one claim form may be submitted per household.
What is a plaid?
Plaid is a fintech company that facilitates communication between financial services apps and users’ banks and credit card providers.
How does Plaid work?
This could include a portfolio aggregator needing access to your investments or a budget site accessing your bank and credit card transactions. Using Plaid allows these sites to access this information without giving them your bank or credit card login credentials.
What is a plaid software?
Plaid software operates in between your financial information and financial sites that you want to receive your data. Using a service like Plaid prevents financial sites from having access to all of your banking and other data. Instead, you only share the specific information that you indicate.
Can you use Plaid to authorize a bank account?
Once you have used Plaid to authenticate your bank information, the connection is in place and can be used to transfer the financial information you authorize. This could be information like transaction history, balance or other information. Installment payment platform Sezzle is one finance company that recently announced that they are using Plaid for financial authorization. Through the partnership, Sezzle customers will be able to connect their financial accounts via Plaid. This will allow them to pay more efficiently using ACH instead of a credit or debit card.
Can you use plaid to connect to Chase?
For example, you can use Plaid to connect to your Chase bank or credit card account. When you need to pass your bank credentials to another finance app, you'll be prompted with a Plaid window.
Is Plaid Safe to Use?
As with most companies that transfer financial information, Plaid says it takes the security of its customers’ data very seriously. Plaid uses encryption protocols like the Advanced Encryption Standard (AES 256) and Transport Layer Security (TLS) when transmitting financial data. Knowing that your data is transmitted using these security settings may give you an extra layer of confidence.
Venmo users are eligible for the Plaid settlement
Plaintiffs in the Plaid class action lawsuit claimed that Plaid unlawfully used data obtained on consumers. The company is alleged to have exploited its position to obtain user login information and sell transaction histories.
How can individuals file a claim for the Plaid settlement?
Consumers who can receive a payment from the settlement include users of financial accounts that were accessed by Plaid. Plaid must have accessed one or more of your financial accounts or obtained your login credentials between January 1, 2013, and November 19, 2021. You must also have been a U.S. resident at that time in order to file a claim.
Is Plaid publicly traded?
Plaid has been through some ups and downs, namely with a failed Visa merger in 2021. Plaid isn’t publicly traded, although an IPO is still a possibility. In December 2021, Crunchbase named Plaid as one of 30 startups it deemed likely to go public in 2022. Other fintech firms named in that piece included Klarna, Chime, and Stripe.
