Earlier this month, users turned to Google to find out if the emails informing them of the “plaid settlement” are legitimate or spam. They’re real, and if you get it, there’s a chance you owe some money from the fintech company’s recent $ 58 million settlement.
Plaid technology allows users to link their bank accounts to approximately 5,000 different ones types of applications, from mobile banking and savings applications to business services and payment applications. In fact, you may find that one of your favorite apps uses Plaid to work, as I did when I wrote this article. Popular apps that rely on Plaid include Venmo, Robinhood, American Express, Capital One, Wells Fargo and Coinbase, among thousands more.
Last year, Plaid resolved a $ 58 million class action lawsuit filed by users who claimed the company had obtained bank login information and collected more data from them than was needed.
According to complaint, prosecutors said the company designed its Plaid Link interface to have the look and feel and login screens to their bank accounts, prompting them to enter their usernames and passwords. Usernames and passwords are then delivered to the Plaid via the interface. In addition, prosecutors argued that Plaid received more financial information and data than was approved or required by the application they used.
Plaid denied these allegations. Because he made a settlement with the plaintiffs, the court did not decide whether the company was guilty of what he was charged with.
“[N]o the court or other entity has made any findings against Plaid nor found that the law has been violated, ”reads u statement on the informative website of the settlement.
So how do you know if you owe money? If you used the Plaid-based app to link to your bank account from January 1, 2013 to November 19, 2021, there’s a good chance you’re eligible for a payout. (It should be noted that given the number of apps using Plaid and the time period covered by the complaint, you are not likely to get a lot of money).
It’s pretty easy to find out if your app used Plaid. The lawsuit settlement website allows you to do this look for affected applications and services. You may also have received notification that you are part of the subject class by physical mail or email. Once you understand this, you need to send a application form before 28.04.2022.
If I were you, I would check my spam folder to make sure the notification wasn’t accidentally sent there. I would also look to see if my most used financial apps will appear on the settlement website. You may not get a lot of money from this, but hey, free money is free money.