Plaid Has to Pay $58M to Users of Robinhood and Venmo

Plaid, a company that connects consumer bank accounts to services such as Venmo, Coinbase, and Robinhood, will have to face paying up $58 million to users of those services as well as other apps.

The company was accused of collecting excessive financial data from consumers and has agreed to pay $58 million to all consumers who had linked a bank account to any of its 5,000 client apps.

It should be noted that Plaid has denied any wrongdoing despite agreeing to paying the settlement.

A lawsuit had accused the company 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.

In addition to the $58 million payout, the company was forced to change some of its business practices.

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.

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.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.