Plaid, the service used by Venmo, Acorns, Robinhood and more, may owe you money
If you’ve connected your bank account to financial apps like Robinhood, Acorns, Venmo, American Express, Coinbase and Credit Karma, you may be entitled to cash, according to a report by fast business.
Plaid, the financial service these apps (and 5,500 others) use to link your bank account, has settled a class action lawsuit accusing the company of collecting more financial data from users than necessary. The lawsuit also alleges that Plaid obtained users’ bank login information “through its user interface, known as ‘Plaid Link,’ which resembled the user’s bank account login screen” . In reality, users entered their information “directly into Plaid”. Plaid denies these claims and claims to have been transparent with its customers.
Plaid will pay $58 million to affected users, but unfortunately for us the payouts could be slim – the company says millions of people have interacted with its service, which means more money to distribute. You may be eligible to receive a claim if you are a U.S. resident who connected a bank account to an app between January 1, 2013 and November 19, 2021. If you are unsure whether an app you use (or used) is affected, you can search for specific financial applications on the settlement site. In addition to the aforementioned apps, some other popular apps powered by Plaid include Chime, Mint, Betterment, and NerdWallet.
You may have already received an email alerting you to the class action, and if so, be sure to submit your claim before April 28, 2022. If you did not receive an email but think you have been affected, you can still file a complaint by going to the same page and pressing the “Click here” button. From there, you’ll need to fill out a form with your name and address, and a list of apps you’ve linked your bank account to. You can find additional details about the settlement on its FAQ page.