Venmo, Robinhood and other money app users may be eligible for payment


If you use financial apps like Venmo, Robinhood, or other online banking services, you may be eligible for a payout after Plaid, a fintech company, settled a class action lawsuit.

The lawsuit alleged that Plaid took improper steps when securing the connection between users’ bank accounts and the app or online service. A $58 million settlement has been reached.

Plaid allows consumers to link their bank accounts to financial services apps. The company is an important but unknown middleman between banks, which hold consumers’ money, and the dozens of platforms vying for the platform of choice to send that money. Bankers refer to companies like Plaid as “the plumbing” behind running these apps.

This “plumbing” has become more important as more Americans use mobile wallets to send money to friends, families and businesses.

Visa, when it bought the fintech company in January 2020, estimated that one in four Americans with a bank account had used Plaid’s underlying technologies.

The lawsuit alleged that Plaid obtained more financial data than necessary when securing these transactions and that Plaid also obtained login credentials through its interface, known as “Plaid Link”, which had the appearance of the user’s bank account login screen, when users actually provided their login credentials directly to Plaid.

Plaid denies the allegations.

In this photo illustration the Venmo – Share Payments logo seen displayed on a smartphone. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

As part of the settlement, Plaid is to pay valid consumer claims, as well as enact several privacy and policy changes.

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Who is part of Plaid’s class action settlement?

All U.S. residents who own or had one or more financial accounts accessed by Plaid between January 1, 2013 and November 19, 2021 are part of the settlement. Those whose login credentials have been obtained are also eligible to file a complaint.

Some may have already received a settlement notice by mail or email. If you haven’t received a notice, you can still be a member of the group.

You can check if the apps or services you connected to your financial account used Plaid for the connection by clicking here.

How to File a Claim in the Plaid Settlement

To claim a cash payment as part of Plaid’s $58 million settlement, you must complete a claim form. You can do this online or by mail.

In line: Complete and submit the form to www.PlaidSettlement.com.

By email: After printing a copy of the claim form, mail it to:

  • Plaid, Inc. Privacy Litigationc/o Settlement Administrator1650 Arch StreetSuite 2210Philadelphia, PA 19103

The deadline to file a claim is April 28, 2022. The amount of payment depends on the number of valid claims filed.

For more information, call 855-645-1115.

Applications that use Plaid

Around 5,000 mobile and web apps use Plaid to allow users to connect the app to users’ bank accounts.

You can check if the apps or services you connected to your financial account used Plaid for the connection by clicking here.

This story was reported from Detroit. The Associated Press contributed.

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