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Plaid settlement will see $58 million paid to users of American Express, Venmo, Robinhood, and other apps


hegemony
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  • 2 weeks later...

I have experience with Alliant Credit Union and some of my crypto platforms use Plaid as a middleman to verify your bank account information to Plaid clients.

 

The news article reporting was on the spot that Plaid wants to get hold of your login and password.

 

Alliant has asked for a login and password on my bank account for confirmation so that Plaid can access it, I withdraw the process and allow my bank to allow Plaid access, I can also terminate the process at any time.

 

I recently applied for a BlockFi Visa Signature Card and need Plaid's assistance as a middleman to verify my bank account information.

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  • 2 weeks later...

I think Plaid was clearly greedy, even though they told people like us they wouldn't sell our private information, and in turn, they did and got punitive damages in a $58 million settlement.

 

I think Plaid was a pioneer in being a middleman for bank clients, just like some entities in Europe operating the process of verifying bank accounts for corporation customers.  Soon it will be more and more of Plaid's competitors. A precursor that is not good for consumers.

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30 minutes ago, MP80 said:

I think Plaid was clearly greedy, even though they told people like us they wouldn't sell our private information, and in turn, they did and got punitive damages in a $58 million settlement.

 

I haven't seen any indication that Plaid sold info to anyone.

 

The issue appears that when you consented to permit Plaid to connect a financial institution to your credit card account, it presented an interface for the login input that was near identical to that of the card card issuer's login screen.  This appears to have given some users the impression that the login was being submitted to the card issuer directly and that Plaid didn't keep a record of it, and that somehow that single login would secure a continuing connection between the institution and issuer thereon without further use of the login credentials.

 

The capture of your login by Plaid apparently wasn't overtly disclosed, nor disclosed in the underlying user agreement.  Thus it became a privacy violation.  Some enterprising soul, in conjunction with a law firm, took advantage of this to act as primary plaintiff in a class action to score some bucks.

 

I can't speak to anyone else, but it was intuitively obvious that Plaid would retain my login credentials for each linked account.  Of course, even with such implicit understanding, it doesn't let them off the hook for failing to disclose and obtain consent.

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1 hour ago, hdporter said:

I can't speak to anyone else, but it was intuitively obvious that Plaid would retain my login credentials for each linked account.  Of course, even with such implicit understanding, it doesn't let them off the hook for failing to disclose and obtain consent.

"A federal court judge on Wednesday approved banking app Plaid’s $58 million privacy class action settlement after consumers claimed the company had harvested and sold their financial data without consent."

 

"U.S. Magistrate Judge Donna Ryu’s order found that 11 plaintiffs from five lawsuits, led by James Cottle, won payment for all impacted customers whose data was sold by the tech startup Plaid using their banking login credentials. Plaid provides bank “linking” and verification services for fintech apps that consumers use to send and receive money from financial accounts such as Venmo, Coinbase, Cash App, and Stripe." 

 

According to the litigation, Plaid violated the Stored Communications Act, which prohibits unauthorized access to electronic communications considered to be in “electronic storage.”

 

A spokesperson for Plaid said the company denies ever having sold or harvested data.

 

“While we disagree and have denied all allegations, we’re looking forward to putting the lawsuit behind us,” they said in an emailed statement.

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1 hour ago, MP80 said:

"A federal court judge on Wednesday approved banking app Plaid’s $58 million privacy class action settlement after consumers claimed the company had harvested and sold their financial data without consent."

 

I retract my prior comment re this thread.  There's far too little that is solidly documented to intelligently comment.

 

There are numerous allegations that Plaid collected data beyond account logins and either sold the data, or sold analysis derived from the data.  But I have yet to see anything that presents the slightest evidence of these claims.

 

The fact that the plaintiffs appear to have rolled over in approving a settlement suggests that there was a lot of soft ground.  The lawyers have earned their payday; there's little money for the class members.  (But that's speculation.)

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1 hour ago, hdporter said:

The fact that the plaintiffs appear to have rolled over in approving a settlement suggests that there was a lot of soft ground.  The lawyers have earned their payday; there's little money for the class members.  (But that's speculation.)

Yep, there is little left per consumer as lawyers get a huge share.


If you look at the 2019 Equifax settlement you will understand how tiny small the cut was that went to the folks. I'm facing threats on a daily basis given by these incompetent people that are in charge of security safety, the phishing email is coming none stop from all directions which someday makes me cringe on double alert! 

 

Getting so little in return and paying a high price, it's not worth the bargain!

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