If you’ve linked your bank account to Venmo, Robinhood, or another financial app, you may be entitled to a settlement

App users are often unaware of the amount of technology required to run an application properly. For each function, there are heaps of coding. Want to know more? This hands-on training can help with that.

Third party data storage companies often process personal information. A separate company may be responsible when an app has payment features or money transfers. It would be hard to find an app that does all of these things in-house.

Thousands of companies rely on the fintech company Plaid for their financial logistics between apps and banks. But Plaid is now at the center of a class-action lawsuit. Read on to see if you are entitled to compensation.

Here’s the backstory

San Francisco-based Plaid provides financial services to more than 5,000 apps, facilitating everything from money transfers and payments to in-app purchases and crypto exchanges. It operates in six countries and Visa planned to acquire Plaid in 2020 for $5.3 billion.

The Justice Department blocked that deal over allegations of antitrust violations and data privacy practices. The latter forms the basis of the pending $58 million class-action lawsuit.

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App users had to go through Plaid’s software to link their bank accounts, and the lawsuit alleges “certain improper actions in connection with this process.” Plaid’s customers include industry giants such as American Express, Robinhood and mobile payment app Venmo

According to the procedural documents, plaid:

Systems used to collect more financial data from users than necessary Users’ banking data captured via proprietary Plaid Link interface

The lawsuit alleges that Plaid has often designed the Plaid Link interface to resemble the user’s bank account login screen. So instead of logging into the bank, app users unknowingly gave Plaid sensitive details.

The list of apps that use Plaid’s services is extensive, over 5,000. It includes Coinbase, Venmo, Robinhood and more. You can search for a specific app on the lawsuit information website to determine if one you have used is on the list.

What can you do about it?

If you’ve used an app that uses Plaid, there’s a good chance you’ll be eligible for a refund. As with any lawsuit, you must meet several criteria:

You are a resident of the US. At some point, you linked a financial account to an impacted app between January 1, 2013 and November 19, 2021. You own one or more financial accounts that Plaid had access to with your credentials. account credentials for Plaid via Plaid Link between January 1, 2013 and November 19, 2021.

A recent estimate put the number of people eligible for a claim at about 98 million. So if all 98 million filed for damages, each would get about 60 cents. There are also important dates to keep in mind.

You must file an exclusion request from the settlement by March 4, 2022. The closing date is also the closing date for filing objections to the settlement and filing a letter of intent to appear at the fairness hearing. The closing date for claim forms is April 28, 2022.

If you have any questions or would like more information about the lawsuit, a Frequently asked questions page can help.

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