[Update: Payout] Plaid Class Action $58M Settlement

Update 11/17/22: many readers report getting a Paypal payment for this today of $35.97

Update 4/21/22: Reminder to claim by April 28, 2022. 

Update 2/9/22: Many people are now getting emails about this settlement, though for most people it’s landing in their spam email.

Plaid Class Settlement

Plaid Settlement website | FAQ

A Settlement has been proposed in class action litigation against Plaid. Approximately 5,000 mobile and web-based apps use Plaid to enable users to connect the app to the users’ bank accounts. This class action alleges Plaid took certain improper actions in connection with this process. The allegations include that Plaid: (1) obtained more financial data than was needed by a user’s app, and (2) obtained log-in credentials (username and password) through its user interface, known as “Plaid Link,” which had the look and feel of the user’s own bank account login screen, when users were actually providing their login credentials directly to Plaid. Plaid denies these allegations and any wrongdoing and maintains that it adequately disclosed and maintained transparency about its practices to consumers.

Submit a Claim Here

Who Is Eligible?

You may be a Class Member if you are a United States resident and you connected a financial account to an app between January 1, 2013 and November 19, 2021. More specifically, you are a Class Member if you own or owned one or more Financial Accounts that Plaid accessed using your login credentials and connected to a mobile or web-based app that enables payments or other money transfers; or for which you provided Financial Account login credentials to Plaid through Plaid Link; between January 1, 2013 and November 19, 2021.

How Much?

The total settlement is for $58M, but the settlement website says they can’t give an estimate until they see how many people file for a claim.

Important Dates

  • April 28, 2022 is the final date to file a claim
  • May 12, 2022 is the date of the final hearing
  • January 1, 2013 to November 19, 2021 is the time period at issue in this lawsuit

Our Verdict

Most readers of this site have used Plaid multiple times to connect any of dozens of apps to their bank accounts. On the form they ask for the names of the financial institution and app which you used Plaid to connect and leaves room for 8 inputs. Many of us will have much more than 8, but from the FAQ it seems you won’t get more than a single share in the class settlement; I don’t see any reason to spend time and find more than one. You can search for various apps here – I noticed Ibotta and Dosh for example, which is relevant for someone who linked their banks to those apps. Another method to find all your Plaid-linked accounts by going to my.plaid.com and entering your mobile phone number. (ht H.P.)

Notably lacking with this settlement is any sort of estimate for payment since they don’t know how many people will file claims. We’ve seen in prior class settlements where there was a surprisingly high payout, and it’s difficult to guess which ones will end up being worthwhile and which won’t.

Hat tip to reader Rusty
    Chuck
  • On November 17, 2022, 22:03
Tags: class action lawsuits

View Comments (253)

  • Has anyone created a login for Plaid and either:
    • disconnected financial accounts from an app (https://support-my.plaid.com/hc/en-us/articles/4420193428503-How-do-I-disconnect-my-financial-accounts-from-an-app-), or
    • deleted financial accounts from the Plaid Portal (https://support-my.plaid.com/hc/en-us/articles/4420201097239-How-do-I-delete-financial-accounts-from-the-Plaid-Portal-)?

    Changing your bank password is no longer guaranteed to disconnect Plaid's access, since many banks now provide them with APIs that use separate security tokens for authentication (OAuth).

    I wonder what others are doing. Thanks for any experience shared, suggestions or advice.

    • I have created a login there, and I remember once upon a time it was easy to delete the connections. Now they make you actually use Plaid to log into each of the target banks to delete the connections. So, no point as far as I am concerned, and too much hassle when you have 100 banks like me. @guest_1371130

      For those looking to check it out, start from https://my.plaid.com/, not the main homepage.

      We are all screwed anyway, once AI takes over the banking sector and empties out our accounts. :)

  • Hope they corrected whatever. Just used it for the first time to connect an external account to Citi. Got a notification from the other account about a new device added .. MAC OS something. . Was able to go in there and delete the new device.

  • Are any of you still waiting for payment on this? A check was mailed out to me a few months ago but I never received it. I've sent them numerous emails about this to no avail. I just left them a VM but am not confident at all that they will respond.

    • I received a paper check via USPS snail mail on November 18, 2022. I hope you can get your check reissued.

  • This was probably the first time I did not receive an e-mail notification for a PayPal transaction.

    I e-mailed questions@plaidsettlement.com, and received in less than 10 minutes:

    "Thank you for contacting the In re Plaid, Inc. Privacy Litigation Settlement Administrator. Claimant Settlement payments were issued beginning on November 16, 2022. If you selected an electronic payment method and have not received your electronic payment, you should log into the selected payment method’s account or open the app to see if there is a pending payment notification that requires your attention to resolve. If you elected to receive a check, please allow up to 30 days or until December 16, 2022 for delivery. If you have not received your check by December 16, you may contact us for further assistance. The pro rata amount of the check was calculated per the terms of the Class Action Settlement Agreement. For more information on how the payment was calculated, please visit the Settlement website http://www.PlaidSettlement.com and review the FAQs. "

    I logged into PayPal, and I actually received it on 11/18.

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