Venmo and Robinhood are among the apps that include themselves in using Plaid's services to link the bank accounts from its platforms to the online services to transfer money digitally. However, the recent lawsuit found that Plaid got more financial data than it was telling users and the companies, now facing a class-action settlement to all its victims.
Plaid Class-Action Lawsuit Settlement: Available for Victims of Data Collection
Plaid is a company that significantly plays a role in FinTech. This is because the company holds massive data required to verify its identity and collect data. However, it is now the focus of a class-action lawsuit that came to a settlement for its victims, especially now that it compromised the users' data.
The company partnered with a lot of the world's leading FinTech companies, mainly as they started their services to bring its promise of data security. Plaid did not exactly leak their data, but the dispute now is that the company overstepped in its boundaries and got more of what they intended from users, and it is harmful to many.
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Plaid: How to Get and Apply for Claims, Exclusive for the US Only
Plaid is offering its services to help people get the proper compensation from them for the inconvenience and supposed breach that they did against the users of multiple platforms. It is not only Venmo and Robinhood to face its effects, especially as the company has a lot of clients on its list.
From 2013 through 2021, applications to different fintech platforms, Plaid will include the users affected on the settlement.
Moreover, the claims website will only accept submissions by April 28 this year.
Plaid will settle $58 million for the case, divided into the claims made by affected users.
Venmo, Robinhood, and other Online Platforms
Venmo is a known fintech app that came from PayPal, bringing a platform that allows to split the bill and invite friends into the purchase without the need for lengthy transfers and transactions. It is also known for many disputes now, including a friends list leak that compromised a user and their contacts within the app.
On the other hand, Robinhood is a known platform to trade stocks and invest on different platforms, companies, and listed features in the application. Last year, towards early November, the company faced a massive hack that involved almost seven million users that suffered victims to the threat actors that breached Robinhood.
The world of FinTech and online currency is massive and dangerous, especially as it talks about sensitive financial data that needs to be available online for verification.
Plaid is one of the services that offer the feature to users and help connect bank accounts from one platform to another. However, overstepping their boundaries is a significant dispute that harms people, hence settling the lawsuit and bettering its use of the information available to them.
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Written by Isaiah Richard
