[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