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Plaid controversies

Controversies tied to this brand in public sources. A listing is not a finding of fault.

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  1. 2021

    Consumer financial-data settlement

    Plaid agreed to a reported $58 million settlement resolving consolidated class-action claims that it obtained and distributed detailed banking information without sufficient consumer consent. The consolidated litigation was reported to involve approximately 98 million people.

  2. 2021

    Plaid settles consumer class-action lawsuits

    Settlement

    Plaid settled five combined class-action lawsuits in which consumers alleged it used banking login credentials to collect and sell financial data without consent. The agreement establishes a $58 million settlement fund and requires changes to business practices and policies; the allegations are not presented as a court finding.

    Company response

    • Remediation — Plaid

      In the settlement, Plaid committed to improve data deletion and minimization, improve disclosures, and continue to host a dedicated webpage with detailed information about its security practices.

    Source excerpt

    • Plaid has settled a class-action lawsuit in which consumers alleged that the company used dubious tactics to gather bank account data to share with fintech clients.
    • All alleged that Plaid used consumers’ banking login credentials to harvest and sell detailed financial data without the users’ consent.
    • Published August 06, 2021, 5:40 p.m. EDT
  3. 2021

    Plaid agrees to $58 million class-action settlement

    Settlement

    Plaid settled a class-action lawsuit in which consumers alleged that it used questionable tactics to collect bank-account data for fintech clients. The agreement provides for a $58 million settlement fund and changes to Plaid's business practices and policies; the allegations are not stated as a court finding.

    Company response

    • Remediation — Plaid

      In the settlement, Plaid committed to improve data deletion and minimization, improve disclosures, and continue to host a dedicated webpage with detailed information about its security practices.

    Source excerpt

    • Plaid has settled a class-action lawsuit in which consumers alleged that the company used dubious tactics to gather bank account data to share with fintech clients.
    • All alleged that Plaid used consumers’ banking login credentials to harvest and sell detailed financial data without the users’ consent.
    • Under the terms of the agreement, the San Francisco data aggregator has agreed to establish a $58 million settlement fund and make changes to its business practices and policies.
  4. 2020

    Bank-interface and data-privacy controversy

    Plaid faced criticism over account-linking screens that critics said could resemble bank login pages and over whether users were adequately informed about Plaid’s role and the financial data it collected. TD Bank filed a lawsuit alleging that Plaid sought to mislead bank customers.