Under the terms of the agreement, Plaid has agreed to pay out $58 million and to make changes to its business practices and policies. The settlement encompasses five class-action lawsuits combined as one. Each suit claims that Plaid used consumers’ banking login credentials to gather and distribute detailed financial data without the prior consent of the consumers.
Approximately 98 million people are affected by the settlement. In these types of settlements, it is usually unlikely that all involved make a claim. However, in this case, the affected users of Plaid will be given the option to receive the settlement money automatically through payment platforms such as PayPal and Venmo, potentially leading to more claims than might otherwise be seen. Although the fee of $58 million may sound substantial, if all 98 million people were to file a claim, each would receive just 60 cents.
