While denying any wrongdoing, it agreed to pay USD 58 million to all consumers with a linked bank account to any of its approximately 5,000 client apps.
The lawsuit accused Plaid of collecting more financial data than was needed from users. It also claimed that the company obtained users’ bank login information via its own ‘Plaid Link’ interface. On top of the USD 58 million payout, the company was forced to change some of its business practices.
Earlier in January 2022, Plaid has splashed out around USD 250 million on ID verification company Cognito.
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