Plaid, a middleman for financial apps like Robinhood, Venmo, and Betterment and bank accounts, has created a privacy hub where you can manage all of your financial connections. The policy requires Plaid to prominently display the Privacy Hub on its site.
The hub, called Plaid Portal, shows users exactly which apps they are connected to by Plaid. It can be found by accessing my.plaid.com, where the service will prompt users to create an account. Then it is possible to browse connections and disconnect unused apps from bank accounts. The portal details the types of data users share through Plaid, as well as connected bank accounts. It is also possible to erase all linked data of a user via the portal.
Plaid, which is used by more than 5,500 apps to connect to bank accounts, has been accused of taking too much of users’ financial data and use this information to access and sell their transaction history. A class action lawsuit alleged that Plaid collected users’ bank account login information through web pages that mimicked “the look and feel of the user’s bank account login screen.” The company settled the lawsuit for $58 million without admitting wrongdoing and said it was sufficiently transparent with the user.
As part of the settlement, Plaid is required to delete some of its stored data, minimize the data it collects in the future, and “improve and maintain” the changes it has already made to Plaid. Link, the tool Plaid uses to connect users. ‘ bank accounts to applications. Plaid says its privacy center has been in the works for two years.
If you are a US resident and connected your bank account through Plaid between January 1, 2013 and November 19, 2021, remember to file a claim through the class action settlement website before April 28, 2022.
Fix for January 25 at 10:50 a.m. ET: An earlier version of the article said the privacy portal was required as part of the settlement, when it had actually been in the works for two years, and Plaid is required to prominently advertise it on its site. . We regret the error.