Venmo Users Say Plaid Secretly Sold Bank Account Info

Law360 (May 5, 2020, 2:34 PM EDT) -- Plaid Inc., a financial technology startup whose software connects users' bank accounts to apps like Venmo and Stripe, has been accessing and selling the app customers' personal banking data without their consent, according to a proposed class action filed in California federal court.

Consumer plaintiffs James Cottle and Frederick Schoeneman claimed on Monday that Plaid has collected a "trove of data" from at least 200 million different bank accounts over the past few years by exploiting its role as a "middleman" between payment apps and their customers. The company estimates that one in four Americans have linked a bank account to...

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