A federal judge will allow privacy claims to move forward against fintech company Plaid, accused of posing as a number of banking institutions in order to collect financial data from people when they signed up for payment apps like Venmo.
(Pixabay image via Courthouse News)
OAKLAND, Calif. (CN) — Financial services startup Plaid will have to face claims that it deceptively acquired consumers’ banking credentials without their permission.
In a ruling late Friday, U.S. Magistrate Judge Donna Ryu found a consolidated class of customers adequately alleged that Plaid had violated their privacy under a host of California laws by hiding its role as a transactional middleman in order to secretly download their financial data.