In filings filed in court in New Jersey on Wednesday, the bank said Plaid created a user interface for financial services applications that infringed the bank’s brands, logos and green colors.
The bank said in court documents that the interface “fools” consumers into believing they are entering personal information into TD Bank’s trusted platform.
“In reality, however, consumers unwittingly give their login credentials to the defendant, who takes the information, stores it on its servers, and uses it to retrieve consumers’ bank records for valuable data (e.g. transaction histories). , loans, etc.), which the defendant monetizes by selling to third parties, ”TD said in court records.
The bank called the sale of data “unscrupulous” and a privacy breach by Plaid, which offers software that allows developers to interact with banks and credit cards.
Plaid did not immediately respond to a request for comment from The Canadian Press. The allegations made in the filings have not been proven in court.
The bank said in court records and in a statement that it had taken legal action against Plaid because it had repeatedly tried to resolve the issues to no avail.
“Intentional and unauthorized use by Plaid of TD’s name, trademarks and logos is misleading,” said Greg Braca, president and CEO of TD Bank’s US subsidiary, in a statement.
“By mimicking TD’s login screen, Plaid creates the false impression that consumers are interacting directly with TD Bank or entering their banking information on TD’s secure digital and mobile application platforms or on a platform authorized by TD. TD, when it is not.
TD seeks a court order that Plaid cease its unauthorized use of TD’s name, trademarks and logos in the provision of its services and wants Plaid to return to the bank all profits derived from the use of logos and trademarks.
He also seeks an order requiring Plaid to pay damages up to a maximum of $ 2 million for each type of service sold, offered for sale or distributed by Plaid under the bank’s trademarks and seeks payment to determine exceeding $ 75,000 for damages caused by the acts.
Plaid and Visa Inc., which announced earlier this year that it would buy Plaid for US $ 5.3 billion, have faced a series of class actions in the United States accusing the company of selling information obtained by login to millions of customer accounts without disclosing the practice.
Visa did not immediately respond to a request for comment for this story.
Plaid was founded in 2012 by Zach Perret and William Hockey and quickly amassed millions in venture capital after being used by popular financial firms such as Venmo, Coinbase, Square, and Stripe.