‘Do NOT sign’: Expert warns against new user agreements from your banking apps, PayPal. Here’s what it means for your data

A creator is urging you to take a closer look at your bank's new terms and conditions if you don't want them messing with your money.

Let's be real: almost no one reads the terms and conditions for apps and websites. You just trust that it can't be all that bad if thousands or even millions of people accept it as well.

In most cases, you usually need to accept the terms to use just about any digital product. This is from food delivery apps to photo sharing to maps.

Even if you did read over every term, these agreements aren't necessarily written straightforwardly for the common person (aka not a lawyer) to understand.

Luckily, there are people on the internet doing this for you and giving you the deets on what they found.

Are banks' user agreements getting worse?

In a viral video with more than 1.1 million views, content creator Stacey (@staceydigsit) shared why you should think twice about signing a new user agreement with your financial institutions.

"If you have received a new user agreement from your banks ... in the last week, look that [expletive] over before you agree to those terms," Stacey said. She added that this includes financial services like PayPal too.

Stacey explained that earlier this week, she noticed her bank had a new user agreement. Normally, she might not have thought much of it. However, because of "all of the Elon messing around the data and stuff," she was a bit suspicious.

"I am very suspicious about pretty much everything right now, and honestly, we should all be," Stacey said.

Stacey dug into the terms and told people that if their agreements sound at all like hers "do not [expletive] sign."

"They are banking on us agreeing to terms that are wrong. That are ultimately going to set precedents that are going to [expletive] the regular, average person because we want the convenience of the banking app," Stacey added.

Stacey said she'd been so put off by what she read in the contract that she might go back to analog and track her finances on paper.

What to look for

Here are the two things Stacey specially called out:

Arbitration provision: If you're wronged and want to take legal action, there's an arbitration provision. This is a clause stating disputes must be handled by a mediator out of court. They also limit the ability to file a class action suit.

Stacey's fear is that if the federal government is mishandling data (as Elon Musk is accused of doing with the newly formed Department of Government Efficiency), financial institutions won't properly protect their consumers. Then there will be no way to get compensation or justice.

"This is covering their a**es to make sure that the only way that you are going to get whatever kind of relief they agree to is whatever their arbitration clause deems enough to them," Stacey said. "And I'm guaranteeing you it's not gonna be enough."

"These guys are gonna cover their ends so you cover yours," Stacey continued.

Data: "Even more crazy is the next part." The agreement states that if you sign, you "grant a perpetual, irrevocable, nonexclusive licensable, transferable, and royalty-free right to use, store, copy and transmit the data."

This includes sensitive information like passwords and account information.

"That's crazy, guys," Stacey said, calling out the perpetually binding and irrevocable clause. Comparing it to a person being able to keep your things even after you broke up with them.

"This right here is some scary [expletive]," she said.

Stacey added that convenience shouldn't be more important than your rights and data.

Is this true?

Major news outlets have yet to confirm if these agreements are happening across the board in financial situations. However, this wouldn't be the first time a corporation tried to get customers to sign a non-favorable agreement.

In 2023, McDonald's faced backlash over new terms and conditions in the app. It prevented anyone who accepted them from suing the company.

@staceydigsit The most important part of the agreement is at the end. NOT the arbitration as much as the DATA terms. Shorter explanation here: @Stacey DigsIt Do NOT sign those new bank/financial user agreements before reading. Look at what they say specifically about your data #useragreementisbroken #donotcomply ♬ original sound - Stacey DigsIt

The Daily Dot reached out to Stacey for comment via TikTok direct message and comment. We also reached out to Jack Henry & Associates via email.

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