In a letter, the Student Borrower Protection Center and US PIRG call on the Federal Deposit Insurance Corporation, North Carolina Department of Justice, and North Carolina Office of the Commissioner of Banks to intervene in the proposed “Deposit Processing Services Agreement” (DPSA) between First Carolina Bank and BM Technologies. As the letter outlines, the advocates’ concerns include that the DPSA stands to impose a junk fee bonanza on students and small retailers in college towns, that BMT faces managerial deficiencies and a legacy of predatory conduct that render it unlikely to meet prevailing standards for banks’ third-party risk management, and that FCB is likely unready for the massive influx of novel out-of-state business that the partnership would involve. The advocates urge regulators to initiate careful scrutiny of First Carolina and BM Technologies rather than approve the DPSA.
Read the Letter: Letter outlining Concerns regarding First Carolina Bank and BM Technologies