Business ProfileforStride Bank, N.A.

In March of 2022, BBB investigated Stride Bank's business practices. This investigation was prompted by a large complaint volume concerning Billing and collection issue, refund and exchange issues, service issues, and customer service issues. Please see the alert on Pattern of Complaints for details. On July 14th, 2022 BBB sent an email to Stride Bank asking the following questions:

1.) What is happening with the excessive amount of complaints with the same patterns.

2.) Their Dasher Direct issues, where the consumers report that their funds are not available in their accounts but withdrawn out of their Dasher account. 

3.) Why consumers report that their employers have paid their direct deposit but it is not in their account but withdrawn from their employers account.

4.) Why when the consumers have a fraudulent charge on their account and are told that they will receive a provisional credit during the investigation process that they never receive it.

In their response, dated (07-14-2022), the company indicated:

"Yes, the DasherDirect program initially identified several members whos profile had changed due to fraud. The dasher member would receive a phone call from a fraudulent customer service agent and request info including two factor authentication (2FA) code. It states on the cardholder agreement, app disclosure and several emails to never ever give out your 2FA code. Neither Door Dash, the Bank, or the program Manager Payfare will request this code.  But, the dasher member would give this code to fraudster. If we go to present day, this info was leaked on reddit. So DasherDirect members (limited number including members who filed complaints on the BBB) began to share there 2FA with family members, friends, mules, etc. Door Dash was providing a one time courtesy refund to members initially but when several emails, communication, etc was sent out to not share 2FA but they continued, members were committing fraud Direct Deposit – We have no concerns with Direct Deposit. Once an ACH file is received, it is released to member accounts. Chime has in some instance 2 day early direct deposit (which is applicable and noted within cardholder agreement). Dispute Claims – Per Regulation E, we adhere to the reg and in majority of complaints (99.999%) the members are upset. We also have a Compliance Testing Team that performs quarterly REG E testing to ensure the controls in place are accurate and reg E violations are identified. Our Payment Partners and the Bank use software to help track and manage REG E applicable Disputes. The Bank is also under regulatory body of the OCC, and annual Safety and Soundness reviews are performed with no identified discrepancies. Like noted below, the complaints received from the AG, BBB, Regulatory Agencys, etc only make up .01% of total consumer base. The reporting and account management is report to our Board. We always work for the consumers and members of the Bank and ensure adequate responses are made. Please let me know how we can improve our ratings on the BBB."

Based on the information detailed above, BBB cannot state with confidence that we have a clear understanding of the business practice.