WASHINGTON – The CFPB will review how credit unions and banks use reporting agencies to screen members when they open a checking account.

In his prepared remarks during a checking account access and screening forum hosted Wednesday by the bureau, Director Richard Cordray criticized credit unions and banks for using credit reporting agencies to screen for checking accounts. However, in his remarks he interchanged credit agencies with consumer reporting agencies like ChexSystems, which reports deposit account loss, fraud and NSF activity.

"It is one thing to use a credit report or similar type of consumer report as a means of assuring that consumers do not take on more risk than they can handle. Indeed, the bureau would be concerned if banks or credit unions were to grant credit to consumers without regard to their prior credit history," Cordray said. "For most consumers, though, checking accounts are not inherently credit vehicles, but instead are products for depositing and transferring funds. So it is troubling then that banks or credit unions may use a credit report to exclude some consumers from these basic financial services."