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Report Attacks ChexSystems, Early Warning

The National Consumer Law Center and Cities for Financial Empowerment Fund say CRAs are too harsh on consumers.

By David Morrison | Updated on October 20, 2015

The National Consumer Law Center and Cities for Financial Empowerment Fund released a report Monday that charged consumer reporting agencies such as ChexSystems and Early Warning Services with helping prevent millions of Americans from entering the banking system.

In the report, the National Consumer Law Center led an attack on what it claimed involves some credit unions’ use of payday lending.

Is it time for credit unions to rethink the screening process for new checking applicants?
Yes. Stop the screening. Everyone deserves a chance. Maybe. We can use screen results as an alert. New members with bad ChexSystems scores could get probationary accounts for one year. No. We need some type of screening to weed out real fraudsters.  Other Please Specify:

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“Most of us barely notice the critical roles our bank or credit union account plays in our daily lives – using our debit card to purchase something, paying our bills, safely depositing our paychecks,” Jonathan Mintz, president/CEO for Cities for Financial Empowerment Fund, said. “Yet, millions of consumers are excluded from this basic tool costing them tens of thousands of dollars over their lifetime, not because of a lack of financial education, but because of little-known and deeply flawed account screening consumer reporting agencies.”

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