ChexSystems is compiles information on how consumers use deposit accounts. The majority of financial institutions will screen a new applicant before approving them for a new deposit account. New York Attorney General Eric Schneiderman has announced that they’ll be taking a look at how ChexSystem is used by financial institutions and what can be done to reduce the number of people that are negatively affected by information found in ChexSystems reports without increasing fraud rates.
[Read:Â An Introduction To ChexSystems, Inc]
This is due to a growing concerned about the number of American’s that are unbanked (825,000 in New York) and have to pay high fees to access their money. This investigation has already provided some positive results, Capital One looks set to announce that applicants will only be barred from deposit accounts based on ChexSystems information if there is a fraud flag on their ChexSystems report.
It’ll be interesting to see how this develops, if more banks follow suit this could make it easier to open more bank accounts for the sign up promotions they offer. Either way it’s good to see Eric Schneiderman taking an interest in ChexSystems and encouraging large financial institutions to take a look at how this data base is used.
Hat tip to Rufflesinc from flyertalk for the information.
