Blog: Over a Million Are Denied Bank Accounts for Past Errors

July 30, 2013
New York Times  
credit card news

Institutions like Bank of America, Citibank, and Wells Fargo insist that the use of databases that record individuals' banking mistakes, such as bounced checks or minor overdrafts, help them weed out risky customers and fight fraud. But consumer advocates and state authorities say the databases effectively keep more than 1 million low-income Americans out of the mainstream financial system for as long as seven years, leaving them little choice but to turn to alternative service providers to cash checks, pay bills, and wire money. The Consumer Financial Protection Bureau, responding to complaints about the databases, is studying whether they comply with the Fair Credit Reporting Act -- a federal law meant to curb the flow of inaccurate consumer information.
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