CFPB Holds Forum On Access To Checking Accounts

CFPB

On October 8, the CFPB held a forum on consumers’ access to checking accounts. The event featured remarks from Director Cordray, as well as presentations from federal and local government officials, consumer groups, and industry representatives. Director Cordray noted the following three main issues of concern regarding the checking account application process, specifically in connection with the reports generated by specialty consumer reporting agencies and sold to banks and credit unions for use in determining whether to approve or reject a consumer for a checking account: (i) the accuracy of the information in the reports; (ii) the consumer’s ability to access the reports and dispute any inaccurate information; and (iii) the use of the reports to exclude consumers from basic financial services.  According to Cordray, while credit reporting agencies are required to report accurate information, the “institutions vary in their abilities to conduct the careful investigations needed to differentiate between accountholders who perpetrate fraud versus those who are victims of fraud.” The Bureau plans to explore alternative procedures for screening consumers, hopeful that better data might enable a financial institution to make more nuanced decisions in account screening rather than simply reaching a “yes or no” result.