Credit union experts were hesitant to criticize a CFPB plan toreview credit union checking account screening, but emphasizedscreening is needed to prevent fraud and other losses.

On Wednesday, CFPB Director Richard Cordray said thebureau will review financial institution use of consumerreporting agencies like Chex Systems when screening checking account applications. He also said in his preparedremarks he was concerned by reports banks and credit unionsdisqualified consumers for checking accounts due to certain consmerreporting records, which the CFPB later clarfied to be involuntaryaccount closures and excessive NSF activity.

Phil Tschudy, media relations manager at CUNA Mutual Group, saidhis firm's insurance policies do not contain specific requirementsfor checking account screening, but added credit unions shouldmanage risk.