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:

Poll Maker


“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.”

Complete your profile to continue reading and get FREE access to, part of your ALM digital membership.

Your access to unlimited content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including and

Already have an account?

Dig Deeper


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.