WASHINGTON—During the Consumer Financial Protection Bureau’s forum on checking account screening practices Wednesday, Director Richard Cordray outlined three areas the bureau will be investigating.
Cordray said the agency is concerned about the accuracy of reports related to the screening process, about consumers’ ability to access the reports and dispute any incorrect information, and the ways in which these reports are being used.
Addressing accuracy of report information, Cordray said, “The specialty consumer reporting agencies typically generate reports focused on information that is primarily derogatory about a consumer. We are concerned about whether this information contains too many imperfections and inconsistencies.”
Not only is the CFPB worried about consumers’ ability to readily access their reports and get inaccuracies fixed, Cordray said, “We are concerned that most consumers are unaware of how this screening system affects their ability to access a checking account . . . So it is troubling then that banks or credit unions may use a credit report to exclude some consumers from these basic financial services.”
Both CUNA and NAFCU had representatives at the forum.