People are denied the ability every day to open a checking or savings account because of an entry in the Chexsystems database. Why? If you have an entry in Chexsystems, fairly or otherwise, it’s due to bounced checks. For more info. here is creditinfocenter’s page on Chexsystems.

Now there’s a new database which banks are using to screen new checking applicants, Early Warning Systems (EWS). Early Warning Systems (previously Primary Payment Systems), along with other participating organizations, share information with financial institution who subscribe to it about potential customers which may be a risk.

If you have an entry in EWS, most banks will turn down your application to open a checking or savings account with them. Again, the most likely reason for your inclusion in the database is excessive overdrafts or bounced checks.

Think you’re being given a new “life” as far as being able to open a checking account with banks that don’t use Chexsystems, but use EWS instead? Nope. Almost everyone reported to Chexsystems is also reported to EWS.

So who is EWS? Early Warning Services is a limited liability company owned by Bank of America, BB&T Corporation, JPMorgan Chase, Wachovia, and Wells Fargo. From their website describing services to financial institutions:

Account Opening and Funding

New account fraud cost the financial services industry $14.7 billion in 2007, and cost victims $1,066 per case, according to the 2008 Identity Fraud Survey Report by Javelin Strategy & Research. To prevent such monumental losses and protect their customers, financial institutions need to be able to screen new demand deposit accounts (DDA) applicants for a prior history of fraud and/or account abuse (emphasis mine), as well as perform identity verification and compliance list screening. In addition, verifying a funding account at another institution reduces the fraud risks associated with new accounts.

Early Warning Solutions deliver superior analytics and advanced capabilities, including identity verification, account history and account owner authentication, to help organizations stop fraud at the door.

Like Chexsystems, EWS is a credit reporting agency, and because of this, you are entitled to see a copy of your report and it is your right to dispute. Those wishing to obtain consumer report information should contact EWS’s Consumer Call Center at 800-325-7775.

Early Warning Services
8777 E. Harford Drive Suit 110
Scottsdale, AZ 85255
800-325-7775
http://www.earlywarning.com/index.asp

Have you been denied the ability to open a savings or checking account because of an entry in EWS? Tell us by leaving a comment!

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