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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EWS is absolute B.S.!!!!! I have ONE returned check which was paid within 24 hours of being returned, and EWS has ruined my ability to write a check at any local business. My bank was very surprised that one check (which was promptly taken care of) is causing such a problem. I have more than $12,000 in the bank and cannot currently write a $30 check. This is complete nonsense.
Yes, I have been denied because of being reported by BofA and it was not for bounced checks.
This type og agencies are Ok. to protect the greatest delinquents of the world, who contribute to the worlwide actual financial crisis, by the owners of those organizations, who must be in jail, however they maintain records for poor people who made little mistakes in writing checks for $100 or less money, keeping they apart to this corrupt system.
God is no going to Bless America for this!
The banks come to the American public with their hand out, saying “we made bed decisions. We need billions of dollars to cover our losses.” Our elected politicians say, “Sure. Have a few billion dollars so you can keep right on stomping the little guy and cruising around on your yacht.”
Now the business to big to fail are in the business of making sure you fail if you make a mistake in your financial life. Or worse yet, they are in a position to completely disrupt your financial life due to something that wasn’t your mistake in the first place.
I was denied the opportunity to make a purchase using a check at a national merchant. They had no idea why, but gave me the number for their check processing company, TeleCheck. A call to TeleCheck revealed that they had no specific information other than my account was reported as closed by Early Warning Systems, even though my account is not closed and I had visited the bank to add significant additional funds to the account the day before. TeleCheck told me I would have to contact EWS. EWS was closed on a busy shopping day, so in spite of my discussion with the merchant and phone calls to two different companies, I still have no idea why my check was declined.
Wake up people! Our lives are being controlled by the American czars at the high end of our financial institutions. These people have the power to take money from your pocket whenever they choose, either by grabbing billions at a time using their political connections or $35 at a time by manipulating your deposits and withdrawls to maximize your fees. Now it appears they are adding to their arsenal the power to banish individuals from the financial world altogether. Certainly some of the banished are real criminals who’s removal benefits us all, but others are the powerless classes who made a mistake that led to their banishment. Worse yet, is the uncountable multitudes who are denied access to the American banking system because of a beurocratic error or a computer glitch.
Where do you go when those who control the game won’t even let you play? How do you live life if you can’t open a bank account, cash a check, pay your bills, or even work for a company who uses direct deposit? The fact is that when you become black balled by the financial gods, you’re forced into the underworld of pawn shops, payday loans, title loans, and government programs.
There is a war going on here and no one is even aware. If one of these big companies is trying to banish you from the successful class, you need to fight with everything you have, or risk permanent entrapment in the growing underclass in America.
I opened an account at BOA on Dec 3 2009. I deposited over $1500 on a Wells Fargo check from CLEAR. BOA closed my acocunt within less than 24 hours. On Dec. 4 I went to bank to make another deposit and was told my account my closed. Fine! I don’t have to do business with BOA, however, BOA had put a hold on my funds until 12/09/09. Since the account was closed by the BOA Risk Dept. I now would not get my money until 12/17/09 (mailed to me via Certified BOA funds). The problem here is that BOA was paid by Wells Fargo after midnight on the 3rd of Dec. BOA risk dept says my account is not closed but pending closure.
The account would be closed on the 16th and a check mailed on the 17th. The problem I have is that none of this is diclosed at the time of opening the account. I feel that BOA or any bank using Chexsystems or EWS should conduct proper due diligence prior to accepting or opening an account. I had employyes to pay and obligations that needed to be handled. This has caused me sooo much havoc!!! As for my labled “account abuse” at another institution, it was ntohing more than bank automated debit charges that needed to be paid. I needed that money to handle that account.
I say, forget using the banking systems who use this type of strong arm and think they can just hold your money as long as they choose before it is released to you. I’m still waiting on my money. As for my personal BOA account that was opened months ago, I had a negative balance which I was planning to clear up once my business check cleared on the 9th. At this point, I will just send BOA a letter to kiss my ass, and that those funds can be reported to whomever because I won’t pay it now. I will keep that money as damages for keeping my money in business account for 2 weeks without my permission!!! What they do is make your account overdrawn by $888,000 so that no transactions can take place until they’ve made whatever interest off your money being held. I’ll be glad when they are shut down and fined to death for illegally holding account depositor’s money unlawfully!