We are especially interested to learn more about how the screening system could be used to help institutions better meet the needs of these consumers, rather than simply excluding them from the banking system altogether. We will consider how to balance the needs of banks and credit unions with the needs of consumers for access and protection.
ABA has expressed caution about limiting use of these databases. ABA SVP Nessa Feddis said:
Just as a credit report helps banks determine whether to issue a loan, checking history databases help banks ensure that customers are offered the kind of financial products that work for them. And as with any information they use to make business decisions, banks seek to ensure these databases are accurate and reliable.
Read Cordray’s speech.
Read the CFPB blog post.