1. Home
  2. More
  3. Rejected for a Checking Account? Banks May Get More Forgiving
  • Sign up
  • Sign in
Money Talks News
  • Popular
  • Latest
    • Coronavirus
    • Ask Stacy
    • Make
    • Save
    • Borrow
    • Grow
    • Live
    • More
  • Deals
    • Automotive
    • Clothing & Accessories
    • Computers
    • Electronics
    • Everything Else
    • Financial Services
    • Gaming & Toys
    • Health & Beauty
    • Home & Garden
    • Movies, Music & Books
    • Office & Supplies
    • Special Occasion
    • Sports & Fitness
    • Store Events
    • Travel & Entertainment
  • Podcasts
  • Solutions
  • Academy
  • Subscribe to our newsletter
  • Follow us on Facebook
  • Follow us on Twitter
  • Search our site
Happy senior woman7 Wise Money Moves to Make in Your 50s and Beyond
7 Smart Ways to Recession-Proof Your Retirement7 Smart Ways to Recession-Proof Your Retirement
7 Smart Ways to Defend Yourself Against Soaring Gas Prices7 Smart Ways to Defend Yourself Against Soaring Gas Prices
If You Find This Thrift Shopping, Buy ItIf You Find This Thrift Shopping, Buy It

Rejected for a Checking Account? Banks May Get More Forgiving

Databases intended to weed out fraudsters have been used to restrict consumers’ access to the banking system, but that may change.

Krystal Steinmetz • June 17, 2014 • Advertising Disclosure

Share on Facebook Share on Twitter Share by Email Share on Pinterest Printable version available to members PDF version available to members
Image Not Available

Imagine having a few bounced checks from your college years (which you paid back, plus the overdraft fees) come back to haunt you years later, preventing you from opening a new bank account. Sounds harsh, right?

It’s the unfortunate reality for more than 1 million Americans who have essentially been banned from the conventional financial system because of overdrafts and bounced checks – common offenses for young and low-income consumers. Private consumer databases like ChexSystems keep a record of such transgressions. Says The New York Times:

Such databases, used by Bank of America, JPMorgan Chase and other big banks, were intended to weed out serial fraudsters. Now, regulators say, banks are screening out potential customers and swelling the ranks of the so-called unbanked — the roughly 10 million households in the United States that lack even a basic bank account.

Complaints that banks were using the databases to screen potential customers and deny service to many poor consumers got the attention of Eric T. Schneiderman, New York’s attorney general. Schneiderman’s office began investigating banks to see if they were improperly denying or restricting access to consumers, the Times said.

Schneiderman’s efforts are starting to pay off. Capital One agreed Monday to use ChexSystems solely to restrict customers who end up on the database for fraud.

In other words, Capital One is going to start using the database for its intended purpose, rather than blacklisting some people for past bounced checks or overdrafts. According to Bloomberg:

Schneiderman praised Capital One’s willingness to “eliminate an unnecessary barrier to opening a checking or savings account” and urged other banks to follow its lead.

Capital One, the fifth-biggest U.S. credit card lender, was pleased the agreement worked to “expand access to critical banking services to all New Yorkers,” Kleber Santos, a bank official, said in a statement.

Capital One’s new policy will be implemented nationwide by the end of the year, Bloomberg said.

I overdrew my checking account a few times in my college days. I was too lazy to balance my checking account. I can’t imagine how upsetting it would be to have mistakes I made as a teen or young adult impact my ability to open a new bank account years later.

Is this a step in the right direction for Capital One? Do you think other big banks will follow its lead? Share your thoughts below or on our Facebook page.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

  Like Article   Add a Comment

Sign up for our free newsletter!

Simple ways to make, save, and grow your money daily:

  happy subscribers    

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

MTN Podcasts

Every week our podcasts bring you lively money discussions that will give you a few laughs along with advice that will make you richer.

Money with Stacy Johnson

Listen/Subscribe

Read Next

Some of our favorite stories for you to read next.

Senior shopping online
9 Things You Should Never Put on a Debit Card
Health savings account
3 Ways a Health Savings Account Can Improve Your Finances
Happy senior banking customer
6 Bank Accounts With Extra Perks for Older Customers
Sign up for our free newsletter!

Join our many free newsletter subscribers building wealth and destroying debt:

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Popular Topics
  • Retirement Investment
  • Surveys for Money
  • How to Make Money Online
  • Emergency Stockpile
  • Free Movie Streaming
  • Senior Discounts
Connect
  • Support & FAQs
  • Memberships
  • About
  • Contact
  • Careers
  • Accessibility Statement
Media
  • Advertise
  • Television
  • Where We Air
  • Scripts
  • Sitemap
Legal
  • Terms
  • Privacy
  • Cookies
Editorial
  • Fact-Checking Policy
  • Ethics Policy
  • Corrections Policy
  • Ownership & Funding Info

Do Not Sell My Personal Information

© 2022 Money Talks News. All Rights Reserved.
‭1 (833) 669-8557 | 1732 1st Ave #26661, New York, NY 10128

Advertising Disclosure: This site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.

View This Page Without Ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Help us produce more money-saving articles and videos by subscribing to a membership.

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.

Sign up for our free newsletter!

Join our happy subscribers and sign up for our free newsletter! You'll get:

  • Tips and advice from our expert money reporters. (Our average experience is 18 years!)
  • Unexpected ways to make more and spend less, delivered to you daily.
  • The best deals and coupons to save on everything you buy.
  • Free copies of our eBooks '208 Ways to Save Money Every Day' and '108 Easy Ways to Earn Extra Cash', together a $29 value!

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.