Boston, MA 06\/16\/2014 (wallstreetpr) \u2013\u00a0<\/b>The citizens of the United States, who have been deprived of banking facilities, as basic as opening a bank account, can now find relief with the latest turn of events in their favor. A report in The New York Times cited familiar sources, revealing the step taken by the New York’s attorney general to ensure proper usage of the database provided to the banks. According to the sources, office of the attorney general could soon announce the deal that it has reached with Capital One Financial Corp. (NYSE:COF)<\/b>, which has accepted to fundamentally change the way it use database, ChexSystems, to reject the banking applications.<\/p>\n
Investigations Eye-Opening<\/b><\/p>\n
The deal comes in view of the latest investigation carried out by the New York Attorney General Eric Schneiderman, encompassing six major banks in the U.S., which includes, Bank of America, Capital One Financial Corp. (NYSE:COF)\u00a0and JPMorgan Chase. The results of the investigation were an eye opener as it pointed out to how banks denied services to those, who have done minor banking errors in the past and were not real fraudsters. Databases like that of ChexSystems tend to include data about how consumers have managed their deposit accounts in the past. Thus, banking irregularities as minor as account overdrawing or a single case of check bounce had landed them on the blacklist profile. Financial regulators see such sort of screening as highly excessive and regard it as a major contributor to 10 million households in the U.S. being without the basic bank account.<\/p>\n
Limiting Usage Of Database<\/b><\/p>\n
Further sources noted that Capital One Financial Corp. (NYSE:COF)\u00a0itself found out in its self-analysis that the disqualifications were broader than required. While that led Capital One to promptly agree to restrict the inclusion to serial fraudsters in weeding applications, there are other regulators such as The Consumer Financial Protection Agencies, which have initiated further examination as to how the databases impact to the restriction to basic banking services.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/16\/2014 (wallstreetpr) \u2013\u00a0The citizens of the United States, who have been deprived of banking facilities, as basic as opening a bank account, can […]<\/p>\n","protected":false},"author":13,"featured_media":25883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[1942],"tags":[6948,6950],"stock_ticker":[],"class_list":["post-25882","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking","tag-capital-one-financial-corp-nysecof","tag-nysecof","entry"],"acf":[],"yoast_head":"\n