Many consumers have heard of the ChexSystems company and the ChexSystems report. ChexSystems is a credit-reporting agency that keeps a database of consumers who have had negative interactions with banks. A person who has drawn a check on a closed account or overdrafted and never fixed the discrepancy may end up on such a report. A bank that finds information on a ChexSystems report will deny a consumer the ability to open a new bank account. Early Warning Services is a company that is similar to ChexSystems in its structure and the way that it can affect a consumer who is trying to obtain a financial product.
What Is Early Warning Services?
Early Warning Services is company that was created through a joint venture of several banks. Banks that own EWS include such banks as Bank of America, Wells Fargo, Chase, JP Morgan and Capital One. The primary purpose of the company is to prevent fraud. EWS seeks to prevent consumers from defrauding other consumers. Its purpose is also to protect banks from being defrauded by consumers. EWS has a database that is connected to several institutions. Credit unions, large banks, and small banks connect to the database, and they are able to see certain information about a consumer who is applying for a product.
What Is an Early Warning Services Report?
An Early Warning Services report is a document that is similar to a ChexSystems report. It includes negative information about a consumer’s transactions with other banking institutions. Some areas that an Early Warning Services report will cover are fraud, bank account abuse, and forgery. An Early Warning Services report will also cover such actions as paper changing, counterfeiting and check alteration. Additionally, an Early Warning Services report will contain information about check kiting, account owner authorization, and identity verification.
Risk Detection and the Early Warning Services Report
The Early Warning Services report will assess the amount of risk to a financial institution if the institution were to offer a consumer one of its products. Generally, a banking institution will deny a person a new account if it finds negative information on the Early Warning Services report. The flaw in the system occurs when people are accused of committing fraud when they do not necessarily commit fraud. For example, a person who unknowingly cashes a fraudulent check may be reported for fraud even though the fraud was unintentional.
What to Do About Being on the Early Warning Service Report
Just as a ChexSystems report can hold information for a number of years, an Early Warning Services report may do the same. The first step a consumer should take upon finding negative information is contacting Early Warning Services. The consumer has a right to one free copy of his or her Early Warning Services report. The person also has a right to dispute any negative information that appears to be false or inaccurate.
A consumer can contact EWS about his or her Early Warning Services report several ways. The person can contact the company by telephone at 800-325-7775. The person can also visit the website at www.earlywarning.com. Once the individual finds the information on the Early Warning Services report, he or she may begin the process of disputing the information. The company may be willing to remove information about a debt that has been paid. However, serious crimes of fraud and deceit may not be forgiven by EWS. The worst way to handle an Early Warning Services report is by doing nothing. Not taking a stand to protect integrity will make a consumer appear to be guilty of the things that were charged on the report.