The negative ramification of being in the early warning system (EWS)
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The negative ramification of being in the early warning system (EWS)

Early Warning System or EWS does more or less what ChexSystems has done in the past, but it does it better. ChexSystems has made a name for itself by keeping people out of banks due to their bad bank credit history. EWS is the newest database that also tracks this same information. EWS entries generally mean that most banks will reject your request to open a checking or savings account. In short, if you’re in the database, you probably overdrafted too many or bounced too many checks.

So what’s the bad news? ChexSystems and EWS now collaborate and share information. Previously, one could be on ChexSystems but still find a banking institution that did not use ChexSystem reports. Banks that weren’t using ChexSystems started offering second chance bank accounts, but these days are fading fast. The brainchild of Bank of America, BB&T Corporation, JPMorgan Chase and Well Fargo, EWS monitors for fraudulent activity and account abuse, as well as providing a way to verify identity and pre-screen new account applicants. In other words, the EWS is a first-line defense against consumers with a history of abusing credit privileges.

So where does EWS get its information? Can it be challenged? EWS obtains your information from various financial institutions. Like the three major credit bureaus (Equifax, TransUnion, and Experian), EWS is a credit monitoring agency. This means that there is a report associated with your identity. If you have recently been denied an account at a financial institution, it is imperative to request information from EWS. Initial requests are taken by phone at the EWS Consumer Call Center by dialing (800) 325 – 7775.

So now that you know you’re in the system, what’s next? The negative ramifications of being in the Early Warning System are many. The first thing you’ll need to do is find an alternative way to receive and spend your money. There are several options available, but each one has drawbacks and costs for the use of a product or service. Prepaid debit cards or secured credit cards may be an option; however, the EWS doesn’t just track bank fraud, it also tracks your spending habits. If you are perceived to be a fast and heavy spender, you may have difficulty using certain prepaid or secured cards. In addition, you may have other lines of credit reduced or suspended based on a trigger in the system.

The next option is to use an online payment processor like PayPal. There are fees associated with sending and receiving money, but it’s a small price to pay for having a means of securing your money. To get your financial name back, you’ll need to carefully review your credit information, ChexSystems, and EWS. Dispute inaccuracies and work with creditors to pay the debt on time. In the future, make sure you pay all creditors on time every time, and always live within your means.

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