Unless he's paying off a loan on a Lamborghini or a mortgage on a mansion, he'll be treated like an unwelcome poor relation. Many large banks prevent such troublemakers from opening accounts at all with computer systems such as Debit Bureau, according to a recent Economist article. The Debit Bureau database tracks consumers' check-writing histories. A serial check-bouncer often will be rejected by a bank. But according to its own press release, Debit Bureau also downgrades a customer for reports of lost or stolen checks.
Consumer advocates worry that's a device for identification of low-income neighborhoods.
The human factor factored out Bank tellers who ignore Debit Bureau's bad grade and open an account for such a customer anyway now may pay with their jobs. On Dec. 1, Debit Bureau added Audit Report to its repertoire. Audit Report notifies a bank teller's boss when an account is opened despite Debit Bureau's identification of the customer as a high risk. Well, biometric ATMs may be an option. Once a person is in the database, he can cash his paycheck at a biometric ATM for a fee of 1 percent to 3 percent of the check total.