Bank Early Warning System

Sulaiman Abdur-RahmanUpdated June 9, 2023

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.

Early Warning Services (EWS) is a bank-owned fintech company and consumer reporting agency that collects information on U.S. bank accounts. As a consumer reporting agency, EWS provides financial institutions with comprehensive reports detailing a depositor’s banking history. EWS may have data on the status and balance of your bank accounts.As a fintech company, EWS is the owner and operator of Zelle®, a digital money transfer network. EWS is co-owned by Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.Commercial banks and other financial institutions generally rely on a bank early warning system report when deciding whether to approve a consumer’s bank account application. Below we highlight some of the early warning systems data and services that EWS provides.

What Is Early Warning Services (EWS)

As mentioned above, Early Warning Services is a financial technology company that operates the Zelle Network®. EWS is also a consumer reporting agency that provides financial institutions with comprehensive data on U.S. depositors nationwide.EWS provides early warning systems data that can help banks, credit unions, and savings and loan associations identify fraudulent checks and assess the risk of approving a consumer’s deposit account application.

What Early Warning Services Does

EWS performs the following actions as a consumer reporting agency:

Provides financial institutions with comprehensive data on a depositor’s banking history

Provides full disclosure files to individuals who request their consumer banking history report as compiled by EWS

Helps financial institutions determine whether a check is legitimate or fraudulent

What’s in Your Early Warning Services Report?

Your EWS report may contain the following information:

The different types of bank accounts you have

Your closed bank accounts

Information on whether any of your bank accounts were closed for cause

Information on whether you’ve had payments denied due to nonsufficient funds

Details on any overdraft or negative account balance you may have

Information on whether payments can be debited against your account
Information on whether check payments can be written from the account

How to Access Your EWS Report

You may access your EWS report by contacting EWS and requesting a free copy of your comprehensive EWS disclosure file. You can begin the process online through the EWS website or by calling EWS and speaking with a consumer services representative.You may need to provide EWS with the following information when requesting your report:

Name

Social Security number

Date of birth

Mailing address

Phone number

Copy of your driver’s license or other government-issued identification

As a consumer reporting agency, EWS under the Fair Credit Reporting Act has to send your consumer report within 15 days of receiving your request.

Difference between EWS, ChexSystems and TeleCheck

ChexSystems, EWS, and TeleCheck are all consumer reporting agencies with their own specific areas of focus as described below:

ChexSystems

ChexSystems collects information on closed checking and savings accounts and provides that information to consumers and clients who request it. These clients can include commercial banks that rely on ChexSystems data to assess the risk of approving an applicant’s request to open a checking or savings account.

EWS

EWS provides financial institutions with information on a depositor’s banking history and solutions that can help banks determine whether a check is legitimate or fraudulent. Consumers may request a free copy of their EWS report every 12 months under the Fair Credit Reporting Act (FCRA).

TeleCheck

TeleCheck provides merchants with verification and risk analysis solutions to help merchants determine whether to accept a personal check payment for a point-of-sale transaction.The TeleCheck database comprises check records and bank account debt records on consumers. You can request a free copy of your TeleCheck consumer file report every 12 months under the FCRA.

How Early Warning Services Can Negatively Affect Your Banking Activity

Any derogatory information on your EWS report — such as having an account closed for cause or owning a bank account with a negative balance — can make it harder for you to open a top savings account.Your ability to open any deposit account — including money market accounts — can be negatively affected if your EWS file contains derogatory marks.Keeping bank statements, keeping credit card statements, and monitoring your personal finances can help you stick to a budget.

Disputing Items on Your Early Warning Systems Report

The EWS National Shared Database contains consumer and business account data. If you’re wondering how to get removed from Early Warning Services’ National Shared Database, you may be out of luck.There’s generally no way on how to get removed from Early Warning Services’ database, but you may dispute information listed in your EWS report. You can write and send EWS a letter disputing any information in your EWS report as inaccurate or incomplete.Consumer reporting agencies like EWS are required to correct or remove false information in a consumer’s disclosure file. Negative information — or derogatory marks — can remain in a consumer’s disclosure file for up to seven years if they’re accurate and factually correct. Neutral or positive information can remain in your EWS disclosure file indefinitely. Recommended: Business vs Personal Bank Accounts

The Takeaway

The EWS National Shared Database has information on depositors with overdrawn bank accounts or other account issues. Banks, credit unions, and savings and loan associations can access the EWS database to help determine whether to approve or deny your application to open a new bank account.If you’re looking to open a savings account, Lantern by SoFi can help. Our online banking marketplace makes it easy to compare annual percentage yields and choose a bank account that’s right for you.Compare today’s high-yield savings rates including fees and balance minimums.

Frequently Asked Questions

Which banks report to EWS?

How long does a bank blacklist last?

Does Early Warning Services affect credit score?

Photo credit: iStock/MicroStockHub

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About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and served as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.

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