Bill to Curb Employers’ Misuse of Credit Reports

Bill to Curb Employers’ Misuse of Credit Reports

The NY Times reports on a bill introduced by Senator Elizabeth Warren that would bar most employers from requiring applicants to disclose their credit histories or otherwise disqualifying applicants based on poor credit ratings.

Employers are increasingly running credit checks on job applicants with the three national credit reporting agencies only too eager to add to their profits by selling credit reports to employers.

The problem is that research has proven that people with poor credit histories are not automatically poor job prospects. Plus, credit reports are not always accurate making the process even more unfair. A study of low- and middle-income families suggests that many applicants’ poor credit is a result of job loss in the recent depression or medical debts and not because of irresponsible behavior. Such debts do not reliably predict whether the applicant can satisfactorily handle a job.

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