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...


California May Bar Credit Checks on Job Seekers

Employers are increasingly running credit checks on prospective employees. This practice will be prohibited in California with some exceptions if a bill in the California Legislature is enacted. Assemblyman Tony Mendoza (D-Norwalk)’s bill, AB 482, would restrict credit checks except for jobs that involving handling money or certain personal information. As reported in the San Francisco Chronicle, Mendoza points out that credit checks discriminate against blacks, Latinos and lower income people who tend to have worse credit. Credit history often has nothing to do with job performance.


Bad Credit Can Mean No Job

More or more job seekers are being turned down for employment based on a bad credit report. The WSJ reports that 47% of employers check credit history for at least some positions. Most do so with respect to jobs with fiduciary or financial responsibility or for senior positions. Employers can legally check credit if the applicant authorizes them to do so. Employment agencies point out that if the applicant refuses, there is little chance of getting a job. Credit checks create a vicious cycle that prevents those who most need jobs from getting hired. At least one bill in Congress...


Credit Checks May be Unfair to Job Applicants

The NY Times reports that employers are increasingly running credit checks on job applicants. While that may make sense if the applicant is going to be handling money or guard a Brinks truck, it makes no sense in the case of jobs that do not involve a risk of loss of money. Only a few states have laws barring the practice. However, there is a federal law requiring agencies that provide employment reports to employers to notify the applicant of the contents of the report if it is adverse. The idea is to give applicants a chance to dispute inaccuracies...



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