Millions of Consumers Are “Credit Invisible”

Millions of Consumers Are “Credit Invisible” The Consumer Financial Protection Bureau has a report on the 26 million Americans who are “credit invisible.” The Bureau found that one in every 10 adults do not have any credit history with a nationwide consumer reporting agency. About 189 million Americans have credit records that can be scored. The report also found that Black consumers, Hispanic consumers, and consumers in low-income neighborhoods are more likely to have no credit history with a nationwide consumer reporting agency or not enough current credit history to produce a credit score. Another 19 million consumers have unscored...

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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...

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Call for Trans Union to Stop Selling Employment Credit Reports

Recently a woman was fired by her employer (Bain & Co. no less) for having excessive student debt. She started a petition to Trans Union asking them to stop selling credit reports to employers. The petition states that TransUnion, the world’s largest privately held credit reporting company, promotes credit history as a measure of character and suitability for employment. Some 60% of employers surveyed report they consult credit reports for job applicants, a practice that has left many qualified applicants out of work. The reasons TU should stop this practice are as follows: First, credit checks in hiring create a...

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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.

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