New Law Would Prohibit Use of Credit Checks for Employment (bad credit, find a job) - City-Data Forum

bayarea-girl · 11-03-2009, 07:07 AM

It seems like TN, Texas, and CA are or have made it illegal to ask for credit reports for employment purposes and other states are following. Wonder if this will happen in GA?

New Law Would Prevent Employers From Checking Credit Reports | SPENDonLIFE

That_guy · 11-03-2009, 08:09 AM

That would be great. There's a lot of good people who've been refused jobs because of this, my mother included. While I do agree that bad credit does show signs of irresponsibility and other character flaws, some people have different situations that may not have necessarily been their fault. My mother's ex-husband racked up $100,000 in debt in her name, and left her with it. She had to file for bankruptcy, and can't find a job to save her life.

noah · 11-03-2009, 08:16 AM

There is evidence out there to suggest employees who have financial problems due to debt are not as efficient as workers. Too many laws, let employers decide. Right now less then half use credit reports.

atlantagreg30127 · 11-03-2009, 08:24 AM

It actually should be a Federal law, with only a few exceptions. Not a state-by-state decision.

I can fully understand having a credit report check for a job that involves handling money, such as a bank teller or cashier. If someone has a really bad track record with money, then yes, their having a job that involves handling cash isn't exactly a green light, and an employer has the right to know if the person might be a risk or not. However, far too many companies that have positions that have nothing to do with the handling of money use credit report checks on the people, and I agree, that needs to stop. Your employment history and references should be more than sufficient.

southgeorgia · 11-03-2009, 08:33 AM

Quote:

Originally Posted by atlantagreg30127

It actually should be a Federal law, with only a few exceptions. Not a state-by-state decision.

This should not be part of the role of federal gov't.

It is and should remain the states ability to decide. And I believe it shouldn't be illegal to check a prospective employee's credit no matter the position they're applying for.

atlantagreg30127 · 11-03-2009, 08:47 AM

Quote:

Originally Posted by southgeorgia

This should not be part of the role of federal gov't.

It is and should remain the states ability to decide. And I believe it shouldn't be illegal to check a prospective employee's credit no matter the position they're applying for.

Credit reports are available throughout the U.S. via the same Country-wide reporting agencies, so in effect, it is a "Federal" service. So therefore it should be a Federal law as to whether or not it is allowed or not. While it's trendy today for people to don their Rebel personality and say, "down with DC, we want to succeed!", the fact is, we are part of the UNITED STATES, and it only greatly complicates things when too many laws are handled on a state-by-state basis. There is no intelligent reason why checking credit reports should be handled differently 50 different ways by 50 different states. There should be one law, and one way of handling it, for all states.

Regarding exceptions to the rule, I see no reason why someone who owned a business that deals with money would want to hire someone who has filed for bankruptcy 3 times and has a credit score of 350. I wouldn't hire someone like that, and yes, if my business (bank, etc., as mentioned earlier) were hiring, I'd want to know if they were that bad with their finances. As far as the majority of OTHER businesses/positions that do not deal with money however, there should be no real reason an employer should need to do this. A call center employee, receptionist, or software developer for that matter, doesn't handle cash all day - their report should remain private, and their work history should be enough.

bayarea-girl · 11-03-2009, 08:58 AM

It should be a against the law and it should be a federal one in my opinion for checking employee credit. People with perfect credit are the biggest crooks. Bet Berne Madoff had excellent credit and tall the guys on Wall Stree do too? Credit checks shouldbe used for their intended purposes which is for credit. Credit companies want employers to believe that there is some sort of added benefit to them to check an employee and or applicants credit so that they can make $$$. In their reports they have found that credit reports are not a good mearsure of an employee. Background checks are more evident of ones charchter. People who want and are going to steal from a company will do so regardless of credit worthiness.

noah · 11-03-2009, 08:58 AM

There is no doubt that those with high loads of debt and other problems are under much more stress and it makes common sense that can lead to being less productive at work.

There is a reason why forward thinking employers are now offering to provide help with this issue via financial advice etc...because it makes their employees more productive. Certainly its a touchy subject but remember not even half of employers use credit as a screening tool.

Plus, If it encourages people to get out of debt and save that would be a good thing.

Quote:

Originally Posted by atlantagreg30127

Regarding exceptions to the rule, I see no reason why someone who owned a business that deals with money would want to hire someone who has filed for bankruptcy 3 times and has a credit score of 350. I wouldn't hire someone like that, and yes, if my business (bank, etc., as mentioned earlier) were hiring, I'd want to know if they were that bad with their finances. As far as the majority of OTHER businesses/positions that do not deal with money however, there should be no real reason an employer should need to do this. A call center employee, receptionist, or software developer for that matter, doesn't handle cash all day - their report should remain private, and their work history should be enough.

bayarea-girl · 11-03-2009, 09:03 AM

noah, people with bad credit are not less productive workers. That is a crazy comment. They probably are more productive workers because they want to keep their job and or get a job to pay off their debt.

noah · 11-03-2009, 09:06 AM

I agree with you that it makes sense some would be more productive but studies have shown that added stress they carry makes them less productive. Everyone knows someone who has got in a bind financially and the stress level can be overwhelming so it makes sense.

And then there is the other side. If credit reports are not even accurate most of the time this can cause a lot of problems.

http://clarkhoward.com/liveweb/shown...9/06/22/16030/

Quote:

Originally Posted by bayarea-girl

noah, people with bad credit are not less productive workers. That is a crazy comment. They probably are more productive workers because they want to keep their job and or get a job to pay off their debt.