Credit Rating Discrimination in West Virginia (Charleston, Washington: rentals, mortgage, good credit)

[David Kennedy]

Several states have began to scrutinize the effect of a poor credit rating on potential new hirees.

West Virginia began this type of discrimination in the early 1980's when a critical downturn occured in the coal industry.

Washington politicians brought new industry to Wv with federal jobs.
Their intention was noble..the problem was, few in Wv remained with a good credit rating.
Cars and homes had been repoed from people who had made their payments promptly and religiously.

Now, credible studies have shown that events happen in life and a less than excellent credit rating has nothing to do with a person stealing from an employer or compromising classified information.

I remember as a realtor during that time period...over 90% of the potential move-ins from DC had poor credit ratings and couldn't buy homes here...the answer was to provide rentals for them and a huge rental market exploded in that venue.

With the huge negative employment problem in this country now, credit buying will be a needed vehicle to get any style of economy started.

West Virginia's legislature may address this problem, but not in time for this session.

And the time has passed for any reconciliation to an entire generation of middle-aged honest people who could have worked in those federal jobs and were passed over because their credit rating was negative and as such, were a potential risk to the government of this country...

What a crock of s&*t that was...many were veterans who had shed blood for this country...and everyone knows that those who compromise the security of this country rarely, if ever come from the ordinary rank and file..

Anxious to see how this unfolds in the near future...California being the leading voice of change..

Have any of you, or your families been victims of Credit Rating discrimination?

[WVPhoenix]

I have a friend who has a master's degree in history (BA in business management) who has been unemployed for almost two years. She has, she estimates, applied for over 300 jobs in over 30 states in those two years. She's gotten less than 15 callbacks, and has yet to secure a job. She can't pay off her student loans, let alone anything else. Her credit is shot to hell, and she fears its costing her jobs for circumstances beyond her control.

I have a lot of other friends with college degrees who are in the same boat. They're leaving WV to find jobs, only to find there aren't jobs anywhere, and end up back in WV, again, without a job. And to be perfectly honest, 15 hours a week at the Town Center on minimum wage isn't exactly a job.

So many people are losing their jobs, taking massive pay cuts, losing hours, etc., across the state and country. If you're working with national security, or with large amounts of cash at the bank, I can understand a credit check. But if you're just folding t-shirts at the Gap? Why?

I'd fully support legislation against credit checks in determining the filling of opening positions. If they don't, we're probably going to be facing millions of educated, hard-working Americans who won't be able to find a job.

[Silkdashocker]

Originally Posted by WVPhoenix

I have a friend who has a master's degree in history (BA in business management) who has been unemployed for almost two years. She has, she estimates, applied for over 300 jobs in over 30 states in those two years. She's gotten less than 15 callbacks, and has yet to secure a job. She can't pay off her student loans, let alone anything else. Her credit is shot to hell, and she fears its costing her jobs for circumstances beyond her control.

I have a lot of other friends with college degrees who are in the same boat. They're leaving WV to find jobs, only to find there aren't jobs anywhere, and end up back in WV, again, without a job. And to be perfectly honest, 15 hours a week at the Town Center on minimum wage isn't exactly a job.

So many people are losing their jobs, taking massive pay cuts, losing hours, etc., across the state and country. If you're working with national security, or with large amounts of cash at the bank, I can understand a credit check. But if you're just folding t-shirts at the Gap? Why?

I'd fully support legislation against credit checks in determining the filling of opening positions. If they don't, we're probably going to be facing millions of educated, hard-working Americans who won't be able to find a job.

That's pretty sad to hear of stories like this. There are cases like that all over the USA right now, not just in our little corner of Appalachia. A lot of my friends who i attended college with moved back to their home states, only to find the job market back home wasn't any better than what we have here in Charleston. When i was out in San Diego last spring, i met up with a friend of mine who i played football with in college. He has a family of 4 now, and he's struggling to get by out there. He was probably the one guy on our football team, who i figured would find the most financial success in life after college; so far, it just hasn't happened for him yet.

[David Kennedy]

Finishing that Degree and being saddled with the horrendous college loan debt load is almost as bad...the income to debt ration kills them every time...

"Hi, Mr. HR...I've got my Bachelors and need a job.."

"Sorry, your low Credit Score will not allow me to hire you...

What is the answer?

Sorry, people...the answer is the Armed Forces...simple and true...at least for the younger crowd.

The older go on...and eventually get caught in 'Age Discrimination....lol...

The answer?...Give it up, go to another country like India or begin your own business.

Not all of the answers, but a few..

[Threerun]

The last bank I worked for we had a code of ethics and 'proper personal management' was one of them. The rules were a little lax for back-office and entry level positions, but as an officer I was held to a more stringent standard (and rightfully so).

I feel that it is certainly appropriate in some cases (and certain positions) to require particular standards, and it IS an employers right to choose what those standards are.

Now what we didn't do was to rely on some regurgitated scoring model as the base line to decide who gets hired or fired. In fact, we opted out of the Fair Issac scoring model for credit decisions as well. The individuals credit history is reviewed and if needed, questions are asked. There are certainly explainable events that can be overcome.

I would imagine that as more and more individuals suffer bruises and bumps as a result of the economic conditions that standards or practices will be modified. However I can tell you this- I wouldn't hire someone if their history showed a pattern of credit abuse, or they walked away from say a mortgage obligation. But that's just me. And if I was hiring- I would certainly like the right to bar someone if the situation warranted such.

[David Kennedy]

Extremes certainly exist..and border on the criminal.

The '80's in Wv were a pivital point. Federal agencies and federal connected factories and repair facilities were coming into Wv and the regular people could not get the work.

The were unqualified because of credit problems...these were not 'welfare scammers working the system.
And those in the southern part of the state, who had totality relied on coal as an income, were in even more dire straits.

People come to me for a job often, and I speak to each of them the same way...
I say.."Forget the resume', it means nothing to me. Who do you know, that I know? How much experience do you have?
I'll try you out for a week, if you don't measure up to what we want, I'll pay you what we owe you and say goodbye."

A few years ago I tried to use ex-convicts as an exercise in altruism...over a period of 4 years, I used about 8 of them...out of the 8, 2 have been great. One is still with us...the murderer. He has been the most loyal, the hardest worker and is worthy of any help we can give. The other, a former drug dealer, has his own sucessful business and is also an upstanding member of the community. He came to me a few months ago and said this..."I've paid off all my debts...it's taken 15 years to do that...I'm finally a free man." and he is...

[pknopp]

Individual examples don't make the case but in my experience I'm thinking there is more to this than what's on the surface.

In 1995 I was able to land one of the better jobs in the state (for a non college grad) despite having less than steller credit.

I was like many in trying to raise a family on low paying no benefit jobs. My poor credit wasn't a hinderance. My score is now 780. So while I'll certainly agree that credit score doesn't reflect on what kind of employee one would be I also think there must be more to this story than what is on the surface.

[Hinton Bound]

"Cars and homes had been repoed from people who had made their payments promptly and religiously." Cars and homes DO NOT get repoed when you make your payments promptly and religiously. Now, if they STOP paying promptly and religiously, that's different. If they made 10 of 20 payments, then stopped, should they lender just say "what the heck, you can just keep the car- after all, you made 10 payments!"


Masters in History? Maybe they should have investigated the need for Advanced history degrees before heading down that road. Nothing irks me more than someone getting a degree in an oversaturated, low demand field, then bi*ching about not finding a job. You made the poor decision, no one did it for you. Yeah, it's fun to kick back during college with an easy major, but you will pay for it when you're out in the world. Keep in mind, there aren't many unemployed Engineers/Doctors/Lawyers or Nurses. Always grinds me how teachers complain of low pay. Did they do no research BEFORE they decided to become a teacher???

"[C]redit buying will be a needed vehicle to get any style of economy started" Huh? Let's see: you don't have a job, and/or can't pay the bill you already have incurred yet you want someone else to loan them MORE money?? How will going further into debt start the economy or produce a job? Is this the like "spending our way out of the recession"? How about LESS debt?? Maybe LESS spending of money you DON'T have???

"Sorry, people...the answer is the Armed Forces...simple and true...at least for the younger crowd." Why are you "sorry" about this? Is there some shame or disgrace in serving your Country now? Is it only acceptable for those able to do nothing else?

I see nothing wrong with using a credit score to let an employer know how responsible a potential employee is. If you have poor credit, it's because you did not hold up your end of an agreement. Like your potential job- you are making an agreement to show up to work and do a specified task. I wouldn't hire you if you have failed to uphold your end of previous agreements. What would indicate that you won't do the same to me?

[David Kennedy]

1. Some people had paid their payments for years, on time..my neighbor for one...only owed $2200 on his house when it was repoed.
No market for any sale...just like some areas of the country now.
Bank made a hefty profit when it was sold to a buyer from NY.

2. Many areas of this country is in a very severe situation.
Some type of credit purchase plan will be needed to stimulate those areas...Cash is too slow...credit buying is AN answer.

3. Sorry? I'm not sorry at all...the armed services is a trememdous opportunity for those who have the courage to seek it out.
Sorry...because it's so simple. Never any disgrace in service...
My Army Major son was put through Med School by the service...was free.

Credit Discrimination has existed for good workers in West Virginia and Age Discrimination too.

Both have hindered and limited a workforce that could have benefited from good peoples service.

This has been discussion...a stating of a problem.

As an employer I have the Right to Hire and Fire....and I do that...my critera is my own and I respect the hiring practices of every other employer in this state...
I'm not the FBI, I don't care if your mother-in-law is a druggie or ex-convict...if I want a roof shingled, that would be the last question I would ask you.

Hope all of you keep your jobs, are able to pay your bills and keep the staus quo.

If you lose your job, I hope the check keeps coming in and nothing ever gets repoed...lol, a dream is a dream, because in life the cycle closes...it opens and it closes...for everybody...

[pknopp]

I'm still confused as to the point here. Are you saying that those who don't make their payments should just be allowed to keep whatever they are not paying for?