Employers & Credit Check Ethics
You've finally got an interview for a job. You're getting your power suit ready and your resume is up to date, nothing to worry about, right? Wrong. Employers are jumping on the opportunity to learn more about their potential employees. While at first it may seem like a good idea, many issues have risen about employers abusing their utilization of credit reports.
Potential employees argue that it is unfair that employers are using credit reports to determine employment eligibility when the employee's credit has nothing to do with their ability to perform their job well. Credit can go bad for several reasons including lay-offs or large hospital bills. Others are think that employers will use their credit reports to discriminate and find any personal clues that the applicant may not be a desirable candidate. For example, if a potential employee has various hospital bills, the employer may discriminate for an assumed disease.
To counteract the abuse, people like Representative Luis V. Gutierrez (D-IL) and civil rights organizations like the National Employment Law Project and the NAACP are supporting and working to pass the Equal Employment for All Act. Introduced to the House of Representatives by Steve Cohen and 34 other Democratic Representatives, the act will prohibit employers from using credit checks to make adverse employment decisions. If this law is passed, the Fair Credit Reporting Act (FCRA) would be amended so that employers would not be able to check employees' credit even if they sign a consent form. The only exception will apply to those applying for positions that require FDIC or national security clearance; this includes jobs in government or state agencies.
As of this writing, the act has not been passed and still awaits revision and approval. Employers can still legally use your credit rating to determine your employment eligibility.
There are many reasons to repair your credit, whether it is so that a potential employer gets a great first impression or so that you can get approved for a credit card, your credit score will determine the next step in many areas of you life.
You can get a free credit report evaluation at ICC! A credit repair professional can explain to you how to establish better credit so that you can be confident on an interview and during an application process.
- Understanding Credit:
