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Frank Chappell

I think that credit checks run by employers is bogus and should be illegal. People run into financial problem for many reasons other than just being a deadbeat. Illness, LAYOFF!!, and other issues. To me it is totally unfair for someone to be judged as a deadbeat by a potential employer based on bad credit. Credit Reports were originally designed to determine a persons eligibility for credit and to get loans, not to get a job. I think legislation should be put into place which bars employers from checking credit reports for the sole purpose of hiring someone. After all why do they have laws in place which prevent employers from firing someone because they have had to file for bankruptcy protection? Obviously this law recognizes the fact that honest and good people can get into financial trouble and have bad credit and they shouldn't be penalized by losing their job. The same SHOULD apply for someone who is just trying to get a job so that way they CAN pay their bills.

Posted: Sat Mar 17, 2007 10:18 pm Subject:

Your credit should have nothing to do with whether or not you make a good employee. I lost a potential job with Cingular because of my credit report had a bankruptcy on it and because I had a credit card and some medical bills. I don't think your credit report has anything to do with whether you can type or answer a telephone. It makes no sense to me.

Posted: Sat Mar 17, 2007 10:18 pm Subject:

I understand where you are coming from. I was unable to hire a number of good candidates at a prior job, due to their credit report.

Sounds like you were denied a job because of this. Were you up front about your credit report with your potential employer? In my former company, that made a world of difference.

Posted: Sat Mar 17, 2007 11:29 pm Subject:

I am not defending the employers, but there are a few areas where I can see the credit reports playing a role.

Unfortunately, the few bad apples .... employee theft is a very large problem that employers face. In the employer's eyes, someone who has good credit is managing their finances well and has no reason to steal. On the other hand, someone who has problems paying their bills/rent/car payment -- may be tempted to steal from the company to satisfy their problems. This is not to say anyone who has bad credit is a crook, but I'm sure you won't find any thieves who have good credit.

Also, suppose I am considering you for a position where you handle my money -- cashier, accounting clerk, bookkeeper, etc. -- As an employer, I may be inclined to say "if you can't handle your own finances, why should I trust you to handle mine?"

When we look at Equal Employment Opportunity, an employer cannot discriminate on the basis of sex, race, nationality, age. Nowhere does it say that an employer cannot discriminate against your previous credit history. If an employer has a policy in place that says a potential job applicant must demonstrate sound financial performance, then it is legal for them to deny employment if you have bad credit. The only way to change this, is to change the law itself.

Posted: Sun Mar 18, 2007 12:10 am Subject:

Not only money, but other financial and personal information. Name/Addy/Phone/Employer/Credit Card #/Checking Account/etc...

Posted: Sun Mar 18, 2007 12:24 am Subject:

True morningstar, wasn't thinking about that until you said it.

We've got about 20,000 unique individuals in our computer system, with their name/social/dob/dl# etc. If I was a devious person, I could probably go get some credit cards out in my customers' name. For this reason, my company has a bond out on me through our insurance company. If the insurance company refused to issue a bond on me, based on my credit, then my employer would not have hired me since I could not be bonded.

Look at a car dealership. If you are applying to be a car salesman, you better be able to drive a car. If the dealership's insurance refuses to insure you over a bad driving record, then the dealership won't hire you.

Posted: Sun Mar 18, 2007 12:43 am Subject:

[quote]I was a devious person, I could probably go get some credit cards out in my customers' name.[quote]

And this happens every single day in America. The employer also must take into consideration the damage on his/her own business' (for example, negative PR) that could be done by an unscrupulous employee. Sure, you go through the interview process, but they still don't get to know the "real" you. So they:

Call your former employers
Call your references
Follow up on your resume
Check your criminal history
Check your credit report
Check your driving record

They've got to do their due diligence to minimize the risk any given employee poses to them. Unfortunately, decent people sometimes get caught in the middle. That's why it will never hurt you to be proactive if a prospective employer does credit checks, and let them know if you have any issues. If they still don't hire you, then either a) you cannot be bonded, b) the company's insurance will not cover you, and/or c) maybe you really wouldn't be a good fit in the organization, anyway.

Posted: Sun Mar 18, 2007 9:56 am Subject:

Don't forget if you are denied employment based on credit report to get your adverse action letter from them and get your free updated report based on denial.

Guest · Posted: Sun Mar 18, 2007 1:22 pm Subject:

Can the background check include a credit check?

Posted: Sun Mar 18, 2007 1:25 pm Subject:

"but I'm sure you won't find any thieves who have good credit. "
Quote found in the above thread...
Um I know of several people who had darn near perfect credit who robbed a bank so that statement is very untrue...Having good credit does not make you a righteous or moral person....

Posted: Sun Mar 18, 2007 3:34 pm Subject:

Thanks for taking my words out of context. I wasn't implying that good credit makes a person righteous, or that bad credit makes one immoral.

BTW do you know these bank-robbers personally, to a point that you have looked at their credit report? I've never met a bank robber before.

Posted: Sun Mar 18, 2007 3:57 pm Subject:

I think it is just employers that deal with other peoples financial information that do this. They may be trying to check out your trustworthiness, who knows these days the employment arena is getting tougher and tougher. They can pretty much do what they want to for a pre employment screening.

Posted: Sun Mar 18, 2007 4:23 pm Subject:

I think as long as you are upfront about your situation, you will have a better chance (except as said above in situations where bonding or insurance plays a factor). I applied for a job a few years ago and when they told me they would run my credit I was sure I wouldn't get the job. I told them my situation, and still got a job offer.

The other thing I think sucks is auto insurance running your credit. What does that have to do with how you drive? I have a perfect driving record, but terrible credit. Luckily I've stayed with the same insurance company for years, so I got it before they started running credit. But I can't change now, or else my rates would skyrocket. My state even tried to make this illegal in the last elections. But the law didn't pass . . . .

Posted: Sun Mar 18, 2007 4:26 pm Subject:

But again, I say. I understand that they are wanting to look at this information if you work for a financial institution, but what does your credit worthiness have to do with a job for construction or for a job for customer service where you are not dealing with any monetary values?

Guest · Posted: Sun Mar 18, 2007 4:48 pm Subject:

I know that if someone is having financial problems it can interfere with their productivity. There is someone sitting by me who is on the phone and internet constantly trying to get out of her PDL and credit card problems. I know she has not put in a full 8 hour day for a month. Another co-worker is stressed out about his finances and misses a lot of work and is not quite all there when he is here. I feel for them, I have been down their road myself. But, if I were an employer I would never hire them. Financial problems need to stay at home no matter how much time is needed to solve them. So, I think a few people who have to bring it to work make it tough for those who go about dealing with their finances on their own time.

brenda22222 · Posted: Sun Mar 18, 2007 6:13 pm Subject: what ,what ,what.

You go and apply for a job so you can earn a living and try to get bills under control and an employer say's sorry no job bad credit.Doesn't make any sense to me.

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