Bad credit doesn't make for bad employees
|[graphic from Buffalo News]|
…researchers say there is no evidence showing that people with weak credit are more likely to be bad employees or to steal from their bosses…Eric Rosenberg of the TransUnion credit bureau said, in testamony before Oregon legislators last January, "At this point we don’t have any research to show any statistical correlation between what’s in somebody’s credit report and their job performance or their likelihood to commit fraud.”
The article, "As a Hiring Filter, Credit Checks Draw Questions," tells us that legislatures in states across the country are now thinking about restricting or disallowing the use of credit reports in hiring determinations. A bill has been introduced in California, but is now stalled "because of opposition from credit bureaus and other businesses."
In the U.S. Government, too, there is interest in stopping employers' practices of using credit information to filter out resumes. Rep. Steve Cohen, a Tennessee Democrat, hopes to introduce legislation he is set to author to that effect.
Further, the article tells us the practice of using credit checks "unfairly tars the huge pool of people whose credit was damaged by layoffs, medical bills or other factors beyond their control. They also say it disproportionately screens out minorities."
Too, credit checks screen out capable homeless people who are seeking jobs in order to put their lives back together. What a great shame it is that people most in need of employment are now being screened from getting employment by a means [ie, credit checks] that has no meaning in determining who might be the best employee.
A great many homeless people, having directly, personally suffered deprevations are especially motivated to be outstanding employees.
A recent post in California Credit Law blog, "Bad Credit Can Mean No Job," tells us this…
…The [Wall Street Journal] reports that 47% of employers check credit history for at least some positions. Most do so with respect to jobs with fiduciary or financial responsibility or for senior positions.
Employers can legally check credit if the applicant authorizes them to do so. Employment agencies point out that if the applicant refuses, there is little chance of getting a job.
Credit checks create a vicious cycle that prevents those who most need jobs from getting hired. At least one bill in Congress and some in the state legislatures would restrict credit checks except for specified positions.