Showing Posts In "Credit Checks" Category





Using Credit Histories in Employment Decisions: An Overview of Divergent State & Local Requirements

Ten states, the District of Columbia, and the cities of Chicago, New York City and Philadelphia have passed laws restricting the use of credit reports used by employers for employment purposes. Bills also have been proposed in the U.S. House of Representatives and the Senate regarding consumer credit information and employment. The Equal Employment Opportunity […]


Curtailing Credit Checks

Some argue that information uncovered in a credit check could offer clues as to an applicant’s likelihood to commit embezzlement or theft, but a bill considered by the D.C. Council Judiciary Committee would largely prohibit employers from screening for such information. The Fair Credit in Employment Amendment Act would make credit information a protected trait […]


D.C. Bill Protects Job Applicants’ Credit Histories

Washington, D.C., has joined 11 states, New York City and Chicago in an effort to prevent employers from conducting credit history screens for job applicants. The D.C. Council Judiciary Committee unanimously passed The Fair Credit in Employment Amendment Act, which amends the city’s Human Rights Act of 1977 to include “credit information” as a protected […]


Mississippi Attorney General Jim Hood Announces that Experian, Transunion, and Equifax Will Overhaul Credit Reporting Practices, and End Deceptive Marketing in Mississippi

Attorney General Jim Hood announced today that the nation’s three major credit reporting agencies will overhaul their business practices and two of the agencies will offer Mississippians unlimited access to free credit reports over the next three years in order to resolve the Attorney General’s investigation into the agencies’ mistakes on credit reports and deceptive […]


Credit Reports – How to Look for Warning Signs

Checking the details of a credit report can be hard to understand, but a focus on an applicant’s social security information can raise important red flags. Items like fraud alerts, date issued, authenticity of issue, light credit files, and cross-referencing the Death Master File Index can all point to potential problems. Read more


New Orleans Adopts Legislation Prohibiting City Contractors From Conducting Employment-Related Credit Checks

The New Orleans City Council recently approved legislation making it unlawful for city contractors to seek or use the consumer credit history of a current or prospective employee for any decision regarding the hiring or compensation of an employee or the terms, conditions, or privileges of his or her employment. The ordinance, entitled the “Equal […]


Credit Reports – How to Look for Warning Signs

Although credit reports are used to evaluate financial capacity to replay loans, they also are used to determine potential alerts during background screenings. Information regarding social security information is an optional component of a credit report, but could include valuable information such as social security fraud. Details like date and location of issue should be […]


Study: Credit-Check Bans Lead To More Bias

A new study finds that when employers are prohibited from looking into applicants’ financial history, African-Americans become more likely to be unemployed compared to other demographic groups. Which is odd, the story notes, considering that studies find little evidence that possessing a clean financial record has anything to do with being a good worker. Regardless, […]


Proposed New York City Bill Would Ban Credit Checks from Hiring Process

The New York City Council’s Committee on Civil Rights recently debated a proposed bill that would ban employers from using credit checks to evaluate prospective employees. The bill, called the Stop Credit Discrimination in Employment Act (the SCDEA), would create a blanket ban on using credit information for hiring purposes, with a narrow exception only […]


Credit Checks On New Hires Declines

Fewer employers are conducting credit checks on job candidates than two years ago, according to a recent survey by the Society for Human Resource Management. Fifty-three percent of firms say they do not use credit reports in their hiring process, up from two years ago, when only 40% did not use reports. “Employers are paying […]




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