The Restricting Use of Credit Checks for Employment Decisions Act (the “Act”) was one of four bills being considered that would reform the Fair Credit Reporting Act (FCRA) and the credit reporting system. Proponents of the Act contend that a credit check fails to account for circumstances not discernable on the face of the report, often perpetuating the cycle of unemployment and poor credit for applicants who desperately need work. Its focus, however, lies in addressing the disparate impact employment credit checks have on African American and Latino communities. If passed, employers will have two years to either adjust or eliminate the use of credit checks for most positions.
