Showing Posts In "Credit Checks" Category

Credit Checks: The Good, The Bad and The Just Don’t Go There

Business leaders are able to answer important questions about an applicants’ ability to handle money responsibly by running a pre-employment credit check, but it is important to keep in mind that debt itself isn’t a problem; not repaying can be. While a credit check for positions that involve handling money can help keep employees, investors, […]

House Passes Bill Restricting Employer Credit Checks

The House of Representatives passed the Comprehensive CREDIT Act of 2020 that includes an amendment to the Fair Credit Reporting Act (FCRA), which would restrict the use of credit information for most employment decisions, except in limited circumstances. As of last year, 11 states and the District of Columbia have enacted laws that restrict the […]

Key Takeaways for Furnishers from the CFPB’s Recent Supervisory Highlights on Credit Reporting

The Consumer Financial Protection Bureau (CFPB) recently issued its Supervisory Highlights that cover its findings from examinations in the areas of credit reporting and the furnishing of credit information to consumer reporting agencies (CRAs). A few key takeaways include: The lack of procedures necessary to fit a furnisher’s “nature, size, complexity and scope of activities;” […]

STATE GUIDE Credit Checks: Restricted Use By Employers

Employers must be cognizant of applicable local, county, or state laws that may limit or prohibit their use of credit checks in employment decisions. Over the last several years, employers have moved away from considering an individual’s credit history for every position and every employment decision. However, some employers still find credit history to be […]

Why Employment Credit Checks May Soon be a Thing of the Past

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, […]

Reminder of Steps Employers Must Take When Requesting Credit or Background Reports 

Two recent decisions by the U.S. Court of Appeals for the Ninth Circuit have demonstrated how important it is for employers to take the proper steps to remain compliant with the Fair Credit Reporting Act (FCRA) when obtaining and using consumer reports for employment purposes. Employers should 1. Disclose in writing, in a standalone document, […]

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 […]


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