Showing Posts In "Credit Checks" Category

When are Pre-Employment Credit Checks Allowed

A handful of states, including California and Nevada, have enacted laws that ban the practice of pre-employment credit checks. Others have pending bills for similar bans. A recent survey has revealed that 60 percent of United States companies perform a credit check and review the applicant’s credit history as part of the hiring process; however, […]

Should You Consider a Candidate’s Credit Score in the Hiring Process

Despite the argument that a review of a candidate’s credit history is an invasion of privacy, it is important to understand that this is an important part of the hiring process. A credit check allows employers see things like a candidate’s ability or inability to handle their money, whether or not they can make major […]

Why Background Checks and Credit Reports Should Be a Core Part of Reputational Risk Management

According to the Global Survey on Reputation Risk by Deloitte, reputation damage is the primary risk concern for business executives around the world so it’s important to make background checks and credit reports a core part of risk management. Credit reporting, strictly governed by the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau […]

Philadelphia Expands Ordinance Limiting Employer Use of Credit Checks

Legislation has been signed by Philadelphia Mayor Jim Kenney that amends the Philadelphia Fair Practices Ordinance. Effective Feb. 20, 2021, the amendment expands the scope of covered employees under the Fair Practices Act to include financial institutions and law enforcement agencies operating in Philadelphia, which were previously exempt from the ordinance’s requirements. Specifically, law enforcement […]

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, […]


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