Employers Finally Get Banned from Credit Checks

Haven’t you wondered why employers often stake their decision whether to employ you on your credit?  Think about it employers, if we don’t get the job, doesn’t that make us less likely to pay the bill?  You would think that they would want to help out if they look up our credit score and find that we have a few financial indiscretions.

Well, now it’s being reported by creditcards.com, that a Congressional committee is finally building legislation to ban the use of credit checks in the hiring process.  A couple states have already banned the use of credit checks.  But, if the committee is successful, it will be reviewed and hopefully implemented for the nation.

The other harsh side of these employer based credit checks is that this practice is not just for those potential employers working with money, finance or other people’s property it has branched over into every area.  The report stated that “These days, 43 percent of companies conducting any type of pre-employment screening use credit checks for some or all employees, according to a 2006 study by the Society of Human Resource Management.

The reason congress may get involved on a wider scale is due to the recession and Wall Street’s nose dive.  They don’t want to see people get caught in a catch 22 of never turning the unemployment numbers around.

Read here for more info on what they’re doing to make sure you get the job.

3 thoughts on “Employers Finally Get Banned from Credit Checks”

  1. I’ve been working with the Department of Defense for the last 12 years, 10 of those years which has been 24 hrs a week part-time. I got a divorce 9 yrs ago and was forced to make ends meet on a 24 hrs schedule while trying to raise 2 chlidren. In 2009 I was offered a management position within the company(keep in mine my credit status is still the same, poor)which I sold my house and my daughter and I moved to another state(Florida) where I knew noone. Prior to me accepting this position I had a security check done on me in 2008 only to have them to pull a credit check on me in 2009, 7 months after I have held the new position. Now I’ve been denied to continue to work as a manager because it is being said I am a surcurity risk because of things on my credit from 8-10 yrs ago. If there is any one out there that is reading this and you can help me on the issue please respond back to [email protected]. I am an American citizen,have my BA in Business with a continuation of my MPA, tax payer with no criminal record and I am being treated like the very opposite.
    Thank you
    Lena Smith

  2. there is a federal bonding program since 1966 that will issue a bond directly to a potential employer if they offer a job and provide a start date for “at risk” job seekers such as someone who has poor credit, no credit, is dishonorably discharged or an ex offender. there is no cost to the employee or the employer. i am a desperate job seeker who has been unemployed for 11 months and living on child support & alimony payments totalling $700/mo while trying to pay the mortgage, utilities, credit cards, car loan and feeding 2 kids and a dog. i cant make it all work so some of the bills have slided by because creditors accept my reasonable repayment plan but charge off my account anyway, after 6 months i had to get food stamps to eat and after 7 months i had to get on fuel assistance and after 10 months i cant afford to pay for dog food so now my yellow lab is eating human food and it’s the 11 month and i cut the cable. next cut will be the phone/internet & i kept it on for the purpose of fielding job offers but after 50 applications & 15 interview i finally received a phone message from a potential employer that they cant offer me the job because of my credit. i was in the high 700s after my divorce in 2008 but i’ve hit rock bottom when i left my job in april 2010 for a better paying one only to have that not work out & i’m ineligible for unemployment. i am searching for ways to get a job & i stumbled on the federal bonding program but it requires a bona fide job offer and start date from a potential employer so i have left a message asking them if they want to re-offer so i can get bonded because every employer is considering me as a at-risk employee although i have been working for over 15 years in the ssme field. i’ve also called my state bonding coordinator for assistance because i need money to pay down my debts especially as my mortgage is coming up on being 3 months in arrears which triggers the foreclosure process….wish me luck

Leave a Reply

Your email address will not be published. Required fields are marked *