Bill aims to stop employers from conducting credit checks

Discussion in 'Too Hot for Swamp Gas' started by busigator96, Dec 19, 2013.

  1. busigator96
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    busigator96 Moderator

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    A federal bill introduced Tuesday would prevent employers from denying job applicants based on their credit.

    Senator Elizabeth Warren, a Democrat from Massachusetts, proposed the Equal Employment for All Act with six other senators. Under the bill, employers would no longer be able to require prospective employees to go through a credit check or reject them due to negative information in a credit report.

    http://money.cnn.com/2013/12/17/pf/...ampaign=Feed: rss/money_pf (Personal Finance)
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  2. gatorman_07732
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    I only agree with this in part, because if they're in a position where they are handling large sums of money then by all means a credit check should be appropriate.
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  3. G8trGr8t
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    your credit rating is a reflection of your ability to be responsible and live up to your commitments.

    why should an employer not be able to factor that into their decision for an important hire?

    will the fake native American ultralib want to exclude credit ratings from home mortgage applications next?
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  4. fredsanford
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    There is no reason for anyone to be checking credit except for financial services positions.
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  5. CHFG8R
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    Yep. Outside of that, there really is no reason for it. IMO, it's just become a formulaic concept within the HR community without any real basis in fact. Maybe the person with bad credit will be even more dedicated as he/she is needing revenue to address those issues.

    Again, just another example of the laziness of standardization. It's part of the HR template. Few if any really think about it. It's just another step in the process, another line to be crossed off the checklist.

    Of course, could be a real bummer for those in the background check business (my guess is they will be leading the opposition with respect to financing).
  6. gatordowneast
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    Elizabeth Warren (Feaucahontas) is pissed that someone checked out her "Native American" claims on applications to Harvard and University of Texas.
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  7. gatordowneast
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    Actually the credit check part of a background check is the least profitable area for background checking companies. They make far more on "employment verification" and other areas without the generic data bases.
  8. Spurffelbow833
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    It's insane to not be able to do credit checks on applicants for a loan officer position at a bank.
  9. QGator2414
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    There is no reason to provide a person a job except for labor services that benefit the business.
  10. QGator2414
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    We don't use a credit check but if an employer wants to then so be it. If the applicant does not want to provide one then so be it. They can go their separate ways.

    Why do we need a federal law regulating something this trivial?
  11. The_Ultimate_Gator
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    Will this apply to the feds as well? Last I checked, certain federal jobs also require a credit check as part of a security screening process. If the government can decide that a person with bad credit constitutes a security risk, why can't private industry?
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  12. CHFG8R
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    Yeah, but even at $1/head, that's still a pretty large chunk for a company that handles these duties for larger firms. I also suspect there will be HR types that just don't want the extra work. Guess they'll have to interview more people and do a better job at it than just use this to weed out a large portion of applicants.
  13. CHFG8R
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    Or someone who processes credit card payments, applications, etc. Obviously, there would HAVE to be exceptions.
  14. fredsanford
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    Because there is rampant discrimination against the jobless. Companies are looking for any reason not to hire people that need jobs.
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  15. gatordowneast
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    Anyone who works for a bank or financial institution has to be run through the FBI fingerprint data base now. So there are extra measures taken for those areas.
  16. QGator2414
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    What in the world are you talking about?

    Employers are looking for the person they feel is best able to get a job done for a certain wage.

    So if we want to use your ridiculous terminology...they are looking to discriminate against hiring someone they feel will not be worth the cost of labor vs the production provided. And they should be able to do that as they please to hire whomever they please. Obviously whoever they hire NEEDED the job so stop with the juvenile anti business implications...

    Did we "discriminate" against the applicants we did not hire?
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  17. gatordowneast
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    We deal with quite a few employers who all conduct background checks and most check credit. We've never had someone get dinged due to bad credit. DUI's....yes. Criminal background...haven't had that happen. Most large companies will not hire someone with a DUI or OUI within 3 years.
  18. cjgator76
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    cjgator76 Well-Known Member

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    According to the article, the proposed bill contains a specific exemption for government employment and security clearances. Apparently the sponsors don't think that the private sector has any legitimate information security concerns.

    The government isn't viewed as an enemy. Private industry, on the other hand.....
  19. fredsanford
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    They should no more be able to discriminate against those with bad credit as they can those that are black or disabled for jobs that have nothing to do with financial considerations or transactions.
  20. wgbgator
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    This is a fair point, but seems to apply only to positions requiring national security clearances, not just any sort of government work. I would only argue that the 4th amendment protects us from unreasonable searches & seizures from the gov't, but there is no such protection in the private sector, so such laws seem perfectly just, IMO due to the lack of anysort of constitutional protections for privately employed citizens.

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