Tags: bill | introduced | credit | checks | job | applicants

Bill Introduced: Credit Checks Would Be Banned for Job Applicants

Image: Bill Introduced: Credit Checks Would Be Banned for Job Applicants

Thursday, 19 Dec 2013 06:31 PM

By David Ogul

Companies would be banned from using credit checks to weed out prospective employees under a bill introduced by a group of Senate Democrats.

“No one should be denied the chance to compete for a job because of a credit report that bears no relationship to job performance,” Sen. Elizabeth Warren of Massachusetts told reporters during a conference, according to the Washington Post. “For millions of working families, a hard personal blow translates into a hard financial blow that will show up for years in a credit report.”

Urgent: Do You Approve Or Disapprove of President Obama's Job Performance? Vote Now in Urgent Poll

Businesses, however, say a poor credit report can be indicative of an untrustworthy employee.

“A credit check can serve an important function in certain jobs, especially in the financial services industry,” Elizabeth Milito, senior executive counsel at the National Federation of Independent Business, told the Post. “A blanket prohibition would disadvantage many businesses that use credit as one component of a background check.”

The bill would provide an exemption for jobs that require a national security clearance.

The liberal think tank Demos says nearly half of employers use credit checks before they hire, including for positions such as maintenance clerks and delivery drivers. It argues that credit reports were intended to be used by financial institutions in determining whether to make a loan, not by restaurants looking to hire a dishwasher.

Backers of the bill say errors in credit reports are common, and that can lead companies to deny a job to a qualified candidate with good credit. CNN reported in February that as many as 42 million Americans have errors in their credit report.

“Errors in credit reports can cost you a loan, a competitive interest rate, a job, a security clearance and insurance, John Ulzheimer, president of consumer education at SmartCredit.com told CNN.

Companies currently are allowed to legally check a person’s credit history under the federal Fair Credit Reporting Act, but they must first secure a job applicant’s consent.

Editor's Note: ObamaCare Is Here. Are You Prepared?

Related Stories:

© 2015 Newsmax. All rights reserved.

Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
You May Also Like

UC Davis Ebola Case? Adult Patient With Virus' Symptoms Admitted

Thursday, 29 Jan 2015 20:25 PM

A patient with Ebola-like symptoms was admitted to UC Davis Medical Center in California on Thursday in "good" condition . . .

Mummified Mongolian Monk Found Sitting in Lotus Position

Thursday, 29 Jan 2015 19:54 PM

A mummified Mongolian Buddhist monk, which may be as many as 200 years old, has been discovered sitting in a lotus medit . . .

Ohio State Patrol Marijuana Bust: 235 Pounds Worth $1.2M Recovered

Thursday, 29 Jan 2015 19:34 PM

Ohio State Patrol officers recovered 235 pounds of marijuana with an estimated value of $1.2 million during a traffic st . . .

Top Stories

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved