Bad Credit=Bad Worker

[dajoki]

Bad Credit ≠ Bad Worker
by Janell Ross · February 05, 2011
http://news.change.org/stories/bad-credit-bad-worker

If you listen to politicians talk about America’s 14.5 million-person unemployment problem there’s usually a lot said about the seemingly double-jointed powers of tax cuts or government spending.

What you don’t often hear are the words “pre-employment credit screening.”

<<snip>>

Millions of unemployed Americans may be getting caught in a very serious feedback loop. They can’t find work because of their credit score. But, they can't improve their credit score because they can’t find work.

It seems employers looking to hire everything from shelf stockers to bank tellers, CEOs to child care workers are running credit checks on job applicants.

The theory behind the checks is simple: an employee with a poor credit history – particularly pending debt collection suits -- is under the kind of pressure that makes them prone to participating in fraud, theft, bribery and other ethical lapses on the job.

There is just one problem: there isn’t any evidence to support that idea. In fact, there’s ample evidence that just the opposite is true. It turns out that when employees are deep in debt, they tend to buckle down and work harder according to the Demos report.

<<snip>>

Tell Congress that its time to help Americans in the deepest financial trouble find the jobs they need.
http://www.change.org/petitions/pass_the_equal_employment_for_all_act_now

[Missy Vixen]

1. I'd like to see the credit reports of those in Congress

There, I said it.

It's long past time to abolish credit checks on any employee that does not work for the banking industry. Period.

[du_da]

2. Let's not

I think that would make me very sad to see the credit reports of the people who represent us. I wouldn't be surprised to find out that many of them probably couldn't buy a car from the we finance lots if they couldn't pay cash.

[OneTenthofOnePercent]

7. What about employees that work with sensitive or top secret meterial?

[SlimJimmy]

9. They are still subject to background investigations which include Drug and

Credit screenings.

[NotThisTime]

14. I worked in both military and finance, they needed the info to be sure I wouldn't be at risk for

bribes.... thankfully my credit was fine, but if you're in either of these fields with a low credit score, you are in big trouble trying to find another job. My last company, they could fire you at any time if your credit fell below a certain level and they found out. I'm not sure how often they checked as nobody I knew had ever had that happen....

[blondeatlast]

13. And/or their criminal records. nt

[Matariki]

3. Illegal in my state, thank god.

Pester your State legislators to make credit checks for employees ILLEGAL.

[ZombieHorde]

4. Nice. nt

[Starry Messenger]

5. k&r

[tabbycat31]

6. Credit checks only if relevant to the job

I would say any job where an employee has access to someone else's SSN is fair game for a credit check (banking, HR, etc). Anything that is not (cashier, stocker, childcare worker, trucker, etc) should not have their credit checked.

[NotThisTime]

15. I would agree with that...

[Gormy Cuss]

17. That again presumes that an employee with bad credit is more likely to steal or cheat

and there is no independent evidence proving that credit reports are a reliable indicator of that. There's no good reason to use them for any employment screen.

[XanaDUer]

8. I see a friend struggling with this very issue

disabled, lost job, bad credit. Now they also run them for you to live in an apt. A crummy, run-down, cheap apt.

So, he should live on the street b/c he lost a job through no fault of his own, and his credit went down the toilet.

AND - he keeps getting credit card offers! This whole country has gone nuts.

I can see these running of FICO scores, background checks, etc for a very limited number of jobs - access to money, maybe, and big money.

Working with little kids -

I don't see why a McDonald's worker has to turn pee over to work at a McDonalds.

I wonder what states this is illegal in?

[onethatcares]

10. what really sucks

is all a FICO score shows is how good you are at repaying a loan. It has nothing to do with your character, I've know out and out thieves that would pay their visa off every month.

What it does is create another excuse as to why no one is being hired.

Oh, btw, remember how many bounced checks our reps had the last time the congressional bank did a expose'? I don't think they've published a list since then and that was 1978.

[FiveGoodMen]

11. Here's what will happen

1) All social safety nets will be destroyed. You want to eat? Better have a job.

2) Employment tied to credit scores.

3) You want to live? Do whatever the banks order you to do.

This is what the "ownership society" is all about.

They will own us.

[derby378]

12. Sorry, kid - you can't get a job if you can't pay your bills...

...and you can't pay you bills if you can't get a job. Haw Haw Haw! Joke's on you, fucker!

And yes, I agree. Pre-employment credit report/credit score checks should be outlawed.

[Shagbark Hickory]

16. I think credit reports a very valuable tool for employers.

That said, I don't think employers (or ANYONE else for that matter) should be able to run your credit report.
And while we're on the subject, we need to dismantle this bullshit system where 3 very powerful private companies control the financial reputation of everyone in this country.
There is a place for this service, public sector.

[dajoki]

19. I don't know what you mean...

credit reports a very valuable tool for employers, but they should not be allowed to use them, which I agree with.

[ck4829]

18. K&R