The Conservative Cave
Current Events => The DUmpster => Topic started by: Freeper on July 27, 2010, 08:41:06 AM
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Liberal_in_LA Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:03 PM
Original message
Employer Credit Checks May Soon Be Illegal
Posted July 23, 2010 Employer Credit Checks May Soon Be Illegal
By Jeanine Skowronski
Here’s the bad news: A majority of employers pull credit reports of prospective employees during the interview process. According to a survey conducted by the Society of Human Resource Management , 60% of employers admitted to screening an applicant’s credit before filling some of their openings.
The good news is that the cycle may not continue for much longer. Many states and even the federal government are taking steps to ensure that a candidate’s bad credit report isn’t issued to evaluate a prospective employee, especially since the report was never intended for that particular use.
Additionally, Larry Lambert, President of Employment Screening Services, Inc., explains that a credit report pulled for employment purposes doesn’t contain an actual credit score. Under the Fair Credit Reporting Act, that is illegal. Once obtained, the report will disclose mortgage and consumer debt payment records, delinquencies, charge-offs, levels of debt and personal bankruptcies. As such, many employers use it as a defacto character reference, essential to determining whether or not an employee can do the job in question. Employers can’t pull your credit report without your permission, but most jobseekers will sign off on the request forms for fear of losing out on the position.
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These sentiments are why three states – Washington, Oregon and Hawaii – have banned employers from arbitrarily pulling credit histories. Sixteen other states are currently trying to implement similar legislation. Additionally, according to The New York Times, Rep. Steve Cohen (D-Tenn.), is pursuing his own legislation that would prohibit employers nationwide from using credit checks to discriminate in hiring.
All versions of these laws, in essence, prohibit employers from pulling an applicant’s report unless there is a clear, legitimate business reason for it. For example, Lambert explains a maintenance company wouldn’t be able to request a credit history when they are hiring a janitor. They would, however, be able to if they were hiring a company accountant.
http://www.mainstreet.com/article/moneyinvesting/credit...
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8819635
This will be good news for people who found themselves on hard times and couldn't keep up with paying their bills.
bobbolink Donating Member (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:04 PM
Response to Original message
1. What about for renters, or for car insurance?
All of this is just evil.
Yeah it is pretty evil to find out if potential tenants skipped out on the last landlord. :whatever:
Recursion (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:09 PM
Response to Reply #1
2. The rental thing really, really pisses me off
I screwed up my credit at one point because I put off paying my credit card bills in order to make my rent on time, and then that locks me out of housing for 3 years.
The same people who are screaming that its immoral to not be given a mortgage if you are breathing are the same ones bitching about the mess we are in now where a large part was due to handing out mortgages like candy.
ejpoeta Donating Member (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:10 PM
Response to Reply #2
4. i guess people with bad credit should just have to live in their cars??
that is crap. why should past history necessarily affect current situation, considering you generally have to give first AND LAST month rent as well as a security deposit to get an apartment. if you don't pay your rent, then they can kick you out can't they?
You ever seen what it takes to kick a person out? It costs here in FL at least $600 to file with the sheriff then you have lost money while the person squats in the apt for several months. And most likely once the eviction notice is posted the person living there will tear the place up to get even with the evil landlord for kicking his non paying butt out. The money that is lost gets passed on to future residents and the people working for the landlord may not be able to get a raise this year.
So landlords are crazy for wanting to make sure that renters will be good tenants. :mental:
KansDem Donating Member (1000+ posts) Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:11 PM
Response to Reply #1
5. I agree...
One of the impressive characteristics of Americans is their ability to spring back from adversity. But how do you do that with all these "boots in the back of your neck" practices form CorpAmerica?
It's getting more difficult...
Yet you don't mind Obamas boot on your neck about health care.
hamsterjill Donating Member (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Mon Jul-26-10 04:34 PM
Response to Original message
8. I'm getting a bank loan right now.
The bank ran a credit check, and I got the subsequent letter in the mail explaining my credit score. One of the comments in the "negative" section is that I don't have any installment loans. In other words, my car is paid off, and that is a ding against my credit.
Somehow I would think a paid off car loan should be in a positive column, but it isn't. When you have the foxes guarding the hen house, what can one expect?!
No way should credit reports keep people from getting jobs. I hope it becomes illegal in all 50 states.
I never did understand why paying off something could hurt your credit rating. Common sense would tell you that you are low risk if you pay off stuff early. Although financiers lose money from interest however they did make money off of you and you aren't costing them money for having to go after you.
xchrom (1000+ posts) Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list Tue Jul-27-10 07:47 AM
Response to Original message
28. any more it seems that you need a credit check for being alive. nt
Well if we are owed govt money simply for being alive and required to have health insurance for simply being alive then its not to far fetched to think we need credit ratings to be alive. :lmao:
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I never did understand why paying off something could hurt your credit rating. Common sense would tell you that you are low risk if you pay off stuff early. Although financiers lose money from interest however they did make money off of you and you aren't costing them money for having to go after you.
I can explalin that to you, friend. The primitive overstated their case by saying that not having an installment loan was a "negative." It's only a negative in the sense that they don't currently have an installment payment, therefore, they don't have something current in that category (intallment payments) in which to score.
I agree with you that paying off something early shows you can handle yourself and you're a lower credit risk. A creditor wants to see that the person knows how to budget, so typically this means they're looking to see payments on a commodity that lasts at least one year. They figure a year (in most cases) is long enough to determine if that person knows how to budget over a period of time. You pay it off early, and it kills the track record they use to make the determination. That's what could hurt your credit score, that they don't have the complete (one full year) information of which to evaluate.
I know, it's weird. But that's the reasoning behind it.
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You ever seen what it takes to kick a person out?
GAAAAAH!! Don't even get me started. New York is horrible. Landlords have zero rights. It's almost like you're expected to give away housing for free, out of the goodness of your heart. And, like some people know Workers Comp law and Disability law down to the letter, there are certain renters who know NY rental law. If they were only so fastidious and diligent in other aspects of their lives.
You're damned right I'm going to be damned careful who I rent to. I have a dream couple right now, but I'm losing them. Their new house construction is ahead of schedule. :bawl:
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I'd say it should be good for rentors. I lost a house with 10 acres of property because the rentors stiffed my father on 3 months of rent, stole all the major appliances in the house, and dissapeared.
They got away with it scott free, the person punished was my father because he ended up having to foreclose and I lost the house I was supposed to co-own/buy from him.
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I'm torn on this one--an employer has a right to know before hiring you if you're a trustworthy individual, or if you're going to be a security risk because you're in debt up to your eyeballs. I still have to give my financial information periodically if I want to keep my employment here, but it's not as if being late on one car payment six months ago is going to get me fired.
By the same reasoning, a lot of people aren't getting jobs because of circumstances beyond their control which forces them to file for bankruptcy or credit counseling, which totally screws them over. I think if one can have their credit pulled, they should be allowed to explain any negatives on it.
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http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x8819635
I never did understand why paying off something could hurt your credit rating. Common sense would tell you that you are low risk if you pay off stuff early. Although financiers lose money from interest however they did make money off of you and you aren't costing them money for having to go after you.
In addition to what USA4ME said creditors look to see that on the off chance you cut and run on them they aren't the only ones left holding the bag. That in itself doesn't make a lick of sense but it is what it is.