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Bill Preventing the Credit Report From Being A Deciding Factor For Jobs

By Faye Mergel
Published: Saturday, April 3rd, 2010

Bill preventing the credit report from being a deciding factor for jobsYou wake up one day into the world of sorrow, listening to a string of words quoting you’re laid off. Soon you are pushed into reality, and you realize you are among the 4 million people who are waiting for a job for over six months to ease your financial crisis.

What do you do? The bills due roll in faster than ever. Your payments for car, house payments and utilities, your medical expenses crash on you when you’re most unprepared. You try new jobs, where again you are held a top candidate but you’re not chosen because of obvious late stage checking of credit! And you try hard to get a job to improve your monetary status, but your finances not allowing you to get a job!

To prevent such a situation, a sigh relieving house bill was introduced this month. Employers would be prohibited from using the information off the consumer’s credit report just to make hiring decisions according to equal employment. The Act is made exceptions only in government agencies and financial firms and other jobs which did need security clearances. Efforts have been made by the legislation to make sure that the employers have a limited capability of using credit details for hiring them.

As per the existing reports, credit checks were used to screen the candidates for government and financial jobs. Now that practice has expanded tremendously. A recent research proved that these days many companies used credit report details to hire employees. Rep. Steve Cohen introduced this bill in favor of certain young vulnerable, recent college graduates, students, low income people and families, senior citizens and certain minorities, thus increasing their chances of getting a good job.

Matthew Levine, vice president of Check past, a Dallas-based pre-employment screening firm states that these days most of the employers who check credit details don’t get the account number or credit score of the applicants. They check for red flags or strikes like trouble in payment of departmental stores bills or late payments on medical bills.

There are good securities to safe guard the credit screening process. The new bill will modify the fair credit reporting act where the employers need to inform the applicants about their act of screening used in the hiring process and the applicants should be allowed to authorize the credit checks. The employers will be required to refuse a new hire and to give the workers copy of their credit report and the company’s plan’s notifications. The employees can then verify to make their reports accurate.

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