Credit Reports for employment purposes

Credit Reports for employment purposes.

By Carl Slicer, October  10, 2009   

 

In 2009, the State of Connecticut legislature, House Bill 5521, the Labor & Public Employees committee took up a bill to consider “Outlawing” consumer credit reports to be used in hiring people.

I wrote my congressman and asked him to recommend what way he would vote. His answer was he would vote in favor of “Outlawing” the consumer credit reports. When I read his letter, it was mostly from the stand point of the consumer angle.  And the person that had been through tough times with financial debt accumulated over medical services rendered.   I wrote back from the Employer angle as well.          

Credit Reports work very well for all involved.

First the FCRA, Fair Credit Reporting Act, allows easy access for a consumer to correct or comment if there is an error or special comment need to be placed on the report.

Secondly, the report is all encompassing.  If a person were to have 4 credit cards, 2 automobiles, a department store charge card and a gasoline card, that would account for  8 accounts and 24 months of  history remarks. Or 192 facts of how this person’s managed their money for the last two years.

Last are public remarks. If you are sued in civil court,  declare bankruptcy that is approved, owe the IRS back taxes or owe Child support in the last two states you lived in, this is reported.

So the next time you consider handing over the keys to the new store manager or the books to that new CPA you just hired, the employer has the need to know who is minding the store or keeping the back door closed at the loading dock.

PS: The State of Conn Senate did not agree with the House and therefore this bill did not become law.

 

Carl Slicer, blog editor, www.BestHire.com