Posts Tagged: background credit check

When, Why, and How to Check Your Job Applicant’s Credit History

A few years ago, in the aftermath of the deep recession, a lot of ordinary citizens suffered financial losses that damaged their credit history. One reaction to this was a concern that employers would use credit history in making hiring decisions, potentially unfairly discriminating against otherwise responsible candidates. Several states did pass laws regulating how… Read more »

4 Ways to Stay Out of the FCRA Line of Fire

FCRA guidelines for employers

The Fair Credit Reporting Act (FCRA) is over 40 years old, but it is only recently that the number of class action lawsuits alleging violations of it have spiked. And unlike traditional legal actions the FTC took against credit bureaus and reporting agencies, these more recent lawsuits target check authorization services, banks, retailers, grocers, and… Read more »

In Other Non-News, 5% of Employment Credit Reports Have Errors

Employment credit reports have been in the spotlight in recent years as states battle over whether employers should evaluate workers on the basis of their creditworthiness. Employers routinely use credit reports—for financially sensitive positions and alongside other background screening measures—to assess a candidate’s financial responsibility and potential risk. One argument being played out in the… Read more »

The Background Credit Check Under Fire: Fair or Not?

Is an Employer’s Use of Background Credit Checks Appropriate? Under fire from consumers, state legislators, and the EEOC, the background check utilized by employers to judge individuals’ suitability for certain jobs is being challenged. The use of background checks and specifically the background credit check has been under intensifying debate among national and state officials… Read more »