Massachusetts gubernatorial candidate calls for a ban on credit checks

7/27/2010

Another state politician today added his voice to those that are calling for an end to employment credit checks.  Massachusetts Independent gubernatorial candidate Timothy Cahill announced today that in the fall he will support legislation to restrict credit checks on job seekers.  Massachusetts has not yet seen legislation on this issue, and Cahill will seek a partner in the legislature to introduce the bill.  According to Cahill:

"Often the things that are being used against them - like missing a credit payment, maybe a mortgage payment - are caused by their unemployment...It's all about trying to give the middle class and people who are on the edge ... a fair and equal chance to get job opportunities."

To read the full story, click here.

 

CNNMoney on credit checks

7/22/2010

Chris Isidore from CNNMoney published a good piece today on the rise of employment credit checks and their effect on job seekers in today's economy.  In this excerpt, he focuses on one man from Nashville whose divorce and layoff left him with bad credit:

James, a cashier from Nashville who asked that his last name not be used, admits he had bad credit when the store he worked at closed in October 2008. He said he soon had two job offers at other stores, but that both disappeared when his credit history was checked. His unemployment left him homeless for a time in 2009.

James attributes his bad credit to a divorce a few months before he lost his job. "I did the best I could, but at one point, it was make my car payment or make my child support payment and I picked child support. They repossessed my car," he said.

To read the full story, click here.

 

AP: More Americans' credit scores sink to new lows

7/12/2010

The Associated Press published some striking statistics today on the impact of the economic crisis on Americans' credit scores.  Here is an excerpt:

Figures provided by FICO Inc. show that 25.5 percent of consumers — nearly 43.4 million people — now have a credit score of 599 or below, marking them as poor risks for lenders. It's unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.

What this article fails to point out is that this large and growing group of people whose credit histories are now tarnished from unemployment may be locked out of employment due to their credit situation.  Also, because there is no standard among HR professionals as to what constitutes "bad credit," the group of people kept out of work due to their credit may be much larger than 25 percent.  The time is right for our legislators to pass HR 3149 to end the Credit Catch-22 and put people back to work.

To read the AP story, click here.

 

SF Chron Op-Ed: It's time to end job hunters' credit catch-22

7/6/2010

Joe Ridout from Consumer Action published a compelling Op-Ed in today's San Francisco Chronicle, laying out the case for the passage of AB 482, Assembly Member Tony Mendoza's bill to restrict credit checks in employment in California.  According to Ridout:

Credit reports are a faulty selection tool because they reveal little about one's moral character or integrity. In truth, they reveal more about the times in which we live. During high unemployment, credit reports can be particularly misleading. More than 6.5 million Americans have been unemployed for six months or more, which means that more bills are paid late. Does this mean that someone without money to pay his bills will make a substandard worker? No research has found such a correlation.

To read the full Op-Ed, click here.

 

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