Is it a legal form of discrimination to require a credit report on personal finances for job employment?

Question

If your finances become difficult because of a life circumstance (such as divorce) that doesn't mean my character or my work ethic should be compromised. To me that is defamation of character. What happens to a 20+ work career with managment references and promotions becomes compromised due to a life altering change and I choose to keep those private issues just that...private until I am able to resolve??

Answer 1

A credit check should be used only where the information is necessary for job-related purposes. Court cases under Title VII have held that requiring good credit as a condition of employment can have a discriminatory result, since disproportionately more non-whites than whites live below the poverty level. Even if a credit check is necessary for the job in question, the Fair Credit Reporting Act (a federal law) requires employers to notify applicants if they are not hired due to the information contained in a credit report. Moreover, some state laws, such as in Maine and New York, require employers to notify applicants when a consumer credit report is requested.

You can also look here for some helpful information:
http://www.privacyrights.org/fs/fs16-bck.htm

Answer 2

Many employers now have a standard of ethics which includes their employees being ethical and paying their bills on time. It's not that unusual. They have a reputation to protect and don't want employees in credit trouble having creditors hunt them down or call while on the job. If you're to be a good example of being able to work in personal finances, one would assume your own to be impeccable. At least that's the way the employer looks at it...right or wrong.

Answer 3

Yes it is - if a person went through serious medical problems and had serious financial problems because of it - that to me is~ how can you look at a credit report and know why the persons credit was ruined? A person works hard - two jobs most of their life and then a crisis hits and then they can't get a job because of a credit report. Sad - shouldn't be legal.

Answer 4

Fair Credit Reporting Act (FCRA)

Employers who have a business need to evaluate and monitor employee credit problems, and who use credit reports to do so, should also be aware of the Fair Credit Reporting Act. The FCRA requires employers who deny employment on the basis of a credit report to so notify the applicant and to provide the name and address of the consumer reporting agency used.

Penalties for non-compliance: actual damages, punitive damages, attorneys' fees.

Answer 5

I don't know really. You may be able to go to Google, and find out, but, if a company does that to EVERYONE who applies for the same position, it's probably not discrimination. Another thing is, is your credit score can show your resposibility on the job, because you are who you are in the mirror, and without one.

Answer 6

This is a very good question.

I personally believe that unless the post you are applying for is one in financial services or one that involves managing a budget, financial details are of no relevance.

So the answer is yes - or perhaps more accurately - it's an intrusion of privacy.

Answer 7

An employer can check your credit report if they want to do so for some reasons, but I am not sure if they are looking for financial details, but mostly they might check the public records of any violation, bankruptchy, debts etc..,

Answer 8

Personally, I don't know. But if you are applying for a job in the financial district or are looking to work for the securities and exchange commission I can see the relevance. To any other types of employment, I say its uncalled for.

Answer 9

Sense financial responsibility is a big part of who a person is, it is also a good way to determine just how that person will perform his/her job, especially if it is a managerial type job that deals with any kind of money.

Answer 10

I don't know about the discrimination aspect, but yes, it is illegal to request or require that a job applicant provide financial information.