Washington State Senator Seeks to Limit Employer Access to Credit Reports
It’s become fairly routine for prospective employers to check an applicant’s credit report as part of the screening process, but recently some citizens’ groups have begun to protest the practice, pointing out that it limits the ability of people with past financial problems to make positive changes, and often on grounds that have nothing to do with the jobs they’ve applied for. Other consumer advocates point to studies indicating that at least 25% of credit reports contain serious errors.
A 2004 survey indicated that about 20% of employers conducted credit checks before extending any offer of employment, but other data indicates that the number has increased dramatically in the short time since the survey was conducted.
Now, Washington State Senator Steve Hobbs (D, Lake Stevens) has introduced a bill that would prohibit employers from using credit reports as a screening tool except in specific industries, like financial services and public safety.
June 4th, 2008 at 6:18 pm
home loan down payment…
This is a helpful analysis. Judge Posner, do you have any ideas to share on the new bankruptcy law? I have not begun to research it yet. Here is what I am interested in: is it your understanding that medical bankruptcy is now also changed under the new…
August 8th, 2009 at 10:37 am
fix your credit…
Is credit repair a“ scam”? Not the credit repair companies that I am familiar with- their clients enroll, pay a fee and generally graduate the program with higher (usually high enough to qualify for a mortgage) credit scores. That would seem to dis…