Tag Archives: credit check

New Philadelphia Law Prohibits Employers from Using Credit Information of Employees and Job Applicants

 CreditReport

Written By ESR News Blog Editor Thomas Ahearn

The Philadelphia (PA) Ordinance No. 160072 that took effect on July 7, 2016, amends Chapter 9-1100 of The Philadelphia Code entitled “Fair Practices Ordinance: Protections Against Unlawful Discrimination,” by adding a section that prohibits employers from obtaining or using credit information regarding employees and job applicants in certain circumstances. Continue reading

CFPB Monthly Complaint Report Spotlights Errors on Credit Reports

CreditReport

Written By ESR News Blog Editor Thomas Ahearn

The Consumer Financial Protection Bureau (CFPB) has released the Monthly Complaint Report for May 2016 that shows consumers continue to complain about incorrect information on their credit reports as well as the difficulty they face in having these errors corrected. The CFPB has handled approximately 143,700 complaints about credit reports since they began accepting credit reporting complaints in October 2012. Continue reading

Study Finds Bans on Credit Checks by Employers May Lead to More Unemployment for Some Applicants

CreditReport

Written By ESR News Blog Editor Thomas Ahearn

A study of bans on credit checks by employers meant to help job applicants with bad credit find work revealed that people with mid-to-low credit scores, those under 22 years old, and – most surprisingly – African-Americans, were more likely to be unemployed as a result of these laws. Continue reading

Sprint Could Face Lawsuit for Alleged FCRA Violations during Credit Checks

 GavelFCRAClassActionLawsuit

Written By ESR News Blog Editor Thomas Ahearn

A complaint filed by a Chicago, Illinois man in Cook County Circuit Court claims that Sprint Corp. allegedly violated the federal Fair Credit Reporting Act (FCRA) by using non-compliant disclosure forms before checking the credit of job applicants, according to a report on the Cook County Record website. Continue reading

New York City Businesses Must Comply with New Law Banning Credit Checks by Employers

CreditReport

Written By ESR News Blog Editor Thomas Ahearn

With New York City passing the nation’s strongest ban on employment credit checks that took effect on September 3, 2015, businesses in the Big Apple need all the help they can get to comply with this new law that strictly prohibits most employers from using credit history to decide whether to hire, fire, or promote an individual. Continue reading

Bill Would Prohibit Employers from Using Credit Reports in Background Checks

 CreditReport

Written By ESR News Blog Editor Thomas Ahearn

Legislation introduced in the U.S. Senate – the “Equal Employment for All Act of 2015” – would amend the federal Fair Credit Reporting Act (FCRA) to prohibit employers from using the credit reports of job applicants and current employees during background checks for employment. The text of the legislation is at http://www.warren.senate.gov/files/documents/Equal_Employment_for_All_Act_of_2015.pdf. Continue reading

Consumer Financial Protection Bureau Begins Accepting Credit Reporting Complaints from Consumers

The Consumer Financial Protection Bureau (CFPB) has begun to accept consumer complaints about credit reporting, marking the first time consumers will receive individual-level credit reporting complaint assistance at the federal level. The CFPB already handles complaints on credit cards, mortgages, bank accounts, and consumer and private student loans. To file a credit reporting complaint, consumers may call 1-855-411-CFPB (2372) Toll Free or file online at http://www.consumerfinance.gov/complaint/. Continue reading

EEOC Must Testify On Own Use of Criminal Background Checks and Credit Histories for Employment Screening

A federal district Court in Maryland has ruled that an employer sued by the Equal Employment Opportunity Commission (EEOC) for alleged discriminatory use of criminal background checks and credit histories in hiring may compel the EEOC the testify regarding the agency’s own use of criminal records and credit information for employment screening. The ruling EEOC v. Freeman, D. Md., No. 09-2573, 8/14/12 is available here: http://op.bna.com/dlrcases.nsf/id/kmgn-8x7jwz/$File/freemanprotect.pdf. Continue reading

Credit Background Checks of Applicants Not Used by More than Half of Organizations According to Survey

A survey from the Society for Human Resource Management (SHRM) “Background Checking — The Use of Credit Background Checks in Hiring Decisions” indicates that more than half of the responding organizations – 53 percent – do not conduct credit background checks on any of their job candidates, a noticeable  increase from 40 percent in 2010 and from 39 percent in 2004. The survey of randomly selected HR professionals from SHRM’s membership is available at: http://www.shrm.org/Research/SurveyFindings/Articles/Pages/CreditBackgroundChecks.aspx. Continue reading

Consumer Financial Protection Bureau Adopts Rule to Supervise Larger Credit Reporting Companies

The Consumer Financial Protection Bureau (CFPB) has adopted a rule to begin supervising larger consumer reporting agencies – including the “big three” credit reporting companies Equifax, Experian, and TransUnion – for the first time at the federal level, according to a CFPB press release ‘Consumer Financial Protection Bureau to supervise credit reporting.’ The rule outlining the CFPB’s supervision of larger consumer reporting agencies, which will be effective September 30, 2012, is available here: ‘Defining Larger Participants of the Consumer Reporting Market.’ Continue reading