pre-employment credit check

[idainc]

I thought I'd ask the group if there is a specific form to be used for a potential employer to access your credit report ? Must it clearly state that they are accesing your credit or can it state it in more general terms ?

It would seem to be a requirement that since inquiries can have anegative impact that there must be a clear indication that you are givng permission for a credit check. TIA !

[justbroke]

They usually aren't specific because they are called "consumer credit reports" in almost all "disclosure" letters provided to prospective candidates. What they are really looking for by pulling a consumer credit report is that your personal identifying information is accurate. A credit report is a good place to check where you've lived, SSNs you used, and any public records. Most employers are only looking at the "consumer credit report" to match your SSN and addresses. Some will use it for your public records.

Only a few look at the consumer credit report for your actual credit.

Employment inquiries do not count as a "hard" inquiry. As a matter of fact, they usually don't even show up in the "promotion" soft inquiry part unless pulled by a "service bureau" like Choicepoint (now owned by and called LexisNexis).

[idainc]

I signed a statement at the end of a job application that was fairly open ended. Something to the tune of " permission to contact anyone to confirm the above info ".

Didnt get the job so the thought came up as to whether they checked credit. I haven't looked at my reports since the discharge 3 weeks ago.

From the FTC web site - "Notice and Authorization. Before an employer can ask for reports about you from any companies that provide them, it must tell you that it might use the information to make a decision. This notice is separate from other documents you get — like an application. An employer may not get a report about you for employment purposes without getting your permission or authorization first, usually in writing. "

[Flamingo]

When you fill out a job application, there is a paragraph/clause, usually just before you sign, indicating that with your signature you allow them to pull your credit reports, do a background check, etc. If that clause is there or anyplace else within the job application or any other papers one signs prior to or after an interview, the only way to avoid not having the checks done is not to sign the document or application and not to apply for the job. Employers have their own services that they utilize run these checks and report back to them and they normally will appear on one's credit report at or shortly after the time you signed that document or application or had your interview.

[idainc]

After reading that FTC statement it seems to suggest that there needs to be a separate form for a credit check - one where, as they state, they request and receive permission to access your credit profile. It woul dnot seem proper that it is buried in an application where you allow them to check references for example.

Any thoughts ?

[Flamingo]

After reading that FTC statement it seems to suggest that there needs to be a separate form for a credit check - one where, as they state, they request and receive permission to access your credit profile. It woul dnot seem proper that it is buried in an application where you allow them to check references for example.

Any thoughts ?

If you read the clause/paragraph in an employment application (please note you may be given separate forms also to sign for a credit check prior to or during an interview), it will have certain wording that you allow them to do certainthings. One of them will be to obtain your credit reports/do a credit check. Thereby, with your signature, you authorize them to obtain it however possible. Always read paragraphs and clauses before you sign anything. Also, depending on the company and policies in place, there may be different forms, etc. to be signed for certain things. The only way to avoid a credit check is not to sign for one and give permission.

[idainc]

Come to think of it the word "credit" was not in any paperwork anywhere. Thanks for your responses.

[backtoschool]

Come to think of it the word "credit" was not in any paperwork anywhere. Thanks for your responses.

Trying to keep a prospective employer from checking your credit by not signing a release form, is only going to draw more negative attention to your application than if you signed the form and let them check what they need to check.

Most jobs in financial services will do a credit check. Most jobs in other industries will only do a credit check if you are handling money directly, have signing authority for money, or take contractor bids and might be open to bribes.

If the type of job you are applying for requires a credit check, and you refuse to let the employer do a credit check, then you are only eliminating yourself from consideration for that job. You have a much better chance of getting the job, even with a bankruptcy on your record, if you are honest and open (but only if asked directly) and have an explanation ready for why you filed. (again only if you are asked directly).

By the way, I work in the financial services industry, and I got my job after I filed for bankruptcy. The company I worked for did do a credit check.

[idainc]

In this case I would have been taking contractor bids for somewhat small amounts on an irregular basis.

I would tend to see the BK as a plus - since I dont owe a dime and would have made a good salary I wouln'd have had a need to take bribes.

In any event I'm going to presume there mst be some legislation to specifically allow a credit check to be done. In almost those exact words.