Employment Credit Checks-Common Myths

[OhioFiler]

I've been right in the action where you have someone with bad credit/BK on their records and compared to someone else with a similar background and skills and it will come down to the person with the clean record. I'm not saying that is done all the time; however, it is done a lot and the applicant not getting the job gets the letter that it was a hard decision to make but someone else got the job. The entire scenario of credit checks and credit profiling is difficult to swallow but is done by employers to protect themselves and their other employees/business from embezzlement, theft and fraud. Unfortunately, the stigma of bankruptcy affects anyone who has filed and it is the result of those bad eggs that have filed being hired and embezzling, stealing checks, opening fraudulent accounts, stealing cash, etc., etc. and it makes it hard for all the good folks with good employment backgrounds to get that foot in the door. Hopefully someday the selection process will eliminate a lot of the stigma from those that truly should get the job.

As long as there is a BK on one's record, one needs to be on their toes to have a bright, shining credit record after discharge (no late or nonpayments on anything), go back to school if needed to add or change skills, and keep resumes updated. Getting a job is selling yourself to the employer and how you will be a benefit to the company and help make them money. One should not let a BK deter them from applying for a job; be prepared to explain you had a bad life event, you have recovered or are recovering, and could do a hell of a job for their company if hired...

Bingo! THAT is the money quote. If you are the best candidate for the position you most likely will get the job. Companies aren't stupid. They won't throw out the best most qualified choice and settle for someone less desirable simply because you had a financial problem once.

[OhioFiler]

Most small business won't do extensive background checks and will have less restrictive hiring requirements than large corporatioins.

Worst case, if you think your unemployable because of BK, start your own business. Then you make the hiring decisions!

[Pizza]

I think you are essentially on the right track here Pizza. 45% of employers are checking credit, and they are using it in ways that differ greatly, not just in a "you have bad credit, forget it" way.

Exactly! Let's say you had a resume stating stable employment history for 5 years, but other multiple other employers show up as references on credit apps from two years ago. "Credit check" often means verification of specific items. Not always, but often times that's what they are for.

[enuffznuff]

Move to oregon. Passed into law in June employers can't do it unless they are finance, law enforcement, or if it's substantially job-related, which they defined as meaning 'access to financial information beyond the scope of a retail transaction" or if the employer has to use the individual employee's credit history for bonding or insurance.

If you're in banking/finance, I guess you still have a problem, but most jobs are not credit checkable in Oregon anymore. Senate Bill 1045
SECTION 1. Section 2 of this 2010 Act is added to and made a part of ORS chapter 659A. SECTION 2. (1) Except as provided in subsection (2) of this section, it is an unlawful
employment practice for an employer to obtain or use for employment purposes information contained in the credit history of an applicant for employment or an employee, or to refuse to hire, discharge, demote, suspend, retaliate or otherwise discriminate against an applicant or an employee with regard to promotion, compensation or the terms, conditions or privi- leges of employment based on information in the credit history of the applicant or employee.
(2) Subsection (1) of this section does not apply to: (a) Employers that are federally insured banks or credit unions; (b) Employers that are required by state or federal law to use individual credit history
for employment purposes; (c) The employment of a public safety officer who is a member of a law enforcement unit,
who is employed as a peace officer commissioned by a city, port, school district, mass transit district, county, Indian reservation, the Criminal Justice Division of the Department of Justice, the Oregon State Lottery Commission or the Governor and who is responsible for enforcing the criminal laws of this state or laws or ordinances related to airport security; or
(d) The obtainment or use by an employer of information in the credit history of an ap- plicant or employee because the information is substantially job-related and the employer’s reasons for the use of such information are disclosed to the employee or prospective em- ployee in writing.

Key word up there: OBTAIN
They can't run your credit. I suppose if they wanted they could run public records and see the BK, and you'd have to prove they used it in the hiring decision. But it definitely helps.

[leena]

That is great news about Oregon. I think it is a good law, but frankly ought to be even MORE restrictive about what they can check credit for. "Access to financial information beyond the scope of a retail transaction" is open to much interpretation. However, a law like that will probably make the vast majority of employers not do checks for anything other than law enforcement or finance. Or of course CEO type positions where all bets are off (they interviewed neighbors for a guy in my neighborhood who was up for a CEO slot).