Hiring Consultant Warns: "No Connection Between Credit History And Job Perfo...

Hiring Consultant Warns: "No Connection Between Credit History And Job Performance" [Discrimination]

via Consumerist by Carey on 8/8/09

Almost half of all employers use credit reports to judge job applicants, even though credit histories have no relation to job performance. Personal finance goofs are only relevant for jobs that deal directly with money—cashiers, account managers, and the like. For everyone else, negative credit reports keep otherwise capable people from securing a job to help avoid further financial problems. So why do so many companies still ask for credit reports?

Hiring consultant Nancy Schuman explains:

Some companies believe they can deduce how a person will handle their job responsibilities based on how they handle their personal finances. Others use the information to gauge how long a person might stay in a position if their debt load is higher than a position pays. It is also used to verify employment history and a social security number.

There is no clear connection between a credit history and job performance, and many job seekers consider it to be an unfair way of screening candidates, however, no Federal discrimination law specifically prohibits employment discrimination on the basis of a bad credit report. The Fair Credit Reporting Act (FCRA) and state credit laws help to regulate how an employer can obtain and use their findings. An employer must gain your consent in writing to do a credit check and the report they receive is different than one viewed by a credit agency or an individual. Full account numbers are not revealed and they won't see a credit score, but they will be able to see late payments, collections and bankruptcies. If you are actually denied employment because of your credit report, the company must notify you so that you may view the report on which the decision was based.

An accurate credit report is best defense against a discriminating employer. Every year, consumers find 13 million errors staining their credit reports. Request a copy of your report from each of the three credit reporting agencies at AnnualCreditReport.com (not FreeCreditReport.com!) Challenge anything that looks like an error. If you can't scrape strikes from your report, talk to your potential employer clearly and honestly and help them understand what led to financial transgression, and explain how it is completely unrelated to your future job performance.

Does Bad Credit = A Bad Candidate [Long Island Press via Fair Credit Reporting Act]
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Sprint, AT&T Won't Tell Identity Theft Victim Where Thief Resides [Identity ...

Sprint, AT&T Won't Tell Identity Theft Victim Where Thief Resides [Identity Theft]

via Consumerist by Phil Villarreal on 8/6/09

Fearing his identity would be stolen, Mike put out a fraud alert on his credit report to insure he'd be contacted whenever new credit applications went out under his name. The move paid off because someone snagged his social security number and tried to open accounts with AT&T and Sprint.

Both were courteous enough to call Mike and deny the thief's attempts at opening the accounts, but their helpfulness stopped when Mike asked to know where his assailant was:

I got a call from AT&T asking to verify that I was opening a new account with them. I said no I'm at home. They apologized and then said they will halt the application process. I said, tell me where this is occurring so I can file a report. They said they couldn't divulge that information as it's private and due to the privacy act they cannot discus such information over the phone, I ask to speak to a manager they said nobody was available.

Next up Sprint. I got a call Monday 8/3 asking the same thing. This time I lost my cool. I demanded some sorta retribution for this. I asked repeatedly why they could not help me. They suggested I speak to their fraud department. I said well thanks that may help. I then call Sprints fraud department and got the runaround. It would seem that somebody would have to open an account in your name for them to actually be able to help you. I again speak to a person that gives me this "privacy act riot" I again ask to speak to a manager and was denied.

I went online and did a search on what to do, problem is I'm not sure how to file a police report if I don't know where this is occurring from. I filed a very brief FTC complaint. And I already have a Fraud alert. I also requested my credit report from one of the credit agencies (however due to my fraud alert I have to give my first born child in order to get it as I'm not able to view over the internet.

So bottom line. I'm at my wits end. I don't know where else to turn. I don't even know how they got a hold of my social as I'm very very anal about giving it out and shred all of my papers that would've had it. I don't even carry my social card with me it's in a fire proof safe at home. The only thing I can think of is I recently bought a house and switched my cell phone into my name. So either Verizon or somebody at a bank stole my info.....

At least Mike is better prepared than most identity theft victims. But his story is a cautionary tale that no matter how careful you are, you're always vulnerable to such attacks, and won't necessarily find potentially defrauded corporations in helpful moods.

(Photo: Spidra Webster)