Consumer Credit reports are a veritable
fount of information. They provide information on a person's reliability, sense
of responsibility, and financial stability.
This is especially critical information for those
being considered for positions with access to
company funds and/or the authority to disperse funds. Information on a Consumer Credit Report
can include: bankruptcy filings (within last
ten years), pending collection items, payment
history, and can help to determine if a person is
over extended in credit. In addition, a
Consumer Credit Report can provide personal
information such as: former residents, other
names used (maiden, previous married named, change
of name) and former places of employment.
Recently there have been several states propose or adopt legislation which would/have banned
the use of credit reports for use as an employment screening tool. Hawaii, Illinois,
Washington, and Oregon have already passed legislation to this effect, while many other
states are debating the subject. All prospective employers need to be aware of the
most current laws regarding consumer credit reporting for employment screening within their own states.
For more information please refer to HR3149 and Consumer Financial Protection Bureau (CFPB).