Posted on 10/31/2009 5:34:00 PM PDT by hsmomx3
Had the same thing happen a couple weeks back on an interview process. Company called for a phone interview. Called back and scheduled a face-face. Then, called the day before the in-person interview and said I would have to bring along my current credit score/report.
I told them to pound sand.
Given the nature of the economy, right now, I can imagine that a lot of folks have suffered declining credit scores, for a variety of reasons. But, to base an employment decision on a snapshot of volatile data such as a credit report is simply unethical, in my view.
The notion of using the company credit card, or handling company funds is pretty lame, too. IF the company doesn’t have proper controls in place to minimize their exposure, then they deserve all the fraudulent use they enjoy.
And, of course, the company can order a credit report on their own time and money, if it’s that important to them.
Checking credit is a time-honored method of screening out flaky people, particularly individuals from legally privileged groups that are prone to screaming “discrimination!” whenever you dare to say no to them.
In housing, credit checks are ubiquitous in many markets, since you can’t really look at skills / lifestyles / background when deciding who to rent to. You might know intuitively that somebody is a troublemaker, but to keep the fair housing extortionists away you need to be using objective criteria.
Potential employers have a right to ask, but it would be a good idea to call the hiring manager directly so you know it’s not a scam.
It is likely that a reasonable employer will look for a long history of irresponsibility, or blatantly dishonest behavior (mortgage fraud, defaults on investment multiple homes), rather than recent trouble paying the bills due to the lack of income. If you had good credit for 6 out of the last 7 years, but slipped up 2 months after a layoff, the overall trend is largely favorable. If you are chronically in trouble, that is a red flag.
“There have been studies that show that the more financially risky someone is, the less reliable they are in other areas.”
Yeah there are also studies showing that looking at a womans breasts is equal to exercise for men. The credit scoring companies were most likely behind that study.
IMO its just another excuse to pry into someones personal life. If a person is unreliable it will show up in other areas of the interview process. Bad credit can have many causes, such as loss of a job.
I tried, repeatedly. He had a wife who sabotaged him at every turn. Unlike what others here say, workers with financial problems, awful spouses and bill collectors are more likely to lose themselves in work, rather than be distracted away from working. His job was his joy, his solace away from his real life hell. Sweet guy too, tore me up to see it.
I doubt that it’s legal when the employer hasn’t yet made a contingent offer of employment. The personal information needed to run a credit check is information that it’s illegal for a prospective employer to ask for prior to making a formal offer of employment. Even if it’s couched as “voluntary”, I doubt it would be legal, any more than putting a date of birth space on an application form with an “optional” label on it. It’s simply not legal to ask an applicant’s date of birth (though if the job is one that has a legally mandated minimum age, such as operating dangerous equipment, the application form or interviewer may ask if the applicant is at least that minimum age.
I believe in most states, any employer may run a credit check on someone they’ve made a job offer to. Lots of jobs don’t involve directly handling company (or clients’) money, but there’s still a big risk to employers from an employee who’s in bad financial straits (especially of long duration, suggesting habitual financial irresponsibility), and has above-average incentive to steal or sell sensitive company information about clients, etc. It’s even more worrisome if the scope of the applicant’s financial problems is such that the compensation being offered for the job clearly isn’t going to enable the employee to get their personal finances in order. If you’re 8 months behind on your $4000 a month mortgage, and applying for a full-time job that pays $30,000 a year, your financial problems are clearly going to be getting worse, not better.
I’ve had potential employers request my SSN as a means of tracking me through the interview process. Thats very poor practice as they are unlikely to control it properly.
There are also many cases of scumbags asking for this information to commit fraud. Make sure they are legit.
Where my husband works they run a credit check on you before hiring you. They don’t handle any money but they don’t like to hire people who they might have to deal with wage garnishes.
It's also illegal.
In the application package we hand prospective employees there is a form that asks for your signed permission to do a criminal and credit background check if offered a position. They don't have to sign it, but I would never hire someone who did not. Also in that form is a disclaimer that if any derogatory information is found, employment is contingent on passing both.
Your point in the second paragraph is right on target
I have interviewed literally thousands of people. I always bring up the financial aspects at some point in the interview process
I am very blunt and ask them "How much money do you need to make to be a happy productive employee, I am asking you not to pay you as little as possible, but if you need to make "X" and I am paying you "Y" and it is lower than "X" you will be a very unhappy employee pulling a second job or always looking to upgrade your job, so let's be honest about it. Can you live an "Y" because I would hate for you to waste my time and yours if you can't and leave in three months"
“He taught himself SQL, Database Admin and Oracle programming in 6 weeks!”
That employee sounds like an absolute dream. If he ever needs another job ... ;)
The most purely analytical person I have ever met. Too bad for him wives can't be properly selected that way.
Handling cash and company credit card a credit report or score is a legitimate question.
Now if the position didn’t handle money at all then I personally think it’s a violation of privacy.
I’ve read through 52 postings on this thread.
Has no one ever heard of Dave Ramsey? He correctly points out that a credit score is really a DEBT score. If a person has multiple credit cards and other debts that they pay on each month, they get a higher score. It does not mean the individual is necessarily a fiscally responsible person; i.e., good at managing their finances. It only shows that the person has a lot of debt because they can’t control their urge to spend money.
The car I now drive originally had a four year note. I paid it off in less than two years. I only use one credit card, primarily for the automatic monthly debit by my internet provider and occasionally for a large purchase like a airline ticket, hotel, PC or a TV. I pay the full amount due within no more than three months. I have no other debts, except utilities and mortgage. I operate on a cash basis for gas, groceries, etc.
Due to the way I have chosen to handle my finances, I probably have a very LOW credit rating because I have virtually no debt. ....Contrary to what the advertising and mortgage people constantly are spouting, a person with a low credit rating and no debt CAN buy a house, after proving why the rating is low.
Yes, it is legal, and it’s disgusting. Clinton and the dems pushed this into the (not) Privacy Act.
I’ve heard some real horror stories about this from good people who fell on hard times, lost their jobs, and it’s being used against them.
Ahh, gotcha, thanks.
Hi. I recently applied for a job at a real estate company in Queens, NY called Home Giants and today I just received the same exact email asking for my credit score. Same wording as yours’. Was this the same company?
I’m wondering now if they are shady.
Federal law SPECIFICALLY prohibits an employer from firing an employee just because they filed bankruptcy.
This is suspicious just like the prohibition about asking about transportation to work other than “reliable transportation” to prohibit discrimination against people who don’t have an expensive enough vehicle or use the bus.
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