Employment is a mutually agreed upon contract devoid of force.
If the employer and employee cannot come to a common agreement on the methodology of qualifying the employee for employment, they shake hands and part ways.
This in no way violates your financial privacy.
Yes it does. Mind you I am not referring to what happens after a person is hired and what probationary conditions might be placed upon a new employee such as going through a background check which might include a credit report. I am referring to whether an employer should have the right to see your credit report as part of the process of pre screening applications. That is what I have a problem with and not with any contract a new hire and an employer might arrive at. This also means the employee can take action to correct any errors in advance of the check or explain any negative findings.
The employer can certainly make known that a check will be required as part of the condition of probation and the employee can decline to go any further in the process.