Oregon bans Employment Credit Checks (bout damn time!)

[Olo401]

http://www.oregonlive.com/politics/i...dit_check.html

The law originated from a concern that credit histories could be inaccurate or unfairly represent job seekers down on their luck, said Sen. Diane Rosenbaum, D-Portland,who sponsored the bill. Oregon unemployment is hovering around 10.6 percent, and people don't need another factor standing between them and a job, she said.

.....
Using credit histories can also lead to inadvertent racial discrimination because African Americans and Latinos generally have lower credit scores, he said.

There are better tools employers can use to learn about prospective hires, like criminal history or drug tests, Rosenbaum said.

She said the most convincing testimony during hearings on the bill came from a credit agency representative who said there was no link between scores and job performance. Credit agencies are paid to check credit histories for employers and will lose business with the new law.

As someone who's REFUSED employment credit checks every single time they're presented, I'll be glad when this goes nationwide. Employers have NO VALID REASON OR RIGHT to check someone's credit as a condition of employment. It's not a loan application, for fuck's sake.. Plus each credit lookup (except the first one you personally request each year) knocks your scores down 3 points.

[Mizango]

About time is right. My credit is fine but I too have always declined it.

[SephYuyX]

Im confused. Ive never heard of this before. Do people in some states sign on their employee papers that not only will they be subject to a drug and criminal test, but a credit check as well?

Or is this just the employeer going out to google and looking up their credit score along with their facebook profile and such?

If it's the first, then I still have never heard of anyone business doing this before, out of 5 jobs in the past 10 years, ive never come across it. If it's the second, this law being passed will do absolutly nothing as the employeer will still look it up, and then change the reason to not hire someone.

[Seanr]

I believe this is why I have not gotten a call back in over 2 years. How in the FUCK is someone supposed to pay their bills to get better credit if they cannot get a fucking job to make the money!?

[Olo401]

It's actually done more by large companies.. I've had it done as a condition of employment at several places over the years (Lechmere, Circuit City, Officemax, MetLife etc.) and even some temp agencies at the request of the client company. You get a form included with the application paperwork that'll say something like "I authorize whoever to perform this-n-that check..."

And it's a full-on credit report from all three agencies (Transunion, Equifax and Experian).. They typically use Lexis-Nexis for the lookup since you can do all three plus a civil/criminal records check at the same time.

[Correction]

Plus each credit lookup (except the first one you personally request each year) knocks your scores down 3 points.

I agree that employer credit score checks are bullshit but this right here I've read is a common misconception, and in the interests of keeping the misinformation levels down I'll show my sources:

http://consumerist.com/2008/12/hard-...dit-score.html

tl;dr

A hard inquiry is when a person or organization requests your credit score and history and they intend to make a lending decision. Applying for a credit card? Hard inquiry. Getting approved for a car loan or mortgage loan? Hard inquiry. Hard inquiries usually drop your score by a few points for six months, then their effect is removed. This is why it's usually NOT a good idea to apply for credit cards before you get a mortgage loan.

A soft inquiry is everything else. They are often used by a person or organization when they don't intend to make a lending decision, though there are exceptions from one institution to another. Landlords and prospective employers will use them to assess your financial risk. Banks often use soft inquiries to confirm your identity. When you check your own credit history, that's a soft inquiry. Soft inquiries have no effect on your score.

[Yuri-G]

I believe this is why I have not gotten a call back in over 2 years. How in the FUCK is someone supposed to pay their bills to get better credit if they cannot get a fucking job to make the money!?

welcome to the working world. the worse things get for you, the harder it is to make them better.

fucking sucks.

[Effluo]

Almost any position that requires you to handle money or monetary transactions will require a credit check. They want to make sure you aren't likely to steal, embezzle and all that stuff.

In the military, part of your security clearance is a credit check. If you have bad credit, they are afraid you might start selling secrets. On the other side of that, if you suddenly get into financial trouble and your credit starts to suck, they can also revoke your security clearance on those grounds alone.

In certain situations, I don't find it too instrusive, but if it's a position that has no interaction with money and shit, stay the hell out of my credit report.

[Seanr]

It's a wonder I haven't started workin the streets.

[Fodder]

Many financial institutions do this with the rationale "If you can't handle your own money, how can you be trusted to handle someone else's?"

[Seanr]

Slippery slope

[Correction]

Many financial institutions do this with the rationale "If you can't handle your own money, how can you be trusted to handle someone else's?"

Credit scores are not a very good measure of how trustworthy you are with your own money. There are a lot of ways to take hits on your credit (starting too late building it, for one) that have nothing at all to do with trust.

[Yuri-G]

I had no credit at all for the longest time... simply because I had no debt. I was in the black. you can't tell me I'm bad at handling my money if I don't have any debt.

and before anyone says it, yes, I know credit is supposed to manage your ability to handle debt. my point is, not having a good credit score doesn't automatically make you bad at handling money, nor does it mean you're in dire financial straits.

[Seanr]

basically shit happens, and the Big 3 credit system sucks ass.

[Melena]

Yea, my job with the Sheriff's office required a credit check to make sure i'm not so broke I may take pay offs from inmates or family's of inmates for favors. Certain jobs I think it's fine, but yea if your trying to flip burgers at mcdonalds fuck that shit.

Another reason/excuse I hear is to see how responsible you are. If you have unpaid debt from ten years ago you refuse to pay up on, they can take that as being irresponsible.

[Effluo]

basically shit happens, and the Big 3 credit system sucks ass.

This

[Quixon]

Good for Oregon.

I'm completely against this as well, even though my credit is perfectly fine. That being said I'm also against employee drug testing. Under no circumstances would I work for a company that does either.

I do understand where the argument comes in for certain jobs needing a credit check. But at the same time, it's isn't always the people that need money that go on to take bribes or steal. Look at all this ponzi scheme bullshit and white collar crimes going on now-a-days. Pretty sure most of those mother fuckers where well off living comfortably prior to there crimes.

Using credit histories can also lead to inadvertent racial discrimination because African Americans and Latinos generally have lower credit scores, he said.

Damn niggas..... pay your bills.

[Kuya]

So let me see if i understand this right, some jobs consider you too broke to give a job to even though you're looking for a job because you are broke? Is this right or are you guys exaggerating?

[eunhye]

Why do African Americans and Latinos have lower credit scores than me(asian)?

[Quixon]

Why do African Americans and Latinos have lower credit scores than me(asian)?

Obviously b/c you are well educated and have a steady job/income. Whereas Latinos/African Americans just sell drugs and shoot each other all day.