Class action law suit against employers who check credit scores?

Question

Does anyone know about any legal action taken by the public to curb or stop the practice of a Credit Check to get a job. It sounds like discrimination to me and should be illegal.

Answer 1

It's not discrimination because it doe's not meet the Federal guidelines defining discrimination.

And it's not illegal because you do not have to agree to it, it's your choice weather you want to let a potential employer look at your credit or not.

It very well may cost you the job if you don't agree but that's just the way it is.

Several studies have shown that people that are not responsible with their own credit are not responsible as employees especially if their potential job would include handling money.

And as a former owner of two businesses I would never hire anyone that refused a credit check but that's just my opinion.

Answer 2

too many inquiries during a twelve month period ...

this was on all 3 of my credit reports which was knocked down 200 points by my job applications all over town and on line job applications.

every application triggered a credit check.

20 application a week x's 52!! thanks alot!!

The employment office is breathing down your neck to get a job, and you are trying to get a job, and you can not get a job, because of too many credit checks from employment applications!!!

That is just so wrong!!

I will not permit a credit check again for that reason.

I have worked retail most of my life handling $

Answer 3

And why do you think it should be illegal?

If you work in a bank, you work with other people's money.

If you work in retail, you work with other people's money.

If you travel on business, you are spending your company's money.

Etc.  If you can't manage your own money, why should they let you touch their's?

Answer 4

I've never had an employer ask to do a credit check.  Sounds illegal.  What business is it of theirs?  What does credit have to do with how someone performs a job?

I hope they get what's coming.

Answer 5

They do credit checks to see if you have bad credit.

If you have no credit from not borrowing money it's not a problem.

So if you are one of these people that worship the credit score and have defaulted on loans. Or have an IRS lean. Your in trouble.

If you are someone that doesn't have a credit card and borrow money. Or should I say someone who is responsible enough with money not to borrow with credit cards. You'll be ok.

Answer 6

It's not illegal.  It is not permissible for them to check FICO scores for pre-employment purposes, though.  They typically can view accounts, account details & status, and inquiries.  This is permissible by FCRA guidelines.

Like others listed, employers do it to determine how responsible you are with money.  Mostly financial organizations run credit checks, but more employers are beginning to since they feel it reveals how trusworthy their candidates are.

EDIT:

One person mentioned that their score dropped due to employers checking credit - this is NOT true. When employers check credit it is a "soft inquiry" for employment purposes and does not affect your actual credit score, however it will show as an inquiry on your report for your own knowledge.

Answer 7

If you have no problems, what are you worried about?  Are you telling me you don't care if cops or bankers or whatever have access to your personal information and you care if they're broke or have a gambling problem on the side and now have access to all that money?  You're probably just another person with screwed up credit trying to blame someone else as usual...

Answer 8

The reason I was given for this practice in a background check was to determine if a potential employee was a likely to steal, or be influenced by people offering bribes.

I've only ever heard of it for government jobs requiring clearance, so perhaps its just something common to the industry you work in?

In any event, this has not yet happened to me.