Will Your Credit Report Disqualify You For a Job?

coondoggie writes "Two companies that fired workers and rejected job applicants based on background checks, without informing those people of their rights, have settled with the FTC for $77,000 in civil penalties. Most experts we talked to think this case is just the tip of the iceberg. The companies — Quality Terminal Services and Rail Terminal Services — were charged with violating provisions of the Fair Credit Reporting Act, which requires employers to get permission to look at individual credit reports. If you don't get a job because of information in your report, the employer must show you the report and tell you how to get a copy from the consumer reporting company. There is no charge for the report if you request it within 60 days of getting notice that you did not get a job."

Comments

Re:Dumb.

[evilandi]

Because, of course, bills are something which appear by magic and not something which are charged for services received?

If you can't afford the bills, don't ask for the services in the first place.

Good lord, it's as if Slashdot commenters today are a bunch of whining teenagers who live their entire lives sponging off their parents and never actually learn how to pay their own way... oh wait... I see the problem now.

Re:Dumb.

[evilandi]

Yup, credit reports exist in Europe. The main providers for the UK are Experian and Equifax, they may be familiar names in your country too.

You are correct in noting that someone with no credit history (ie. has always paid his own way) has an INDIFFERENT credit score.

An indifferent credit score will mean that you can get credit for small things (mobile phone contract, satellite TV subscription) but might have trouble getting credit for large things (mortgage, new car loan over GBP10k).

An indifferent credit score is NOT a BAD credit score. A bad credit score happens when you miss payments, or display activity which is extremely dubious, such as changing address several times in one year.

If you have taken no credit, you cannot miss payments (you have no payments to make) and you cannot have failed to inform your credit supplier of your change of address (you have no credit supplier to inform), ergo you cannot get a bad credit score.

Unless they make a mistake, which can occasionally happen, which is why all European countries, and I expect all first-world countries including those in North America, have data protection legislation which gives you the right to inspect, correct and clarify any data held about you, including your credit score.

Re:Dumb.

[bconway]

IMO, unless you work directly with cash or are in a position where fraud would be easy, employers have no right to that information.

Hardly. If you can't be bothered to keep your own personal finances in check, why on earth would I want to trust you with the operation of my business? You've already shown what little regard you have for things that should matter.