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Do Potential Employers Have The Right To Peep Into Your Personal Credit Report |
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Along with the onset of the computer age it was also the dawn of another era, the omni-present personal credit rating. Credit bureaus, which thrive on profits generated out of handling information about an individual's credit history, are witnessing a boom at the moment.
Consequently the rising
popularity of the computerized personal credit report has made its entry to the work place too. Now employers conduct routine credit checks on employees and job applicants using the personal credit report from the same credit bureau of credit card and loan providers. You are helpless in preventing employers evaluate your credit history to hire, promote or continue your employment. States may differ from each other in their laws but the US law allows employers to consult personal credit report for a decision on hiring with employment background checks. Firing, promoting and reassigning can also be done using this method. However employers are required to base employment decisions on major factors in your personal credit report. Employers pay a fee to agencies for consumer reporting, credit reporting or employment background checks for your personal credit report. Usually it covers certain topics including current and previous addresses, marital status, current and former employers, social security number, bankruptcies, liens and payments, child support, loan or credit card payment history, credit score, etc. The Fair Credit Reporting Act under federal law provides for data sharing by credit agencies with only legitimate business purposes to be entertained. Employers mostly qualify for it. Broad access to an individual's personal credit report is granted to determine in terms of employment, promotion, reassignment or retention. Thus for a prospective employer, the candidate's credit rating is literally an open book. Apart from keeping track of your bill payment patterns, credit bureaus also identify all companies that have asked for your credit rating on applying for credit, insurance, residence or new job. Consequently credit bureau files are increasingly sought by employers to prevent employees from job hunting. Also, prospective employers may be influenced against a candidate due to an uneven personal credit report. Nevertheless, the Fair Credit Reporting Act also grants certain rights for candidates to find out about their credit information being asked for by current and prospective employers. Your written permission alone can enable an employer to access your personal credit report. Details on granting permission are not to be hidden in the middle of a lengthy document but separately signed for your approval. This may sound heavy but the fact is also that refusal to grant approval to an employer's request may give rise to the suspicion of something amiss. That's all you need to ruin your chances of getting or keeping a job. An employer is under no obligation to approve you following your refusal of credit check. A prospective employer denying you a job, partly or completely on the basis of tour personal credit report needs to provide you a copy of the report before denial with written instructions on verifying the accuracy of the report. Although this sounds like adequate consumer security, in reality it can be difficult to ascertain if the employers have adhered to the law or crossed the line of legal limits. They can always claim that the denial was due to different reasons altogether from the negative entries of your personal credit report. An employer using credit information against you needs to confess doing so apart from providing you the name, address and contact number of the credit agency that the report originated from. The agency is obliged to provide you a free copy of the personal credit report. It is also your right to correct errors in your personal credit report with experts recommending checking and correcting your file every few years especially when job hunting or applying for credit. Finally in case of any suspicion of misusing your personal credit report, contact the state protection agency or attorney general to find out what options Tate laws offer. |
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