Category: Consumer advocates

credit score, employers, Consumer Reports

Today, Consumer Reports stated, “‘Your score is used by lenders, insurers, and even prospective employers, to judge how great of a credit risk you are,’ says Amanda Walker, Consumer Reports Senior Project Editor.”

Consumer Reports is not telling the truth.  The consumer reporting agencies do not provide credit scores for employment purposes.

Those shenanigans go way back:

Today’s email to Consumer Reports:  

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Thursday, January 26, 2012 10:19 AM
To: Walter D. Bristol, chairman, Consumer Reports, Consumers Union
Subject: credit score, employers, Consumer Reports

Correct this, fire James A. Guest, then resign.

https://twitter.com/#!/creditscoring/status/162542622710312961

—
Greg Fisher
The Credit Scoring Site
creditscoring.com
PO Box 342
Dayton, Ohio  45409-0342

 

credit score, employers, Center for Responsible Lending

From: Greg Fisher 
Sent: Tuesday, March 30, 2010 10:51 AM
To: julia.gordon@responsiblending.org
cc: drshow@wamu.org
Subject: credit score, employers, Center for Responsible Lending

In response to Diane Rehm’s question about credit score use in pre-employment screening, you did not disagree with the premise:  Employers use credit scores.

What evidence suggests that employers use credit scores?

What is the name of an employer who uses credit scores?

(:47:07)

DIANE REHM:  We have heard from various callers and e-mailers that if you walk away from your home– if your credit score is bad-bad-bad– that your next potential employer may look at that score– may look at that record– and that that record could be held against you.  Julia?

JULIA GORDON:  More and more employers are doing credit checks before they hire somebody.  So, ruining your credit score can have all sorts of anticipated and unanticipated consequences, which is why, again, I would really encourage people:  If your credit is good, and you have the opportunity not to become delinquent on a loan, please don’t.

Insurance credit scores in Michigan

From the Michigan Supreme Court:  “The Court will also hear oral arguments in Insurance Institute of Michigan v Insurance Commissioner, in which the plaintiffs, a group that includes insurance companies and individual customers, challenge administrative rules aimed at prohibiting insurance scoring, the practice of using consumer credit report scores to set personal insurance rates.”

The Insurance Institute of Michigan states, “A 2007 study by the Federal Trade Commission found that credit-based insurance scores are effective predictors of risk under auto policies.

The Michigan Office of Financial and Insurance Regulation contends, “Credit information has been found to contain such a high rate of errors that there is an unacceptable likelihood that persons will be misclassified,” and cites studies by U.S. PIRG and the Consumer Federation of America.