Category: Employers

Alleged use of credit scores by employers in pre-employment screening.

The enigmatic realm of credit scores at CNBC

Following a question from creditscoring.com regarding a CNBC claim that “only .5 – 1 percent of consumers” have achieved an 850 credit score, CNBC amended a January 4th story on its website.  The error and its correction is not documented.

The original statement was, “MyFICO.com says that only .5 – 1 percent of consumers have achieved this golden number.

The corrected statement is, “MyFICO.com reports that only 13% percent[SIC] of consumers have achieved scores over 800.”

However, in July, (after questions from creditscoring.com about an Associated Press report) Fair Isaac, the company who owns myFICO, removed the distribution chart that included the 13 percent statistic, and said that it would replace it.  The credit score company, still, has not provided the replacement.

Despite that, in October, the U.S. Equal Employment Opportunity Commission heard remarks from the National Consumer Law Center regarding a conclusion cobbled together about the credit score national distribution.  The NCLC’s notion that one-quarter of consumers have a credit score under 600 was attributed to Fair Isaac, and the notion that those under 600 comprised only 15 percent before “the Great Recession” was attributed to the Associated Press. 

A FICO spokesman said that the AP used the 15 percent statistic “as a proxy for a pre-recession distribution curve.”

On April 13, introducing a segment titled “Credit Check: Career Killer?,” a CNBC anchor asked, “Does a credit score– especially a high one– indicate a better applicant?”

The consumer reporting agencies all claim that they do not provide credit scores for employment purposes.

Canada – Pointage de crédit junk journalism from ValueClick

In an item on the Globe and Mail website, an Investopedia article contends, “Credit scores range from 300 to 850.”  However, in Canada the “pointages FICO vont de 300 à 900.”

In the U.S., the FICO credit score scale is 300 to 850.

Investopedia (who is actually based in Canada), a division of ValueClick, provides junk journalism articles to Hearst and Forbes, too.  Martin T. Hart is the chairman of ValueClick according to Forbes.  Whether you choose to believe Forbes about that is entirely up to you.

Zillow and SF Chronicle believe Fed credit score info

Consumer reporting agencies TransUnion, Equifax and Experian all emphatically state that they do not provide credit scores for employment purposes.

Despite that, again, the Federal Reserve claims that credit scores are, indeed, used in employment.  Zillow and the San Francisco Chronicle believe it.

The first sentence of a Federal Reserve Bank of Cleveland commentary states, “Credit scores are used in nearly every part of our lives, from applications for car loans, mortgages, credit cards, and car insurance to even some hiring decisions.”


Dave Ramsey on employers and credit scores


The three national consumer reporting agencies all state that they do not provide credit scores for employment screening.

From: Greg Fisher
Sent: Tuesday, November 23, 2010 6:46 PM
To: Dave Ramsey
Subject: FW: credit score, employers, Dave Ramsey, Dave Says

You wrote, “I wouldn’t want to work for a company that puts more emphasis on my FICO score than on me as a person… there are so many ways to make a living in this world that there’s no reason to put up with being reduced to a number like that.”

Who is your source regarding credit score use by employers?

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

______________________________

From: Greg Fisher 
Sent: Sunday, November 28, 2010 12:04 AM
To: Dave Ramsey; Dave Ramsey
Subject: RE: credit score, employers, Dave Ramsey, Dave Says II

Please reply.

______________________________

From: Greg Fisher
Sent: Monday, November 29, 2010 10:22 PM
To: Dave Ramsey; Dave Ramsey; Dave Ramsey
Subject: RE: credit score, employers, Dave Ramsey, Dave Says III

Please reply.

______________________________

See

http://www.foxbusiness.com/personal-finance/2010/11/23/potential-employers-check-credit-score/

 http://www.cbn.com/finance/ramsey111610.aspx

http://www.thehawkeye.com/story/Dave-says-112110

http://www.thekansan.com/newsnow/x794473925/Advice-on-engagement-ring

http://www.decaturdaily.com/stories/A-ring-on-her-finger-doesnt-have-to-cost-an-arm,71508

http://www.independentmail.com/news/2010/nov/21/dave-says-guidelines-purchasing-engagement-ring/

http://www.sj-r.com/business/x1892561430/Dave-Ramsey-Personal-Finance

http://www.knoxnews.com/news/2010/nov/22/spend-one-months-salary-on-engagement-ring/?partner=RSS

credit score, employers, Huffington Post III

[previous message]

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, November 12, 2010 4:39 PM
To: Laura Bassett, reporter, The Huffington Post
Cc: Mario Ruiz, VP, media relations, Huffington Post
Subject: RE: credit score, employers, Huffington Post, identity II

 Please reply.

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

____________________

From: Laura Bassett, reporter, The Huffington Post
Sent: Friday, November 12, 2010 4:43 PM
To: greg@creditscoring.com
Subject: Re: credit score, employers, Huffington Post, identity II

www.amrail.net

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, November 12, 2010 8:49 PM
To: American Rail Marketing
Cc: Laura Bassett, reporter, The Huffington Post; Mario Ruiz, VP, media relations, Huffington Post; Chris Davis, Huffington Post
Subject: credit score, employers, Huffington Post

The Huffington Post reports: “After working for the same railroad for 14 years, never missing a house or car payment, Sammy Bailey says he never expected his credit score to keep him out of a job… Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.”

Do you use credit scores in employment screening?

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

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Saturday, November 13, 2010 12:06 AM
To: [name withheld], American Rail Marketing; American Rail Marketing (info@amrail.net)
Subject: RE: credit score, employers, Huffington Post

The last message, which was sent to the email address on your homepage, was returned as not able to be delivered.

Please reply.

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Saturday, November 20, 2010 10:18 AM
To: American Rail Marketing (info@amrail.net); [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing
Cc: Laura Bassett, reporter, The Huffington Post
Subject: RE: credit score, employers, Huffington Post III

The Huffington Post reports: “After working for the same railroad for 14 years, never missing a house or car payment, Sammy Bailey says he never expected his credit score to keep him out of a job… Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.”

Do you use credit scores in employment screening?

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

____________________

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Sunday, November 28, 2010 8:32 PM
To: Laura Bassett, reporter, The Huffington Post
Cc: American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; [name withheld], American Rail Marketing; Mario Ruiz, VP, media relations, Huffington Post; Chris Davis, Huffington Post
Subject: RE: credit score, employers, Huffington Post III

See “credit score, employers, Huffington Post III.”

Did you ask American Rail Marketing if they use credit scores in employment screening?  If you did, what was their response?

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

credit score, employers, Huffington Post, identity

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Thursday, November 11, 2010 8:25 AM
To: Laura Bassett, reporter, The Huffington Post
Subject: credit score, employers, Huffington Post, identity

See https://blog.creditscoring.com/?p=1480.

You wrote: “After working for the same railroad for 14 years, never missing a house or car payment, Sammy Bailey says he never expected his credit score to keep him out of a job… Bailey said he applied for a new job at Am-Rail in Kansas City, Missouri, three weeks ago but failed to pass the background check because of his poor credit.”

Seldom do stories about credit score use in employment mention employers’ names.  The consumer reporting agencies all state that they do not provide credit scores for employment screening.

What is the address, telephone number or website address of Am-Rail?

[next message]

Experian – Contradictory statements about credit scores and employers

Experian states, “More employers than ever are checking the credit scores of potential applicants, and that could create a vicious cycle, according to a report from the Minneapolis Examiner.”

The title and headline accompanying the statement is “More Employers Check Applicants’ Credit Scores.”

However, Experian claims that it does not provide credit scores for employment purposes.

credit score, employers, NPR, Life After Foreclosure: Coping With Bad Credit

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Tuesday, September 28, 2010 12:36 AM
To: Yuki Noguchi, correspondent, National Desk, NPR
Cc: All Things Considered, NPR; Alicia Shepard, ombudsman, NPR; Alicia Shepard, ombudsman, NPR; Anna Christopher, sr. manager, Media Relations, NPR; Danielle Deabler, sr. manager, Media Relations; Emerson Brown, publicist, Media Relations; NPR Corrections; On the Media, NPR, WNYC
Subject: credit score, employers, NPR, Life After Foreclosure: Coping With Bad Credit

Earlier today, you reported, “Some also say they worry that employers might use damaged credit scores against them in a job interview.”

However, consumer reporting agency Experian states: “Experian’s Employment Insight report includes similar information about loans and credit cards that is listed in the credit report. It does not include year of birth, spouse reference, account number or credit score, which are irrelevant to hiring decisions.”

Equifax, another agency, said, “We do not knowingly provide scores for pre employment screening.”

TransUnion, another agency, testified, “There’s no such thing as a credit score in employment.”

Perhaps some worry because the media keep repeating their worst fears.  Please break out of the echo chamber and address the above in your final report in the series.  Then, consider one about the echo chamber, itself.

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

credit score, employers, Los Angeles Times

[10/1/2010.  See update.]

 From: Greg Fisher
Sent: Saturday, September 25, 2010 8:17 AM
To: Robin Abcarian, national correspondent, Los Angeles Times
Cc: Deirdre Edgar, readers’ representative, Los Angeles Times
Subject: RE: credit score, employers, Los Angeles Times, presumptuousness

That is not why I am asking.  The question is this:  Where did you get that information? 

Further, if you can’t name a source for what you believed was a fact, then did you just make it up?  In other words, how did it happen?

The bigger question (not for you):  How did members of Congress, the Federal Reserve and the U.S. Department of the Treasury conclude that employers use credit scores, and what caused the nauseating media trend?

Citizens looking for jobs have enough to worry about, already.  They deserve an explanation. 

From: Abcarian, Robin
Sent: Saturday, September 25, 2010 1:13 AM
To: ‘greg@creditscoring.com’
Subject: Re: credit score, employers, Los Angeles Times

Ah…I see why you are asking: the credit score vs the credit report. I’ll look into running a correction.

From: Abcarian, Robin
Sent: Saturday, September 25, 2010 12:54 AM
To: ‘greg@creditscoring.com’
Subject: Re: credit score, employers, Los Angeles Times

It’s a fact that’s been reported on ad nauseum. 

From: Greg Fisher
To: Robin Abcarian, national correspondent, Los Angeles Times
Sent: Fri Sep 24 22:40:22 2010
Subject: credit score, employers, Los Angeles Times

You wrote, “That and his ruined credit score, which prospective employers often check.”

Who is your source regarding credit score use by employers?