Category: Employers

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

Kucinich, DFAS, ABC, employers and credit scores

According to the web site of Congressman Dennis Kucinich (D-OH), employees at a federal agency have been suspended due to low credit scores.

kucinich20101
Rep. Dennis Kucinich

A press release on kucinich.house.gov states, “The bipartisan group requested a suspension of a policy that has resulted in the unjust suspension of employees for reasons such as a low personal credit score until a full review can be conducted.”

The sub-headline is “Employees Suspended Indefinitely for Reasons such as Low Credit Scores.”

The release refers to a letter to the director of the Defense Finance and Accounting Service (DFAS) that was signed by Kucinich and three other Ohio members of the House of Representatives.  The letter uses the term “credit rating,” but does not contain the word score.

Consumer reporting agencies Equifax, TransUnion and Experian all state that they do not provide credit scores for employment screening.  A day before the Representatives’ letter, TransUnion submitted written testimony to the House Financial Services Committee stating: “We believe it is worth noting that credit scores are not used in connection with employment. TransUnion will not provide any score on a credit report that is obtained for employment purposes.”

A. Troy Marshall is the president of the American Federation of Government Employees (AFGE) – Local 3283.  Representative Marcia L. Fudge is a member of the House of Representatives from Ohio’s 11th district.  ABC news reports, “Marshall, however, argues that DFAS is making decisions based simply on the credit score” and “Like Fudge, Marshall says he’s not opposed to credit checks in principal, but says he believes the government should take an employees‘ performance and work history into account instead of relying just on a credit score.”

The Defense Office of Hearings and Appeals reviews cases regarding employees, contractors, security clearances and debts using the “whole-person analysis.”

Employers, scores and WBIR 10 News at Five

WBIR TV-10, Knoxville asks, “Did you know that many potential employers check your credit score?”

And, the people at the East Tennessee Gannett television station want you to tell them what you think.  Their website says, “Selected comments will air on Wednesday’s 10 News at Five.” 

Here is one comment that may or may not make it on the air:

GregFisher wrote:

Consumer reporting agency Equifax stated, “We do not knowingly provide scores for pre employment screening.”

Experian stated, “Experian’s business policy prevents the inclusion of credit scores with an employment report, at Experian called Employment Insight.”

And, in Oregon, a TransUnion official testified, “There’s no such thing as a credit score in employment.”

http://tinyurl.com/ylqv76y

Who is your source regarding credit score use by employers?

UPDATE, 3/3/2010, 10 pm

It didn’t make it.

What did make it was one that said, “A low credit score does not mean someone will not be a valuable or trustworthy employee.”

That’s another one to add to the video compilation.

Into the Audience – Credit scores and employers, CNM

The internet:  A place where almost anybody can write almost any nonsense. 

Here’s a good example.  CNM News Network’s piece on credit scores states, “Currently, employers can pull a job applicant’s credit report, but don’t have access to the actual score.”

However, the title is “Foreclosures and Job Hunting Don’t Mix as Employers Check Credit Scores.”

Watch as the publisher reacts to a comment on its page:

Your article says that employers don’t have access to credit scores, but your title screams that employers check them.

What gives?  Who told you that employers check credit scores?

Greg Fisher

Continue reading Into the Audience – Credit scores and employers, CNM

Cub reporters document employers saying they use credit scores

Recently, a Reuters blogger said that the CEO of credit score company FICO told him that employers use credit scores.

But despite FICO’s claim and the rest of the hoopla, only two employers have admitted it.

A Virginia television station obtained video footage of a credit union representative saying “Being a financial institution we have a set level its yes or no. If the credit score is below a certain number, then there’s nothing we can do about it.”

Virginia

In Texas, a television reporter interviews a bank senior vice president who said, “If someone is going to be handling your money and their credit score reflects irresponsibility with money— with their own money– then there may be some concern that they might be irresponsible with your funds, too.”

Reuters blogger: FICO says employers use credit scores

Fun feedback loop

Selling its score, FICO cheerfully says that employers use credit scores (occurs at :47 in the video).

Consumer reporting agencies claim that they do not sell credit scores to employers.

Ben Stein says that employers use credit scores.

Felix writes about Ben Stein.

creditscoring.com writes about Felix writing about Ben Stein.

creditscoring.com blog comments trackback to Felix’s blog (July 28 comment: “simmers“).

Felix writes that FICO told him that employers use credit scores.

creditscoring.com writes about Felix writing about FICO telling Felix that employers using credit scores (this page).

credit score, employers, KXRM-TV Fox 21, Colorado Springs

From: Greg Fisher [mailto:greg@creditscoring.com]
Sent: Friday, February 05, 2010 2:05 PM
To: spytlinski@kxrm.com
Subject: credit score, employers, KXRM-TV Fox 21, Colorado Springs

You wrote, “Your credit score can help or hurt you every time you apply for a loan, buy car insurance, Continue reading credit score, employers, KXRM-TV Fox 21, Colorado Springs

Experian’s sloppy work

Experian continues to sell credit scores saying that employers use them, while stating that employers do not use them.

They just don’t pay attention (too busy preening for the camera and creating bizarre advertisements).

While waiting for Experian to blink, see some other screw-ups by the British:

  1. “Credit scores represents your creditworthiness and indicate the likelihood that you will repay a debt as agreed.”
  2. “However, a credit scores are not stored as part of your credit history.”
  3. And, the best one: “Credit scores are based entirely on the information found on an individual’s credit scores.”

Let’s hope so.

Media depiction, credit score use, employers, CBS, Dallas

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

Despite that, the anchor at the CBS–owned television station in Dallas asks the financial expert and analyst to explain it all to us:

KTVT CBS 11, Dallas financial expert and analyst explains it all to us
KTVT CBS 11, Dallas financial expert and analyst explains it all to us

It is today’s #1 hit in Yahoo News for the term “credit score” (complete with a picture).  You can’t buy that kind of ranking.

From: Greg Fisher
Sent: Monday, August 17, 2009 1:27 PM
To: KTVT: Ginger Allen, interviewer; Lori Conrad, communications director; Steve Mauldin, president & general manager; news@cbs11tv.com; KTVTNewsEyeTeam@ktvt.com; cbs11@ktvt.com
Cc: Jim Lacamp
Subject: credit score, employers, CBS, CBS Television Stations, KTVT

You wrote, “In this economy, your credit score is more important than ever before, as prospective employers are looking at them to help in hiring decisions.”

Who is your source regarding credit score use by employers?

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