Category: Federal Reserve

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.”


employers and credit scores, Kirwan Institute

From: Greg Fisher
Sent: Monday, March 29, 2010 1:41 PM
To: Jessica Leveen Farr
Subject: credit score, employers, Kirwan Institute

Recently, you wrote, “Landlords may evaluate an individual’s credit prior to renting a home and some employers access credit scores for all new hires.” 

Your footnote cites the document, “The Impacts of Foreclosures on Families and Communities: A Primer,” by G. Thomas Kingsley, Robin E. Smith, and David Price. 

The only mention of credit scores in that document is in an endnote, referring to the document, “Credit Scores, Reports, and Getting Ahead in America,” by Matt Fellowes.

That document refers to a survey:  “A 2004 survey of companies by the Society for Human Resource Management, for instance, found that 35 percent of companies used credit reports for this purpose, up from 19 percent in 1996.”

In April, regarding its 2004 “Reference and Background Checking Survey,” the SHRM replied, “Neither survey discusses credit scores, only credit checks.”

What indicates that employers use credit scores?

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

From: Hughes, Jennifer [SHRM]
Sent: Thursday, April 09, 2009 5:04 PM
To: creditscoring.com
Subject: RE: credit score, employers III

Hi Greg,

Neither survey discusses credit scores, only credit checks.

[full correspondence with SHRM]

Employer hiring decisions, credit scores, and the Federal Reserve III

See the previous email to the Federal Reserve.

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
From: “creditscoring.com” <greg@creditscoring.com>
Subject: Re: credit score, employers III
Cc:
D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta;
Webmaster, Federal Reserve Bank of Atlanta;
Jean Tate, media relations liason, Federal Reserve Bank of Atlanta;
Federal Reserve Consumer Help; 
Dennis P. Lockhart, president and chief executive officer, Federal Reserve Bank of Atlanta;
D. Scott Davis, chairman, Federal Reserve Bank of Atlanta (via email address of Debbie Curtis-Magley, UPS;
Patrick K. Barron, first vice president and chief operating officer, Federal Reserve Bank of Atlanta;
Carol B. Tomé, deputy chairman, Federal Reserve Bank of Atlanta;
Date:  2/26/09

Please reply.

At 12:22 PM 2/17/2009, creditscoring.com wrote:

Please reply.

At 12:34 PM 2/12/2009, creditscoring.com wrote:

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

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

 [Update, 4/18/10:  http://creditscoring.com/influence/… atlanta.html]

Employer hiring decisions, credit scores, and the Federal Reserve II

See the previous email to the Federal Reserve.

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
Subject: Re: credit score, employers II
Cc: D. Pierce Nelson, public information officer, Public Affairs Department, Federal Reserve Bank of Atlanta
Date:  2/17/09

Please reply.

At 12:34 PM 2/12/2009, creditscoring.com wrote:

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

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

Employer hiring decisions, credit scores, and the Federal Reserve

The Federal Reserve Bank of Atlanta periodical publication “Partners in Community and Economic Development” (Vol. 18, No. 2, 2008) contains an article titled “New FICO Model Changes Approaches to Consumer Credit.”

Here is the initial email to the U.S. central bank:

 

To: Partners in Economic and Community Dvelopment, Federal Reserve Bank of Atlanta; Sibyl Slade, regional community development manager, Federal Reserve Bank of Atlanta
Subject: credit score, employers
Date:  2/12/09

You wrote, “The lack of a solid credit score typically influences the cost of credit, vehicle insurance rates, utility deposits and employer hiring decisions.”

See http://creditscoring.com/influence/government/employercreditscorebelievers.html .

Who is your source regarding credit score use by employers?

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

 See the next email to the Federal Reserve.