AJC blogger counters her U.S. Senator

Speech-making, writing, blogging, stating and yakking adds up to much mush

Last week, the U.S. Senate passed its financial reform bill with an amendment regarding credit score use in employment.  Senator Udall from Colorado sold the idea by saying that employers use credit scores.  The problem with that is that the consumer reporting agencies say that they don’t even provide credit scores for employment purposes.

Udall has not replied to a request asking for substantiation.

Two weeks ago, as an Atlanta Journal-Constitution blogger profiled the Equifax consumer reporting agency CEO, the writer dropped the E-Bomb, referring to a “paranoia.”  Sh’yeah!  A self-fulfilling prophecy in the making.

The blogger has not replied to a request for substantiation.

But, redemption for ATL came in the personage of another AJC blogger.  She quotes her senator, then contradicts his statement.  Rana Cash writes:

“I believe it’s only fair to allow consumers access to their credit score when it is used against them to deny credit, require a higher interest rate on a loan or prevent an applicant from being hired for a job,” said Sen. Johnny Isakson (R-Ga) in a statement. Employers often use credit reports, but do not have access to credit scores.

Ouch.  Ouch-O-Mondo-Matic!

The senator was asked by creditscoring.com to reply with substantiation.

Rag-tag army of dissenters

Cash is not alone.  John Ulzheimer, a New York Times blogger and no slouch in credit reporting and scoring said that there is “mountain of evidence that scores are generally not used by employers.”  He talks about the phenomenon on televison.  He had the last word on it– then had the last word on it.

Highly-intelligent and incisive Bankrate writer with exquisite taste in multimedia Leslie McFadden discovered the creditscoring.com video and wrote about the issue in “Credit score myth persists.”

In the Columbia Journalism Review, a reporter had an epiphany and, in a rare moment of leadership in the media, felt a sense of responsibility to his readers that caused him to– gasp– actually make a correction.

They are joined by ChoicePoint, the Privacy Rights ClearingHouse and CNN.

And finally, Lester Rosen, lawyer, author, speaker, expert witness and background screening company president– who knows a little about employment credit reports– keeps hammering away at the “urban myth.”

But, when you’re up against the Federal Reserve, with its access to congressional hearing rooms, it ain’t easy.

The Fed has not replied to a request for substantiation.

Average FICO credit score missing

Just when Wikipedia gets its act together, the average FICO credit score goes missing.

In the first story of Two and Two (a new section on creditscoring.com), questions are posed to FICO.  The median, the mean, the CEO, and an absent Experian all play their parts.

Things just don’t add up.  How is America supposed to know where it stands?  Is the average going up, or down?  What’s the big secret?

AJC, and credit score and job applications paranoia irony

Right in Equifax’s hometown, in an interview piece on chairman and CEO Richard F. “Rick” Smith, a writer for the Atlanta Journal-Constitution asks, “Is there too much paranoia about credit scores, which can affect everything from loan and job applications to insurance premiums?”

Apparently, he missed the story about Equifax/employers/scores, so the irony of the notion of paranoia is painfully accentuated.

‘Dude’s on vacation.

Experian: Employers use scores, but we don’t provide them to employers

Experian told John Ulzheimer what is not in employment reports.  One of those things is “Credit score (read that again please….credit score is not included).”

However, the consumer reporting agency still maintains, “Credit scoring helps potential lenders, landlords, and employers quickly gauge an applicant’s credit history.”

Experian chairman John Peace got some of it right before his big announcement in July, but he has other things to do, now.

Enough to be Dangerous: CreditCards.com

Recently, Experian (“the leading global information services company”*) announced that it and CreditCards.com “will co-host a live, interactive, online town-hall discussion of credit reporting and scoring.”  CreditCards.com made the same announcement, replete with countdown clock to the exciting event.

Experian’s newfound public outreach/reach-out for goodwill follows the drubbing it took at the hands of Congress and the FTC regarding the FreeCreditReport.com debacle.  Among other adventures, Chairman John Peace and Experian have traveled the the viral video route recently.  There’s a fab, telegenic, “STYLISH, SMART, & SASSY” (click “HOSTING REEL” for a demo if you’re interested), newly-minted credit history expert and a bevy of B-list stars.  It’s all packaged up with cutesy, sprightly and playful plucking strings to indicate when it is time to laugh (and you will need it), similar to scenes on Wisteria Lane and at Seattle Grace.

If you think that you can manage all that (and would want to), Experian is still looking for you.

CreditCards.com knows Enough to be Dangerous.  They would have you believe that credit score factors include “employment, income” (FICO scores do not consider income and employment), and even “debt to income ratio.”  And, speaking of experts and employment, the consumer reporting agencies do not provide credit scores for employment purposes.  But today, while a battle rages in statehouses from coast-to-coast, one of the CreditCards.com’s “experts” wrote that employers use credit scores.  It wouldn’t be the first time that that happened.  And, they are in good company.

Take what these two tell you with a grain of salt.  And if you participate in their forum, be sure to ask about your AWOL Experian FICO score, and what they are talking about with the line:  “Credit scoring helps potential lenders, landlords, and employers quickly gauge an applicant’s credit history.”

 

 

*as opposed to Equifax, “A global leader in information solutions” (and, indeed, “Leading with Integrity“), or TransUnion, “a global leader in credit and information management.”

Good Morning America says credit score key to job

Last week on ABC’s “Good Morning America,” host George Stephanopoulos introduced a segment by saying, “You know, your credit score is the key to getting a credit card, a mortgage– even a good job.”  The accompanying web page says, “Credit scores can affect many aspects of your life, your ability to get a credit card, a mortgage and even a job.”

The interviewee, Mellody Hobson (who ABC calls an expert and Guru), did not disagree.  Previously, Hobson said that the average credit score is 676 when the median FICO score was known to be 723 (click on “yuk it up“).

Meanwhile, the consumer reporting agencies all state that they do not provide credit scores (wacky video) for employment, an actual verifiable fact that ABC failed to report.

Laura Zaccaro, whose name appears as the co-author of the web page said that her sources include Tory Johnson and FICO.  In 2008 FICO referred to “anecdotal information gleaned from public sources such as published articles.”

Last month, the Federal Reserve told Congress that employers use credit scores.

Enough to be Dangerous: U.S. Bank and PrivacyGuard

To: Steve Dale, senior vice president, Media Relations, U.S. Bank
From: Greg Fisher
Date: April 29, 2010
Subject: Fake-O FICO Funk, U.S. Bank

You state, “Get your credit report and FICO score online now, plus have your report monitored for signs of identity theft.”

However, the credit score that I received by using your link was not a FICO score.

What are you doing to correct your sales pitch? What about refunds?

See Enough to be Dangerous.

Greg Fisher
PO Box 342
Dayton, Ohio 45409-0342

Credit dude on hiring and credit scores, Des Moines Register

To:  Matt
From:  Greg Fisher, creditscoring.com
Date:  April 29, 2010
Subject:  credit score, employers, Des Moines Register

You said: “Know your credit score. Many employers today take your credit score into consideration when determining if you are the right person for the job.”  However, the consumer reporting agencies do not provide credit scores for employment screening.

You are at the top of the news searches this morning.  The story about people saying employers use credit scores is getting boring.  But, identifying who provided that information:  Now that’s interesting.

Who is your source regarding credit score use by employers?

Request for Federal Reserve’s evidence regarding employers using credit scores

From:  Greg Fisher
To:  Sandra F. Braunstein, Federal Reserve
Subject:  credit score, employers, Federal Reserve, 2010-03-24
cc:  Michelle A. Smith, Federal Reserve; ConsumerHelp@FederalReserve.gov; Pierce Nelson, Sibyl Slade, Jean Tate, Federal Reserve, Atlanta; Federal Trade Commission Office of Public Affairs; Gerri Willis, CNN; realstories@cnnmoney.com; letters@smartmoney.com; Aleksandra Todorova, Stephanie Auwerter, SmartMoney; Elizabeth Warren; freshair@whyy.org; talkback@whyy.org; frontline@pbs.org; Gosia Wozniacka, The Oregonian; Jennifer Openshaw; PublicAffairs@dobi.state.nj.us; consumerfinance@dobi.state.nj.us; John Peace, Don Robert, Susan Henson, Susan Thomas, Media Relations, Corporate Responsibility, Experian; press.office@uk.experian.com; worldservice@bbc.co.uk; editor@mediaguardian.co.uk; haveyoursay@bbc.co.uk; gazette@independent.co.uk; online.editor@timesonline.co.uk; news@timesonline.co.uk; business@timesonline.co.uk; Barry Paperno, Craig Watts, FICO
Sent:  4/19/2010

See http://www.creditscoring.com/influence/government/federalreserve/employers2009atlanta.html and https://blog.creditscoring.com/?p=1154.

Last month, you stated to congress:  “Credit scoring is widely used to evaluate applications for credit, identify prospective borrowers, and manage and price new and existing credit accounts. It is also used to facilitate decisionmaking in other areas including insurance, housing, and employment.”

However, consumer reporting agencies who compile and maintain files on consumers on a nationwide basis state that they do not use credit scores for employment purposes.

What evidence suggests that employers use credit scores? 

How many employers use credit scores? 

Do you have the identity of one employer who uses credit scores?

Greg Fisher
The Credit Scoring Site
greg@creditscoring.com
creditscoring.com
PO Box 342
Dayton, Ohio   45409-0342
937-681-3224