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.

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

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.

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]

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.”