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Released: March 05, 2013
Employer credit checks keep jobless out of workforce
Source: Blake Ellis, CNNMoney
One in four unemployed Americans have been required to go through a credit check when applying for a job, and one in ten have been denied jobs due to information in their credit report, according to a survey by liberal think-tank Demos of about 1,000 low- and middle-income households with credit card debt.
While people tend to think credit checks are only conducted for senior level positions, the study found they are often used for entry-level, low-paying positions as well -- even for jobs like delivery drivers and frozen yogurt servers.
To prevent credit checks from unfairly barring applicants from jobs, Demos recommended that the Consumer Financial Protection Bureau and other federal agencies require credit reporting agencies to remove medical debt from credit reports, as well as any disputed information until it is resolved. They also proposed making the process of disputing errors easier for consumers.
Read Full Article: Employer credit checks keep jobless out of workforce