Cahill seeks law to ban firms from checking job seekers’ credit

[Recursion]

Source: Boston.com

Treasurer Timothy P. Cahill, the independent candidate for governor, said yesterday he wants to create a law that would bar employers from using credit checks to screen job applicants.

Cahill conceded that it’s probably too late to pass such a law this year, with the legislative session set to end Saturday, but said he would like to make the change next year to help people get back in the workforce. “Prospective employers are looking at their credit history and using it as a job qualifier or job disqualifier,’’ he said at a news conference on the steps of the State House. “And we think that’s wrong.’’ Cahill said that with unemployment “a major issue’’ for middle-class residents, the legislation would increase the hiring prospects for people with past credit problems.

He cited figures from the Society for Human Resource Management showing that 60 percent of employers run credit checks, up from 40 percent in 2006.

Read more: http://www.boston.com/business/articles/2010/07/28/cahill_seeks_law_to_ban_firms_from_checking_job_seekers_credit/

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NB this is a state bill, MA-only. But it's something I wish would get more national attention.

Cahill was a Democrat with a lot of political connections who is now running as an I because he and the governor (Deval Patrick) can't seem to work together (does this sound familiar to DUer's from Florida?). So now it's a 3-way race for Governor among Deval Patrick (D), Cahill (I), and Baker (R). Cahill supports a flat income tax.

Baker ran a huge health insurance company for a long time, but the level of corruption in the D-controlled state house is so high at this point that his "have you had enough yet?" campaign is getting some traction, and Cahill is tapping off a lot of voters who normally vote Democratic.

Why isn't an actual Democrat working for stuff like this?

[DirkGently]

1. Good. Being broke doesn't disqualify you from a job.

[droidamus2]

3. Never made sense

To me checking credit rating should have the reverse effect it does when employers use it. If I am heavily in debt then I really need the job and I am going to work hard to make sure I don't lose the job once I have it (barring places like banks as somebody else stated). On the other hand if I have no debt or am up to date on all my payments then job hopping is an option for me.

[DirkGently]

4. The whole notion of debt is screwed in this country

Borrow nothing and have no debt, and you have no credit. Borrow a lot and have trouble paying it back, and you're shiftless. Borrow a lot, pay a lot of interest, and you're *golden.* (pat pat).

[Iowa]

5. Yep...

"Borrow nothing and have no debt, and you have no credit..."

This happened to me. I dropped off the radar and didn't know it until a store clerk offered to take $50 off the price of a coat if I'd sign up for a card. I figured, "What the hell - for 50 bucks I'll do it". I had had zero debt for maybe 6 or 7 years - no mortgage, paid cash for cars, etc. My credit app was rejected on the spot. I couldn't believe it.

So I explained the situation to my local credit union and asked for a credit card. They knew me, so they gave me a no-fee credit card (which I pay off in full every month), and I was back on the radar. That was 10 years ago.

Actually, the only reason I give a shit is because the insurance companies zing me on my car insurance rates unless my credit rating is decent. So they have you coming or going. It should be illegal.

[cascadiance]

2. A law like this just went in to effect here in Oregon this month...

that bars credit checking on job applicants, except in jobs where appropriate (certain bank jobs, etc.). Perhaps Massachusetts looked at Oregon's law as a model?