Detroit Metro Times: Should prospective employers be allowed to ask for your financial history?

[marmar]

Credit check
Should prospective employers be allowed to ask for your financial history?

By Molly Tippen


You are deep in debt, out of work and in desperate need of a job when a prospective employer asks a question you weren't expecting: "Can we look at your credit history?"

Many people in this predicament face a lose-lose situation, experts say. Deny permission and that prospective employer might think you are hiding something and automatically pass you over. Give them an OK and, when they see what a mess your finances are, there's a good chance you won't get the job anyway.

And even if your finances are sound, you may come away feeling your privacy has been invaded.

With an official unemployment rate near 10 percent nationally — 14 percent for Michigan and nearly 15 percent for metro Detroit — more people than ever are being affected. But, from the perspective of job applicants, it is largely an issue without a champion.

Proponents of the practice — including the companies that turn a profit selling your credit history — have deep pockets and lobbyists. But those looking for jobs are mostly on their own, with little recourse available.

.....(snip).....

Michigan House Bill 4528, sponsored by Rep. Jon Switalski (D-Warren), is an attempt to help the state's beleaguered job seekers. The bill seeks to prohibit the vast majority of employers from asking applicants for permission to check their credit. If the bill becomes law, employers who fail to adhere to it can be sued by those seeking work.

Only specified employers such as banks, credit unions, accounting firms and casinos would be exempt, allowing them to ask prospective employees for permission to review their credit histories.

Although Michigan's high unemployment rate means this is a particularly pressing issue here, it is a matter getting attention across the nation. .............(more)

The complete piece is at: http://www.metrotimes.com/news/story.asp?id=15118

[era veteran]

1. NO

[proudohioan]

2. K&R!!!!

I was turned down for a job that I was highly qualified for, due to "information obtained on your credit report", as the cold, impersonal rejection letter stated. It sounded more like being turned down for a credit card.

I felt like my privacy had been violated, and no one seeking a job should have to suffer any more humiliation than they are already experiencing.

[justanaverageguy]

3. Sometimes it's ok

When it's relevant to the job or security. For example, I worked at a bank and before they hired me they ran my credit report/financial history. I understood why, no bother. If I'm hiring someone for a position in which that person has to handle a lot of my money, I'd rather they weren't in dire financial straights. I would never hire an accountant to handle my finances who had a mountain of debt.

On the other hand, If I'm hiring you to hang drywall or something like that, then no.

[KharmaTrain]

4. I Never Give Out That Info...

When I used to go for interviews and was asked my "salary demands", I would always turn it around and ask "how much do you think this job is worth". Let them put the dollars out in front, don't volunteer to lowball yourself or now open yourself up to financial blackmail by an employer who can see how desperate you are for the job.

I also refused to give out a SSI number...if they want it, they have to hire me. Otherwise, there's no prospective employer who needs to know more than what's on the resume.