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Released: March 02, 2010

States may ban credit checks on job applicants

Source: Associated Press (USA Today)

It’s hard enough to find a job in this economy, and now some people are facing another hurdle: Potential employers are holding their credit histories against them. Sixty percent of employers recently surveyed by the Society for Human Resources Management said they run credit checks on at least some job applicants, compared with 42% in a somewhat similar survey in 2006.

Employers say such checks give them valuable information about an applicant’s honesty and sense of responsibility. But lawmakers in at least 16 states from South Carolina to Oregon have proposed outlawing most checks, saying the practice traps people in debt because their past financial problems prevent them from finding work.

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