HR 3149 Threatens to Ban Credit Reports (7/10/2009)


The US House of Representatives has introduced HR 3149 which seeks to amend the Fair Credit Reporting Act to prohibit the use of consumer credit checks against prospective and current employees for the purposes of making adverse employment decisions.

Bills such as these have been introduced at the state level across the country and in all cases failed (see links below). It is our sincere hope that the same fate meets this bill.

California Governor Arnold Schwarzenegger vetoed a similar bill in his state using the following rationale, “This bill would significantly increase businesses’ exposure to civil actions over the use of credit checks. Further, the bill would increase administrative costs to those employers who must legitimately use credit reports as a screening tool by requiring that the employer first abide by its onerous requirements. California employers and businesses have inherent needs to obtain information about applicants for employment. The bill would become a new employer obstacle to the use of available information needed to make hiring decisions.”

We are certain the National Association of Professional Background Screeners (NAPBS), as well as a host of other business advocacy groups will be speaking out on this issue in short order. We’ll pass along ways to get involved as soon as we know more.

Read HR 3149

Related Links
Connecticut House Bill 5521 Threatens Use of Credit Checks Update: California Bill to Limit Credit Reports Vetoed
California Employers Beware: Right to Review Credit Reports Threatened
Credit Reports: A Window to the Soul?

  • Pass Now

    I was laid off and lost everything including my house. The dirty whores at JP Morgan Chase told me that they were going to drag the short sale out for as long as possible so as to destroy my credit and ruin my life, and they did. I have been turned down for two jobs because of my credit. I had to sell my car to buy food. If I had the money I would buy a gun and blow my brains out. Thanks for nothing Obama.

  • Diana

    Are you kidding me? Job applicants don’t need yet another thing to worry about when applying for a job. The use of credit scores as a screening tool should be banned. Do credit scores tell a potential employer how well an applicant is going to perform on the job? Do employers give applicants a chance to defend themselves if something negative pops up on their credit score or background check? I seriously doubt it. No, credit scores should never be used as a screening tool for it is unfair and gives no chance for the applicant to defend themselves because the employer will not let the applicant know the reason they were passed over even if it is required by law. Employers will just take the easy way out. Let’s see how employers would like being judged based on a score that was inaccurate and didn’t tell the whole story.