A Case for Credit Reports and Background Checks
March 24, 2010
Michigan governor Jennifer Granholm has ordered that all applicants for state tax breaks be subject to criminal and credit background checks after the state approved a $9.1 million abatement to a convicted embezzler. Lest we forget the drum beat of lawmakers throughout the country attempting to ban the use of employment credit reports. Here’s an example where a credit report would have prevented an embarrassing and costly situation for the state.
I understand that this was not an employee/employer situation, but it easily could have been. Before we all rush to ban this practice, it is important to understand the potential ramifications for businesses, government and individuals.