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View Diary: Credit checks cause one in 10 unemployed people to be denied a job (136 comments)

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  •  This is the naive response (43+ / 0-)

    Your comment is in two parts, and thus shall my response be.

    Part the first, regarding drivers:

    Fine. If you are hiring a person to drive, send the employee's name to your insurance company, and ask them if they can insure that person. If they can't, then they cannot be hired. You pre-screening them based on what you think your insurance company might want to see (which is never, insofar as I am aware, actually spelled out exactly) is both unfair and unwise.

    Part the second, regarding monetary responsibility:

    There is real science on this, are you aware? I understand that the gut reaction of employers is to assume that credit reports are indicative of honesty, integrity, and so forth, because it just seems like it ought to be true. And thus employers really aren't setting out to be complete bastards and deny people jobs just because they have been unlucky in the past. They think that they're being responsible.

    But it turns out that people actually do study this stuff for a living, and over and over they have found literally no correlation between employees' credit scores and their tendency to be fired or disciplined for fiscal malfeasance (or other kinds of bad behavior.)

    And so, since there is actually no link at all between those things, when you look at credit scores in hiring decisions, what you are really doing is denying people jobs because they have been unlucky in the past, for no other reason than that you do not know what you're doing. (Of course, it doesn't help that most MBA programs don't seem interested in correcting this misapprehension, maybe because they believe it much more important that their graduates appear to be responsible employers than that they actually be responsible employers.)

    And, to be honest, the fact that people are doing something discriminatory and offensive because they believe that this discrimination is warranted, when it has been proven not to be over and over, is at some point no longer a defense, just as not hiring black people because of their skin color is offensive even if you think that being black does make you more likely to steal stuff.

    •  Great comment adamlang! (22+ / 0-)

       There's this terrible mentality in our Nation, particularly among conservatives that "losers" should be punished as often as possible, and "winners" should be rewarded.
         This is just another way to push people further down when they are trying to get on their feet.

      "We the People of the United States...." -U.S. Constitution

      by elwior on Tue Mar 05, 2013 at 12:54:50 PM PST

      [ Parent ]

    •  One of the biggest "blemishes" on a credit report (21+ / 0-)

      for an individual is a bankruptcy. It stays there for 10 years and carries a stigma mainly perpetuated by those who have never themselves fallen on hard times. On the other hand, corporations can use those same protections afforded by bankruptcy to reorganize for competitive advantage, perform massive layoffs, and raid pension funds. If corporations are people (my friend) they are most certainly not held to the same moral standards as individuals if based solely on credit worthiness. In fact, they are often rewarded for the same behavior that would almost certainly keep me from getting a new job.

      I wish I had a way to truly drop out of this stinking rat-race but I have a family that depends on me.


      by rightiswrong on Tue Mar 05, 2013 at 01:11:30 PM PST

      [ Parent ]

    •  Ignoring the fact that this is how businesses... (0+ / 0-)

      ...and insurance companies work to control and shift risk only contributes to the problem. The fact that they have made it legal doesn't mean that it is right or fair.

      Being naive is pretending that this isn't true.

      Implying that I am personally doing something discriminatory or illegal by pointing out the things that I did in my comment is offensive.

      "When people show you who they really are, believe them." - Maya Angelou

      by Pennsylvanian on Tue Mar 05, 2013 at 01:24:40 PM PST

      [ Parent ]

      •  It's offensive to you because it's right. (1+ / 0-)
        Recommended by:

        The comment did not imply that you're

        doing something discriminatory or illegal by pointing out the things
        that you think to be true.
        •  I see that you don't like what I said. (1+ / 0-)
          Recommended by:

          Yet there don't seem to be any substantive responses to the reality that this is how business is being used to manipulate behavior of vulnerable populations, in this case job seekers. Try to make me into some kind of unethical boogeyman, but it doesn't recognize the real problems behind WHY companies are using credit to evaluate people for employment. It's just sniping now.

          "When people show you who they really are, believe them." - Maya Angelou

          by Pennsylvanian on Tue Mar 05, 2013 at 02:23:06 PM PST

          [ Parent ]

    •  Drivers. I had a moving company. Drivers (5+ / 0-)
      Recommended by:
      DWG, elwior, Cassandra Waites, LinSea, entrelac

      knew that their employment was dependent upon having a valid, appropriately classed license and being insurable. When either of those conditions became inoperable, they lost their job.

      Simple. Honest.

      These corporate invasions of privacy are completely misguided and offensive.

      People who approve of them are naive or nefarious.

      Companies also accessed medical records for "decision-making" before HIPA.

      When 1% take 121% of the gains from "recovery", people actually recovering from lost employment are trading down on wages and benefits. Current strategies by moderates don't even consider winning the Class War.

      by Words In Action on Tue Mar 05, 2013 at 03:19:48 PM PST

      [ Parent ]

    •  please send this to Top Comments (3+ / 0-)
      Recommended by:
      elwior, BeninSC, Larsstephens

      I can't get DK4 to play nice with my browser.


      The "extreme wing" of the Democratic Party is the wing that is hell-bent on protecting the banks and credit card companies. ~ Kos

      by ozsea1 on Tue Mar 05, 2013 at 03:41:30 PM PST

      [ Parent ]

    •  It sucks that I just found this (1+ / 0-)
      Recommended by:

      comment now so I can't rec it, but I agree 100%.

      I understand the reasoning behind keeping some allowances for credit checks factoring into employment intact, but ultimately I disagree with it.

      If it were up to me, there would be an outright ban on all of it. I don't care if the job opening is for lots of money.

      If employers complain that it makes it too hard to evaluate a prospective employee's character, too bad. Find another way to do it.

      My financial information is mine and it's none of your damn business. Period. End of story.

      liberal bias = failure to validate or sufficiently flatter the conservative narrative on any given subject

      by RockyMtnLib on Fri Mar 08, 2013 at 08:37:46 PM PST

      [ Parent ]

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