Use growing of credit reports in hiring decisions

May 12, 2012 /24-7PressRelease / -use of credit reports in hiring of more and more decisions

There is a growing trend among employers across the country to use the reports to screen job seekers. While the practice is largely illegal in Maryland, the phenomenon is worrying in view of the considerable difficulties already to a large number of jobseekers of today.

More than ever, according to USA Today, recruiters say employers are using credit reports to screen potential employees. While small business owners can approve the strategy, people who are their work and down on their luck does not only consider policy favorably.

A group that represents the interests of small businesses, the National Federation of independent business, believes that employers should have all the tools at their disposal to take decisions to hire and credit reports to provide objective information on the latest decisions of potential employees. However, some legislators of State examines the issue and many job seekers do not share.

Critics of the policy say about credit reports provide no information explaining why a person makes a late payment, choose to not pay an invoice or entered bankruptcy. In many cases, bad credit is the result of unexpected events in life, as a medical debt or the loss of a job. In addition, those against the policy support credit reports are expected to be used by lenders to determine whether a person is sufficiently creditworthy to receive a loan - not by the employer, questioned if an applicant is solvent enough to be offered a job. As a legislator of State in a USA Today article that reviewed the question, "if [reports] provide an indication of the professional skills of the employee, which would be a different discussion."

Federal law addresses the issue in federal Fair Credit Reporting Act. The Act requires employers to obtain the permission of candidates before that credit reports are studied. However, a potential employee who refuses to leave can find its application set to the side. Thus, some States also discussed the use of credit reports for the purpose of application of work. Maryland is one of the seven States that prohibit the use of credit in hiring decisions scores; However, there is an exception for jobs requiring manipulation of large amounts of money.

Legislators want to strike a balance between the concerns of the owners of businesses with job-seekers, but some legislators believe that without protection sufficient credit long term unemployed persons poor face. Without a source of income, it is difficult to improve a credit score.

If you have debt problems, contact a lawyer experienced bankruptcy today to discuss your legal options.

Article provided by Law Offices of David i. Steinberg
Visit us at the http://www.dsteinlaw.com

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