Job seekers with poor credit know all too well how negative items on their credit report can put them at a disadvantage when seeking employment, since companies often check an applicant’s credit report before offering employment. This “credit report as a condition of employment” cycle creates a vicious circle where a person having credit difficulties because they are out of work can’t find a job because of the credit problems, which are the result of being out of work.
If you find yourself in this situation, help may be on the way. Recognizing that an applicant’s credit report does not predict job performance, the Washington D.C. City Council passed the Fair Credit in Employment Act (FCEA) strictly limiting an employer’s right to inquire in the credit histories of employees and job applicants. Under the Act, companies are only permitted to review an applicant’s credit report if they are applying for certain types of jobs, like those in law enforcement, the financial industry, and positions requiring security clearance.
This common sense law strikes a balance between jobs where review of an applicant’s credit history addresses a legitimate concern, like jobs involving the public trust and the financial information of others, and the vast majority of position where an applicant’s credit history is meaningless. While the FCEA only protects job seekers in Washington D.C., it is a step in the right direction.
If your credit history is getting in the way of employment opportunities, check your credit report. It may not be your credit that’s holding you back, but rather inaccurate or outdated information on your credit report which falsely diminishes your credit. If you find an error on your credit report, call or email Attorney Gary Nitzkin at (855) 956-2089 for a free, no obligation consultation. We specialize in fixing credit reporting errors, and can help you take action to clean up your credit report. The call is free and the advice is priceless.
A human resource recruitment officer reading the file and resume of a job applicant in a job interview.
