Tips
from June 25, 2009
The Small Business tips today will be discussing the Fair Credit Reporting Act
(FCRA).
-
Employers generally ask a credit reporting company for credit, employment history, motor vehicle
records, criminal background, and references which must comply
with the FCRA requirements.
- Under the FCRA, a credit
reporting company will not provide an employee’s credit report to an
employer without proper written consent.
- As an employer, if you decide
to not hire or promote an employee based on their credit report, you must
provide a copy of the report and let the employee know the right to
challenge the report.
- FCRA
also requires businesses to report accurate information regarding debts
owed to a credit reporting company by a debtor to avoid costly fines.
Daily
Overview: The FCRA protects credit reports of employees. For more information, go to the Fair Credit Reporting Act.
I
am not an attorney. I have attempted to condense complicated and
detailed legal issues into 140 characters per line. My interpretation may not
be exact. Please contact an attorney for professional legal advice.
For
more information, please visit the American Bar Association.
Here at ABC we post these small business tips to our employee's Twitter
account each day, Monday through Friday. This is a reposting of those tips.
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Friday, June 26, 2009 at 1:34 PM
Cheryl says:
Personal finances are nobody’s business but your own. Unfortunately with employment, it becomes somebody’s business. This leads to the issue of trust. When looking at personal finances, you can tell if a potential employee has a record of making smart decisions rather than poor ones. Employers want to hire people who they know they can trust making important decisions within their company. You have to trust the information that you get from companies regarding their financial status is true and take it as it is. On the other hand, that same company can turn on you and pry at your personal financial information. Although it would seem that personal life and work life are completely separate, especially regarding financial information, that is not always the case.
Saturday, June 27, 2009 at 10:19 AM
Jerry Robertson says:
In this day of age, I understand the need of background checks especially criminal. However, for most jobs, I think a credt check is an invasion of privacy and not an accurate indicator who would do a good job or would be tempted to steal. In fact, many of the people I caught stealing had good - great credit. The person with good credit has a lot to lose, while if your credit is poor, you cannot hurt it much more. Besides, if the credit lobbyists were smart, they would get credit checks banned from most jobs, because someone with poor credit can improve their financial status and even pay back past debts.
