Empoyers Who Request Credit Reports!!!

Moho · Jan 1, 2004

:idea: Here's an idea. Ask to see their credit report. I can probably guess your answer would be NO! I have never heard of such nonsence and I would seek higher authorities and get some or all of that law changed. I know that in our state a person is highly protected when it comes to their personal issues. You have to be very careful when doing interviews, causual talk can be concidered violating their privacy??????

Moho:confused:

Sheri257 · Jan 1, 2004

Originally posted by Moho
Here's an idea. Ask to see their credit report. I can probably guess your answer would be NO! I have never heard of such nonsence and I would seek higher authorities and get some or all of that law changed. I know that in our state a person is highly protected when it comes to their personal issues. You have to be very careful when doing interviews, causual talk can be concidered violating their privacy??????
Moho:confused:

The credit checks are done with the applicant's signed approval. That's how it's "legal." If the applicant doesn't sign the authorization, many employers simply eliminate the application from consideration.

Whatever the case may be, I have found a TON of applications which require credit checks, from hospitals all over the country. It doesn't look like this is going away anytime soon. :uhoh3:

Tweety, BSN, RN · Jan 1, 2004

Originally posted by lizz
Bad credit won't necessarily scar you for life. Most items are removed after seven years, so the only people who are "scarred for life," so to speak, are those who still don't pay bills.

And don't forget why credit scores exist. It's a way to measure different degrees of "bad credit." Credit scores can range from 900 to 375, with the average falling between 620 and 650. So if you're applying for a job, that may be the average you are competing with, so to speak.

There's probably a big difference between somone who has a 600, and someone who has a 400. Just as there's probably a big difference between someone who's paid all of their bills in the last two years, and someone who hasn't --- even though both have "bad credit."

I still think the problem goes back to employers not giving detailed references on past employment. From what I've read, this is why prospective employers rely more on credit these days. In many cases, they simply don't have access to adequate information on past employment.

Good post. I didn't realize things were dropped after seven years, as I've seen stuff on my report from way back (all good thank goodness). I think over time though, as one tries to make good on debts and pays things off it balances out?

I agree with the last paragraph that probably is the reason they do them. I do think still there are good people that have bad credit. But a credit report does seem to be one way to get information about a prospective employee. I would say someone whose credit report has 20 credit cards and many thousands of dollars deep in debt wouldn't necessary be someone I would hire, you're right it does say a lot about the person.

BarbPick · Jan 1, 2004

Police Departments do credit checks

LilRedRN1973 · Jan 1, 2004

If people screw their creditors, it's nothing more than a glorified version of stealing. Somebody lends you money in good faith, you decide to keep the money and not pay it back. (And we all know that a lot of people, including myself, have done this.) Is that honest or responsible? Hell no! But here comes all of the collective whining when an employer decides to check your credit to see make sure you're an honest, responsible individual. You've ripped off your creditors! If you have really bad credit, then you've probably screwed a lot of creditors out of a lot of money. How would you feel if it was your money that was gone?And why should anyone, including an employer, trust you? If you've screwed your creditors, who's to say you won't screw your employer? Then you yell and scream because you can't get away with it, and a prospective employer is holding you accountable for your actions. Will somebody, just for once, take responsibility for their own actions, rather than blame the entire universe for problems that they caused in the first place? Judging from this thread, I guess not.

I don't consider what I did "screwing my creditors". The entire reason I filed bankruptcy was because the hospitals I was paying off decided they weren't getting enough per month so they turned it over to collections. The collection agency in turn decided that the monthly payment I could afford was not enough and went into my bank account and took every cent I had. I was unable to pay rent that month and several other bills. And I was told that they would continue seizing my funds until the debt was satisfied. I wrestled for almost a month, trying to decide what to do.

I did NOT charge up outrageous balances on my credit cards and then decide I wasn't going to pay. I have had a credit card since I was 16 and have always been careful with my credit. But unfortunately, I could not afford health insurance and a few incidents put me in the hospital, which racked up almost $20,000 in medical bills. I tried in good faith to work with the hospitals and pay them monthly on my debt. One particular hospital decided they wanted more of a payment. I was unable to pay them more as I was already paying 2 different ambulance services, one other hospital, and two specialists that I had to go to after my stay in the hospital. They didn't care and turned my account over to collections. That collection agency actually sent my check BACK to me one month with a letter attached to inform me that it was not sufficient payment per our agreement (I never agreed to any set monthly amount).

Shortly after that, I received a letter in the mail to inform me of insufficient funds on my rent check. When I went into the bank, I was told that although my account had money in it, those funds were frozen and unavailable to me. They explained that an officer had been in to serve them with paperwork, allowing this collection agency to seize all my funds, as well as any funds I continued to deposit into that account until my debt was satisfied. After being advised by a lawyer, I thought long and hard about what I was going to do. I ended up filing bankruptcy and just to let you know that I didn't intentionally "screw my creditors", I actually left off several credit card companies from my bankruptcy and continued to pay them after my bankruptcy was completed. I felt terrible about doing what I did, but I had no choice, in my opinion.

I do not think my character is any lower than someone who has a FICO score of over 700. I have been working hard for the past 2 years to improve my FICO score after my bankruptcy and am proud to say it's over 600. But, it still has prevented me from obtaining employment twice in the past 2 years. And that does get me angry. I'm an excellent employee who works her tail off for whatever employer she works for. But all they do is look at my credit and say "oh, you've had a bankruptcy...you are automatically disqualified for the position".

Please don't throw everyone who might have less than perfect credit into the same group. I hate being judged by my credit report and it embarrasses me to say I filed bankruptcy. But at least I know my reasons for doing so and it about the only choice I had. I now am smart enough to FIND the money to pay for health insurance!!!

LilRedRN1973 · Jan 1, 2004

Police Departments do credit checks

LOL...I know...that was one of the jobs I was turned down for, even after completing the physcial and interview with flying colors. The police chief said he would have happy to have me as part of the team and sent me off to do my fingerprinting and paperwork. After several hours there, we got to the financial record part and I was asked if I had a bankruptcy. After telling them yes, several years ago, I was told I was automatically disqualified. Now, why oh why, didn't they tell me this before I busted my rear doing all the running, push-ups, sit-ups, etc. and enduring an hour long inquisition in the interview room?? :chuckle But, as another thread on this board says, everything happens for a reason. Had I been hired on with that police department, I would not be here, on my way to an R.N.!!

p.s. Barb, I will more than likely email you sometime tonight about the tele thing!

Sheri257 · Jan 2, 2004

Originally posted by RNnTraining1973
Please don't throw everyone who might have less than perfect credit into the same group. I hate being judged by my credit report and it embarrasses me to say I filed bankruptcy. But at least I know my reasons for doing so and it about the only choice I had. I now am smart enough to FIND the money to pay for health insurance!!!

Of course there are exceptions, and I said that several times in other posts, but perhaps this point was missed in the heat of the debate. My larger point wasn't directed toward any particular individual, but to call attention to the fact that many people do not pay bills and do abuse their credit, and that's a big part of the problem.

I don't consider what I did "screwing my creditors". The entire reason I filed bankruptcy was because the hospitals I was paying off decided they weren't getting enough per month so they turned it over to collections. The collection agency in turn decided that the monthly payment I could afford was not enough and went into my bank account and took every cent I had.

As far as seizing funds, I'd just like to point out that a collection agency can't just take money out of your bank account. They have to get a court order, and it sounds like that's what happened in your case, since the bank was served with papers. It's not an arbitrary process.

The collection agency has to file the claim, there has to be a hearing before a judge, and there has to be proof that you were served with notice of the hearing. Then, if the judge decides you owe the money, there's a 30 day wait period to give you the opportunity to appeal the judgement before it becomes final.

I'm not saying this happened in your case, but a drastic measure like seizure of funds usually happens when either someone doesn't contest the judgement or refuses to make payments. Otherwise, I have seen judges either work out settlements or installment payments as part of the judgement.

I've also seen people go back into court and lower their installment payments, if needed, with the judge's approval. If for whatever reason you weren't able to make your case to the court, I'm sorry to hear that.

LilRedRN1973 · Jan 2, 2004

This is what my attorney said as well, but I was never notified. The only thing I ever received was a notice that they were going to garnish my wages. The garnishing never happened and then months later, my account was seized. I was truly shocked since I didn't know they could do this. I have since found out that this particular hospital does this quite often and is very impatient with those who are on payment plans. And the collection service they turned the account over to is ruthless and very uncooperative. This hospital and the collection agency reported my husband for, get this, owing .53!!! It ended up being a negative mark on his credit report. He had paid what he thought was the entire bill, but apparently was a few cents short.

I have learned so much through this process and I'm actually glad it happened because now that I'm older and have the potential to lose so much more, I am more wise. I think that they should make a personal finance class mandatory either in high school or the first year of college. There is so much that people are not aware of and this would help educate them a little. I am now in charge of my family's finances (my husband leaves it up to me) and do very well. I'm also the Treasurer of the NSNA at our school, so I guess I had better be somewhat decent at handling funds!! :chuckle

Sheri257 · Jan 2, 2004

Originally posted by RNnTraining1973
This is what my attorney said as well, but I was never notified. The only thing I ever received was a notice that they were going to garnish my wages. The garnishing never happened and then months later, my account was seized. I was truly shocked since I didn't know they could do this.

Well, they still have to get a court order for wage garnishment, and they can't do that, or the bank account seizure, unless there was an original judgement issued for the amount owed. I know they don't have to notify you for bank account seizure, because they've already been through the above mentioned court process.

I guess the question is, where you notified for the original court hearing and judgement? If not, and there's no proof that you were served in the court record, then the judgement could be invalid.

And, if the judgement was potentially invalid, then I'm not sure why you would need to file bankruptcy in the first place. So this is a bit confusing.

Mr_D · Jan 2, 2004

Originally posted by lizz
As far as seizing funds, I'd just like to point out that a collection agency can't just take money out of your bank account. They have to get a court order, . . . .

The collection agency has to file the claim, there has to be a hearing before a judge . . .

and there has to be proof that you
were served with notice of the hearing....

Then, if the judge decides you owe the money, there's a 30 day wait period to give you the opportunity to appeal the judgement before it becomes final. . . .

I'm not saying this happened in your case . . .

So what are you saying?

"Tough luck. Really. Here's how the system is suppose to work. Maybe you forgot your court date or something. But those deadbeats are the issue, not what happened to you. (And truthfully, I'm still not quite sure about your story . . . things like this only happen to irresponsible people)"

If this (and many other accounts like it) aren't enough hard evidence that this credit-system is screwed, then I don't know what could be presented here that would have any impact.

The critics of this system are for real. You can continue to dismiss them . . . but they are for real.

I am the least surprised that the "system" didn't work b/c collection agencies primary aim is to get at the money. They know their chances are diminished in a courtroom and they most likely perfected a way of keeping it out of the courtroom. I wouldn't be at all surprised if they lifted the court notice letter right out of her mailbox -- seriously. My experience with collection agencies (during my ID theft) is they are ruthless, almost criminal, and will do most anything, even illegal, to get at the $$$ and their share of it.

I pushed for legislation that prohibited anyone but the contracting party (in RNnTraining's case, the hospital) from having the power to impact a credit report. Collection agencies should have NO legal standing other than as a 3rd party service provider. Only the creditor should have the legal standing to file a bad credit report or file suit to sieze accounts. It should be impossible for a collection agency to appear on a credit report (they could do all the legwork, but the actual creditor is listed as the legal party providing the complaint).

Had these protections been in effect, RNnTraining's experience (and my own) could have been far different. It is absolutely criminal that a 3rd party to a situation can work the system and eventually sieze personal assets. This is outrageous.

RNnTraining was denied at least two jobs because of "a numerical score" and the word "bankruptcy" on a credit report. Now we read a little more of story here on this BBS. Even if one is suspicious of RNnTraining's integrity, the disparity between the two sources of information is alarming -- and proof enough that employers are making decisions on spurious and incomplete data.

And of course, since employers don't know the complexity of the entire story, they fill in the gaps and create their own simplistic one:

Originally posted by lizz
. . If you have really bad credit, then you've probably screwed a lot of creditors out of a lot of money. . .
If you've screwed your creditors, who's to say you won't screw your employer? . . . Is that honest or responsible? Hell no!

No matter your anger towards deadbeats, what happened to RNnTraining (and many many many other people) is not right.

And I get passionate about this b/c legislators parrot the same pablum as a reason to keep the status quo -- regardless of THE FACT THAT BASICALLY GOOD PEOPLE ARE GETTING HURT. Of course -- they also get big contributions from Credit agencies and Collection agencies.

In RNnTrainings situation, everybody lost. What kind of system is that? And even if the nation is full of "deadbeats" why would you defend a seriously flawed system? How much "collateral damage" is too much?

Mr_D

scj1719 · Jan 2, 2004

Originally posted by dphrn
Brownms46 stated that everytime your credit is checked, it lowers your score. I have had my credit checked so many times it is not funny, but my credit remains excellent. I don't think a credit check can hurt your credit. Does anyone know if this is true?

Yes this is the case! I was a receptionist for a mortgage company for about 4 years and every time your credit is checked it lowers your score by 5 points or so. No signifigant damage done unless it is being checked neumorous times in a short period of time!

I think the credit chek thing to get a job is completely nonsence! How do people expect you to pay your bills if you can't get a job and make money to pay them.

Originally posted by 3rdShiftGuy
I have awesome credit, I always have. I can walk into a car dealership and drive out with a $30,000 that day. My credit card has a $25,000 limit on it. It's a no brainer to maintain good credit. You don't buy what you can't pay for. And you pay on time. Duh. So I don't have a problem with people checking my credit for employment.

You know i am not blaming anyone here but me. That said....... You know that is great that you can do that but In my case I didn't buy what I couldn't pay for. I was a about 5 months pregnant and had just been laid off from a job. the $$$ my husband made wasn't enough to cover the bills, and WHO do you know that would seriously hire someone who looks like they have a beach ball under their shirt. So I didn't buy anything I couldn't pay for before I lost my job, due to down sizing. I had pleanty of $$$ to pay for it, and then some, but we can't control losing our jobs at an inconvenient time! And I didn't file bankrupcy I still pay what ever I can to the collection companies so I CAN pay my debt!

Just my 2 cents on the issue

Sharon

hogan4736, BSN, RN · Jan 2, 2004

Originally posted by RN2B4ABBY
Our financial status is none of their business and how we pay our bills has nothing to do with the type of person we are...

...Whether or not you could make your car payment last month is NONE OF THEIR BUSINESS! The general background check is enough for criminal records, hearings with the BON and so on.

Sorry if this has been hashed and rehashed (this thread is long, and I just started reading it...), but I disagree...If you are habitually late w/ rent and other bills, I believe it's a reflection of one's character, and it could reflect recklessness, and a prospective employer would and should know this...

Donning the fire retardant suit...