A new law would prohibit employers from rejecting applicants based on credit reports
It’s a vicious cycle: You lose your job, causing you to fall behind on your mortgage, car payments and other bills. As a result, your credit suffers. You finally land an interview with good prospects, but a credit check costs you the job.
You need employment to improve your finances, but it’s your finances that are holding you back from employment.
Some legislators are taking steps to prevent this situation from occurring. Recently a House bill was introduced that would prohibit employers from using consumer credit checks to make adverse employment decisions.
The Equal Employment for All Act (H.R. 3149) would amend the Fair Credit Report Act and prohibit employers from making hiring decisions based on an applicant’s consumer credit report. The Act makes exceptions for financial firms, government agencies and jobs that require certain security clearances.
The bill was introduced by Representative Steve Cohen from Tennessee. According to Cohen, the bill would provide some of our country’s “most vulnerable, ‘credit challenged’ citizens” the chance to start rebuilding their credit by getting a job.
Supporters of the bill do not believe that a person’s credit history is a reflection of how they would perform on the job. Critics of the bill, however, point to the vulnerability of small businesses to employee theft, citing the bill’s limited exceptions as a cause of concern.
To read more on the Equal Employment for All Act, click here for the complete article from the U.S. News and World Report.
Regardless of whether the bill passes, one thing remains certain: an experienced Texas bankruptcy attorney is the best source of advice for consumers facing credit difficulties. A Texas bankruptcy lawyer can explain your options and help you make decisions that will get you back on the road to financial stability.