allowing the hiring company to engage a third party to review my
credit status. My position with this company would not involve
handling money or sensitive information, therefore, I see no reason
that this is anything more than an invasion of my privacy. Are there
any laws regarding this issue?
Unfortunately, there are no regulations forbidding a company from checking your credit report as a condition of your employment, whether you handle cash or not. In fact, under the Federal Fair Credit Reporting Act, specifically 15 USC 1681 Sec. 1681b, checking your credit as a condition of employment is permissible:
"Sec. 1681b. Permissible purposes of consumer reports
A consumer reporting agency may furnish a consumer report under the following circumstances and no other:
(1) In response to the order of a court having jurisdiction to issue such an order, or a subpoena issued in connection with proceedings before a Federal grand jury.
(2) In accordance with the written instructions of the consumer to whom it relates.
(3) To a person which it has reason to believe--
(A) intends to use the information in connection with a credit transaction involving the consumer on whom the information is to be furnished and involving the extension of credit to, or review or collection of an account of, the consumer; or
(B) intends to use the information for employment purposes; or
(C) intends to use the information in connection with the underwriting of insurance involving the consumer; or
(D) intends to use the information in connection with a determination of the consumer's eligibility for a license or other benefit granted by a governmental instrumentality required by law to consider an applicant's financial responsibility or status; or
(E) otherwise has a legitimate business need for the information in connection with a business transaction involving the consumer."
FCRA
http://www.epic.org/privacy/financial/fcra.html
Some employers use a prospective employee's credit report as a means to determine whether or not s/he will be a dependable employee - lots of dings on the credit report could be indicative of irresponsibility. *However*, there are some protections afforded to the consumer - employers are not given a full credit history. Rather, they are given a modified report of the past two years. Additionally, if you choose not to sign the document, the employer cannot access your report (he may, however, also decline to employ you):
"Federal law specifically allows potential and current employers to view a modified version of your credit report for employment purposes such as hiring and promoting.
This employment report includes much of the information about your loans and credit cards that is listed in your credit report. To protect your financial security, all Experian employment reports omit your account numbers."
Recognizing the sensitive nature of employment reports, legislators enacted several consumer protections. Among them:
• Federal law prohibits anyone from accessing an employment report without first obtaining written permission from the consumer.
• If the employment report plays any part in a decision that negatively impacts the consumer, federal law requires the company to give the consumer a copy of the report along with a written description of the consumer's rights."
Experian - All About Credit
http://www.experian.com/consumer/help/credit/employment.html
(The remainder of the page discusses extra protection measures Experian has put into place for the purpose of pre-employment reports. I urge you to give the entire page a thorough reading for a good overview of your rights.)
If you're concerned that your credit status may preclude you from employment, there are steps you can take. Get copies of your credit report from all three major reporting agencies, and check them carefully for accuracy. If you find any mistakes, dispute them immediately (you can even do this online) - credit bureaus are not allowed to report information that is in dispute for 30 days after the dispute is filed, while they investigate:
Equifax
P.O. Box 740256
Atlanta, GA 30374-0256
https://www.ai.equifax.com/ai/
TransUnion LLC
Consumer Disclosure Center
P.O. Box 1000
Chester, PA 19022
1-800-888-4213
http://www.transunion.com/Personal/PersonalSolutions.jsp
Experian
P.O. Box 2002
Allen, TX 75013
1-888-397-3742
http://www.experian.com/consumer/index.html#
Like you, I find credit screening for jobs not requiring the handling of money or sensitive data to be an unnecessary invasion of privacy. It is permissible by law, however, so the best you can do is make sure your reports are free of any mistakes, and if there are problems, explain the circumstances to your prospective employer.
I wish you luck!
--Missy
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