Could Having Bad Credit Cost Me a Job?

Posted on in Debt Relief

Illinois bnkruptcy attorneyThe ability to pass an employee background is an increasingly common requirement in today’s highly competitive job market. As a further method of screening candidates, companies may even request permission to run a credit report. If you are having trouble paying your bills or are considering filing for bankruptcy, you are likely what impact this could have on you. Illinois laws are clear on when an employer can request consumer credit information, as well as how they may use it in making hiring decisions.

Use of Credit Information in Hiring Decisions

The use of credit reports in employment-related matters is a controversial practice, and many states are exploring ways to limit and restrict the effect they have on hiring practices. The National Conference of State Legislatures (NCSL) reports that 17 states have legislation pending regarding the use of credit information in hiring decisions while 11, including Illinois, currently limit its use.

Locally, the Employee Credit Privacy Act was passed under Illinois law in 2010. The act prohibits companies of all sizes from seeking credit reports from job candidates, though there are numerous exceptions to this rule. Employers who may seek consumer credit information as part of a background check on future employees include:

  • State and local government agencies;
  • State and federal debt collection services;
  • State law enforcement and investigative units;
  • Banks, savings and loan companies, and other financial holding institutions;
  • Insurance companies and surety businesses.

The Act also allows credit disclosures if it relates to bona fide occupational requirements, such as for managerial positions involving the direction and control of the business, if the employee is required to be bonded, if they have signing power over a company’s assets, or if they will have access to cash or assets worth $2,500 or more.

What Employers Look for on Credit Reports

A recent NerdWallet article reports that, rather than looking at your credit score, most employers would likely be more interested in your credit history and payments. Any judgments they might make are likely to be about your trustworthiness and your ability to be responsible. In circumstances where the law does allow credit reports to be used in hiring decisions, the article claims there are two primary purposes:

  • To eliminate the potential for theft and embezzlement;
  • To avoid potential legal liability for negligent hiring.

Having a bankruptcy show up on your credit report can reflect that while an illness, job loss, divorce, or other situation caused some financial turmoil, you took the steps necessary to address the situation.

Contact Us Today for Help with Your Case

Outstanding debts and problems with credit collection agencies can have a significant impact on every area of your life. When you are struggling with these situations, contact the Law Offices Of Eric G. Zelazny to get the legal help you need. A passionate Tinley Park bankruptcy and debt relief attorney at our office can advise you on the best course of action to help you regain financial security. Call or contact us online and request a free consultation today.

 

Sources:

http://www.ncsl.org/research/financial-services-and-commerce/use-of-credit-information-in-employment-2015-legislation.aspx

https://www.nerdwallet.com/blog/finance/credit-score-employer-checking/

http://www.ilga.gov/legislation/ilcs/ilcs3.asp?ActID=3277&ChapterID=68

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