Tuesday, April 23, 2013
NYTimes argues that most employer credit history discrimination should be banned
The New York Times today has an editorial supporting a bill before the New York City council banning the use of credit history to eliminate job applicants in most jobs, except in a narrow range where credit checks are required by law or direct handling of money is involved. The link is here.
Part of the rationale for the bill is the tremendous number of errors in credit reports, and the difficulty in fixing them. The error problem – greatly exacerbated by identity theft – tends to drive people into structural unemployment and poverty, as does simply the idea of having made “one mistake”.
When I worked for Chilton (the predecessor of Experian) in Dallas in the 1980s, credit reports of employees was not required until 1987, and then that was dropped when TRW acquired it. But for a while a few employees were put on discipline or warning for having late payments in their credit histories..