Why do some employers request credit reports? Essay

Bad credit reports can affect ones’ life in several negative ways. With a bad credit report and a low credit score, it is harder to receive a credit card, an automobile loan, a mortgage, or possibly a job. It is important that one is always aware of the credit decisions made. Paying bills late, maxing out credit cards, and filling out too many credit applications in a brief period will also have a negative impact on the credit report. To keep a good credit report, one should pay bills on time and apply for credit sparingly. Last, but certainly not least, one should check their credit report annually! A free credit report is available from each of the three credit reporting agencies each year. This is something one should take advantage of since it will help them judge whether they are managing their credit wisely. It is imperative that one keeps a good credit score. If not, one could miss out on many opportunities. For example, one may find an opening for their dream job that they are qualified for, but the negative credit report causes them to not get the job. Do not let this happen! Maintain a good credit report and opportunities like this will not pass by!

Meanwhile if a business decides to use any of the information obtained from the credit report to make a decision to deny the applicant for employment there are some rules they must follow. They are required to provide the applicant a “pre-adverse action disclosure notice” and a copy of “A Summary of Your Rights under the Fair Credit Reporting Act” a paper furnished by the “Federal Trade Commission” (FTC). (FTC Facts for Business, 1999). Next the applicant must also have a chance to review the report before the employer can deny the applicant. (Rosen,

17. What obligations are imposed on the employer by the Fair Credit Reporting Act of 1968 ? The Fair Credit Reporting Act of 1968 subject employers to certain disclosure obligations when they seek an investigative report from a consumer reporting agency on the job applicant, or in some instances on present employees. The employer must notify the applicant or employee in writing that such a report is being sought. And should employment be denied due to such report, the employer must notify applicant of this fact and give the name of the consumer report agency to the applicant or employee

The Federal Fair Credit Reporting Act (“FCRA”) provides borrowers with consumer rights and protections including the right to dispute inaccurate or incomplete information with the consumer-reporting agency or with the furnisher (Residential Credit Solutions, Inc.) directly. This law requires RCS to review the dispute including supporting evidence provided with the dispute. The furnisher must investigate the disputed information and provide its findings to the consumer-reporting agency or to the borrower.

The U.S. Federal government passed the Fair Credit Report Act in the 1970s to protect and ensure transparency and privacy between all U.S. Citizens in the systems of consumer reporting agencies. In other words, no one could just put information on us in these databases that are misleading or false and therefore, are obligated by law to change it when falsehood is discovered.

Identify and analyse the reasons why it is important to determine an individual’s employment status.

There are many factors that can impact on the employment relationship, both internal and external.

For some, there are just goods that they consider absolutely essential to their existence, often to the point of spending every cent just to have these. In turn, they rely on loans, and survive from paycheck to paycheck. But living on credit will then lead to a lifetime of hardship to pay off all their loans. If worse comes to worst, some may even default on these loans. But don 't blame the loans. In fact, a good credit profile can improve your credit score. Before applying for a loan, you must first learn all about loans. That is the first component in good personal money management. And during this time, when we are all being hit hard by the worldwide financial crisis, we all need to be astute when it comes to handling money. Here 's the scoop on loans. Basically, loans are quantities of money that you borrow from a lender, which can be repaid over a set period of time with the inclusion of interest. Interest is a percentage of the loan which the bank earns in return extending credit to the borrower. Loans can be secured, or where the borrower stakes a piece of his property to acquire the loan, also known as a collateral; or unsecured, where no collateral or tangible asset is pledged. One particular example of loan that many need to learn more about are bad credit loans. Those with good credit scores have a history of paying on time, and satisfying their debt obligations, while those with bad credit scores have a penchant towards late payments and neglected loans. This

Student Role: Describe the student 's role with the employer and how that role is directly related to enhancing the student 's knowledge obtained through his or her qualifying STEM degree.

Lending evaluations by Santander are based on credit background of the person (or company) who wants borrow. Through the development of a credit-approval system, Santander Consumer Finance increased an understanding into these clients on an online database which allowed for the use of real time analysis in determining interest rates for the business interactions.

     Information gathered from various nationwide newspapers have indicated that some employees of companies that handle personal consumer information such as banks and utility companies, among others, have emailed confidential loan files to unauthorized third parties. This inappropriate employee use of email can result in identity persecution of the customer who have entrusted them with their personal data.

- we need to pursue every avenue to assure that the people we hire can do the job, contribute to our growth and development, and have no past transgressions which might endanger our current workforce.

Both addendums should have the applicant’s signature. An applicant will be given the opportunity to explain any adverse credit information so that BSS can determine if an applicant is a credit risk. An adverse credit report could reveal an applicant’s likelihood of selling information for money. Any adverse criminal arrests should be considered but not the sole decision. For example, since driving is not a part of most job descriptions at BSS, a DUI conviction would not stop an applicant from being hired, but if an applicant had a history of extortion or other “white collar” crimes then the applicant should not be hired. All aspects of the Fair Credit Reporting Act (FCRA) must be followed (Heneman & Judge, 2012, p. 406). To avoid litigation and to comply with the FCRA all applicants should be given a “Summary of Your Rights under the Fair Credit Reporting Act” written by the Federal Trade Commission (Rosen, 2008, para. 23).

As technology improves, the wide use of “hard information”, such as the borrower’s credit history, reduces informational asymmetries. Therefore, long-distance small business lending is easier (Frame, Srinivasan, \& Woosley, 2001; Petersen \& Rajan, 2002). However, even with the use of credit score data, collecting ``soft information" still helps local lenders control risks to avoid delinquency (DeYoung, Glennon, \& Nigro, 2008) and provides informational advances in offering more favorable rates (Agarwal \& Hauswald, 2010).

There are certain pieces of information that an employer may not seek out concerning a potential job applicant or employee. An employer may not conduct a credit or background check of an employee or prospective employee unless the employer notifies the individual in writing and receives permission to do so.