Employment check on credit illegal?

[demi]

This morning, listening to the news, trying to wake up, there was a PSA on TV stating that it is illegal for someone to check your credit for employment.  Since when?  Anybody know anything about this.  New law?  Or perhaps something in California?

[Junejer]

They can't hard INQ you, it has to be a soft.

[Anonymous]

I'm pretty sure employers can pull the reports unless the employee did not sign the "authorization to pull data from a CRA" form.

[Anonymous]

Most employers do require you to sign a form allowing them to check your credit. I remember being 17 and apping for a job at Dress Barn and they sure did. That was, of course, back in '87.

If they get your permission, like everyone else said, it's not illegal.

If they pull without your permission, that's illegal, employer or not (since NO ONE can pull your credit without your expressed permission -- CAs and current creditors excluded, of course). And of course, like ByrdMan said, it's gotta be a "soft pull" and not a hard ugly.

[demi]

OK, saw the ad again this morning, this time after coffee !  It was saying employees CAN check credit, a PSA, know the facts, and gave a website (which I meant to write down for posting).

Isn't really a concern for me, hopefully very stable in my job, and credit ok anyway.  But, thought others would be interested when I thought I had been a major change in laws .  Well, off to the store to get some ear cleaning stuff LOL

[GFer]

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@Junejer wrote:
They can't hard INQ you, it has to be a soft.

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REally???

My employer made us all sign the sheets a few months back and it was definitely a HARD inquiry. I'm still mad about the hard inquiry, but felt I had to endure this.

[Anonymous]

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@Junejer wrote:
They can't hard INQ you, it has to be a soft.

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While I don't doubt your word, I *will* say that I'll bet whether they DO or DON'T hard you depends on how knowledgeable the HR person is. When he had his background check for his present Fed job, they harded him (early 2000s). Twice.

Though I didn't know doodly-squat about FICOs at the time, I did know about CRs and the display of inquiries. And when a month went by after being offered the job, his accepting it, and hearing about his "start date," I checked his CRs (with him at my elbow) to see if they'd checked his credit yet. Since his credit was bad enough that we were denied a mortgage loan back then, we were REALLY worried about that!!

When DH had his security clearance renewal about 4 years ago, they harded him again.
(And NO, I don't wanna even THINK about how awful his credit was then! I'm just REALLY thankful that he was able to keep his clearance!!)

By the same token, when I accepted a job with a government contractor (back in the mid-nineties), they harded me, too. The HR department head didn't even realize that I was able to see that she did!!

Hopefully, the average employer knows better now!

[Anonymous]

And in addition: Even if I pulled his CRs tomorrow and saw that they harded him again, you bet your bumpers there is NO way I'd complain or send a Non-PP letter!!

Anything Fed scares the livin' poop outta me!!! o_O

[Junejer]

GFer and Wonderin, I don't doubt either one of you. GFer, I believe that you had to sign something, but that doesn't give them the right to a hard INQ. They can see everything that they need to see via a soft. They see everything (thru a soft) that they can see on a hard INQ.

The thing is that hard INQs are the brainchild of CRAs, because creditors wanted to see who else is extending you, or attempting to extend you credit. Therefore, they could theoretically have all INQs coded as soft (but creditors don't like that). That said, there is no reason that an employer would need to code your INQ as hard. Does it happen? Yep, it happened to me several years ago, before this place existed. Will it happen to me again? Perhaps, but I will also write a letter asking them to recode. Also, when they have me sign that little form at application time that gives them the right to check my credit, I ALWAYS write that they don't have permission to hard INQ me, only soft.

Wonderin, I don't blame you for the way you feel about govt or your DH's livelihood. I wouldn't upset that applecart either.

Long and short of it is that the code doesn't speak to hard or soft, but the protocol is employers usually do softs.