Consumer Credit Report
A consumer credit report can assit an employer in determining whether or not an employee is suitable for a position with a high level of responsibility, including financial decision making that will have a significant impact on an organization or prior to issuing a corporate credit card.
Of all of the screening tools available, a consumer credit report is considered to one of most sensitive. As such, there must be a business justification for the report, specifically that it is relevant to a job function. The employer must have the appropriate policies and procedures in place to ensure that the use of credit reports do not have a disparate impact amounting to discrimination.
A consumer credit report typically provides the following information:
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Identifying information such as name, Social Security Number, and past addresses
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Payment and credit data including, satisfied and open loans, payments, credit limits, current balances, payment histories, including late and delinquent payments and payments sent for collection. A Credit Report used for an employment decision will NOT contain a credit score.
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Records of others entities who have requested the information
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Public records such as judgments, liens and bankruptcies related to the person.
A signed release is necessary from the person for whom the report will be requested.
