Senate Dems new bill would ban employers from running credit checks

US Sen. Elizabeth Warren

US Senator Elizabeth Warren

Citing “basic fairness,” Democratic Senator Elizabeth Warren introduced a bill Tuesday that would ban employers from using an applicant’s credit history in the hiring process.

“This is about basic fairness — let people compete on the merits, not on whether they already have enough money to pay all their bills,” Warren said of the Equal Employment for All Act she authored, along with six other Democratic senators.

“A bad credit rating is far more often the result of unexpected medical costs, unemployment, economic downturns, or other bad breaks than it is a reflection on an individual’s character or abilities,” Warren said.  “Families have not fully recovered from the 2008 financial crisis, and too many Americans are still searching for jobs.”

According to the press release on Warren’s website, more than 40 organizations, including the Service Employees International Union, NAACP, National Council of La Raza, National Gay and Lesbian Task Force Action Fund, and the National Organization for Women, support the new legislation, which “is based on H.R. 645…introduced by Congressman Steve Cohen in 2011.”

“It was previously thought that credit history may provide insight into an individual’s character, but research has shown that an individual’s credit rating has little to no correlation with his or her ability to be successful in the workplace,” Warren said.

The exception to the new rule would be for those employees who required security clearances.

Take a look at the “Fact Sheet for the Equal Employment For All Act of 2013,” and share your thoughts by taking the poll:

[poll id="152"]

Read: Company’s amazing response to angry customer blows up web, sends sales skyrocketing

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About Janeen Capizola

"And though she be but little, she is fierce." And fun! This conservative-minded political junkie, mom of three, dancer and one-time NFL cheerleader holds a bachelor of arts degree in political science. Twitter: @JaneenBPR

  • Farrightofleft

    Who’s this for, we did that for the housing market with that brilliant subprime mortgage loans idea, and the halfrican community organizer pushing ACORN to do this, and looked what happened!! These people we elect are all for the criminals

  • Gracie Love

    Well I attest that my credit history IS NOT a direct reflection of my character. With the death of a family member, having to bury that family member because he had zero money, as a daughter, I had to take on the funeral expenses. I lost my job due to economy, I went back to school, where my newly acquired education put me in in the running for an already saturated field, competing with Young people just out of college willing to work for $9.00 per hour without the family overhead that I have as a 48 year old woman. As a woman, credit history, age, and ethnicity going against me, I have had to apply for jobs that I would normally not apply for.
    I am loyal, a quick study, on time, and take my job seriously while infusing a sense of humor at the daily grind of making a pay check.
    I see the lighter side of life and lead a healthy lifestyle by balancing
    work and fun.
    Those things I mentioned above can NEVER be found on a credit report or talking with my previous employer.

  • francoamerian

    Whether you have good credit or bad credit is not always a good barometer of whether a prospective employee is good or bad. If the job is for something that requires a background check I can understand the need to do a credit check. Otherwise it is none of the employers’ business how good or bad a prospective employees’ credit is. People have bad luck sometimes through no fault of their own.

  • missieb2000

    it’s not just the 2008 financial crisis as fauxahontas puts it- it’s obama’s depression that we haven’t put behind us.

  • Dwight Upton

    Just give your cash to the nice man at teller booth 6. He will see that it is invested wisely.

  • Eric

    Warren could use a face reduction.

  • celticnanaof3

    I would completely support that bill. I know several people who had had excellent credit records prior to 2009, but due to losing their jobs (through no fault of their own), they were unable to find another job or a job that pays what they had been earning. They had to try to live off the money in their savings accounts, but as time went by that money dried up. In the end, they had lost their homes and had no ability to pay their living expenses. Some moved in with family members. Some filed for bankruptcy protection and others didn’t for fear of how that would look for prospective employers. It has been a horrible experience for them and it doesn’t look as if they will ever recover from it. Employers and auto insurance companies should not be permitted to check anyone’s credit reports any more than doctor’s offices asking for social security numbers for their patients. Both should be personal, privileged information.