I know there’s been a lot of heat coming down on employers that use credit checks in the hiring process and until recently, that heat has been mostly hot air. But now there actually is some legislation in place you have to comply with.
One of the stipulations of everyone’s favorite law – the Dodd-Frank Wall Street Reform and Consumer Protection Act – amended the Fair Credit Reporting Act (FCRA) so that it now requires you to provide some information to the applicant or employee whose credit score you generated. So, all-in-all, not that big of a hardship.
I feel the most important thing to note here is that this law only applies to credit scores, specifically. So if you just use a credit report – without a score – and analyze it yourself, nothing will change for you.
Click here to find “Notification of Employment Actions Based on Credit Score” (written by our partners at Dickinson, Mackaman, Tyler & Hagan P.C.) and read more on the Dodd-Frank’s new credit score rules – including a comprehensive list of the information you’ll have to provide to applicants and employees.