Updated: 9/24/2010 9:00 AM ET|
Could you be fired for bad credit?
It appears that Congress won't act on Cohen's measure, though.
Some second thoughts
At least the federal Defense Finance and Accounting Service in Cleveland, which considered terminating dozens employees at least in part over bad credit, is now taking a second look at its decision. After the workers' situation was publicized and U.S. Rep Dennis Kucinich, D-Ohio, intervened, the agency agreed to review its actions and delay firing 39 people who had been expected to lose their jobs.
Defense Finance and Accounting Service spokesman Tom LaRock said the agency was just following guidelines set down by the Department of Defense in 2005. The workers' jobs were reclassified from "noncritical, nonsensitive" to "noncriticial, sensitive" because of workers' access to private, identifying information, such as Social Security and bank account numbers.
"Because of what we do -- paying people, paying all DOD bills -- because of that fiduciary responsibility, all DFAS positions were reclassified," LaRock said.
The guidelines require that workers be investigated not only for their credit but for other criteria including, according to a Defense Department fact sheet that LaRock supplied, "allegiance to the United States, foreign influence, foreign preference, sexual behavior, personal conduct, financial considerations, alcohol consumption, drug involvement, psychological conditions, criminal conduct, handling protected information, outside activities, and use of Information Technology (IT) systems."
Financial considerations alone rarely lead to firings, LaRock said. Typically, there is some other problem, such as "personal conduct" or false statements to investigators, he said.
If you agree that use of credit checks for employment purposes has gone too fa,r let your lawmakers know. You can find your congressional representative here and your senators here. And if you're job hunting, consider reviewing this fact sheet from the Privacy Rights Clearinghouse about what to expect.
Liz Weston is the Web's most-read personal-finance writer. She is the author of several books, most recently "The 10 Commandments of Money: Survive and Thrive in the New Economy" (find it on Bing). Weston's award-winning columns appear every Monday and Thursday, exclusively on MSN Money. Join the conversation and send in your financial questions on Liz Weston's Facebook fan page.
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I am 58 yrs old and believe me this was never considered when I was younger.
I had a security clearance with a defense contractor and they did not initiate a credit check.
This all some new B.S. of the corporate world.
The only thing a credit check is for is to determine your ability to re-pay, and if you have a low score, then no loan!
SleeplessinTx, watsonlonestar, what is it with you people In Texas do you people have no empathy or feelings for those who are less fortunate, is it the norm for You to Pass judgment on people just who in the hell do you think you are oh that's right you two are from Texas where some of the worse Politicians come from for gods sake your state Shot JFK .......
These times should be called "The Best Hits of Squalor and Persecution." Today means elements of the great plague, the Great Depression, witchhunts, the Holocaust, lynchings, the KKK, etc. all rolled into one. Back during the Great Depression, at least the lawmakers and president had the American peoples' back and launched numerous programs to help get people back on track, such as Social Security, the Federal Housing Administration and other benefits of the New Deal.
Today seems much worse than the Great Depression to me because in effect, we do not have the same government as we did back then at all. It is now an oligarchy, meaning the rich and powerful rule. Therefore in addition to a depression, we now suffer the witchhunts and new categories of discrimination, such as credit background and employment (or lack thereof) status. Such discrimination benefits corporate interests certainly, but disposes of the rights guaranteed to Americans for generations. How can we put a stop to it?
I wonder what is going to happen in the next 10 years in this country
A credit check when you get to the ER, and if it's bad they don't need to help you?
A credit check as you enter a grocery store, and as you're leaving a strip search?
Perhaps a mental, physical, and financial evaluation before you have kids?
A credit check to get a hotel room just in case you break something?
And maybe in 20 years or so.....
They will chip everyone at birth, and every time you think about doing anything dishonest, or think bad about government or any company, they fine you out of your checking account.
Things like this will keep damaging the economy and peoples livelihood. Gosh forbid that people have hard times in their lives these days. If companies keep placing such a big emphasis on credit scores and not the person themselves, they themselves will be this countries down fall. Spending will be reduced. Also, the next generation will not want any credit cards (which maybe a great thing), live with their parents longer and/or save up until they can pay for everything they want outright, because they see how their parents are struggling or hear about the credit score requirements.
Yes, the Tex Governor Perry solution to all this is Death Penalty no matter what the poor people do, to cut down Medicaid and well fare to those who have no job/skill/education (except the 100 Mexican children(politics right now)), and at the same time Tex has the lowest corporate med ins coverage in the entire country!--then the reason people get disenchanted and steal to survive if they have a medical problem, so instead of coverage and jobs for regular people, let us hire 10,000 more (gov paid) "heroes" to chase, shoot and kill them!
--And he is working to cut down on time of conviction to death, by ignoring and prohibiting/blocking any independent death penalty check up.
yes Tex has a low unemployment rate due to the fact so many companies pay no med ins, or benefits, and a lot of min Fed wage/hour rate.
Death to the people who are not part of the inside, like other 3rd world countries--but the companies here have become part of the racket!
So" freedom" here (for companies) is really the same or closer to death for people!
Speaking about credit, no one on min wage, need to apply, since they have no credit rating, and that is over 50 million families--please get in the real know here!
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