Members of Congress say credit scores are used by employers

Also, see National Financial Literacy Month, 2011 (video), Myth: Employers use credit scores What the President said Credit bureaus claim that they do not provide credit scores for employment screening Groundhog Day, 2012 Groundhog Day, 2011 Credit scores in employment, Believers and Nonbelievers Video: Media say employers use scores (2009) Federal Reserve on credit scores used by employers, 2009 Federal Reserve on credit scores used by employers, 2010 Federal Reserve on credit scores used by employers, 2010 (one more time) Members of Congress say credit scores are used by employers Members of Congress say credit scores are used by employers II Members of Congress say credit scores are used by employers III U.S. House representative testifies employers use credit scores U.S. Treasury Suggests Employers Use Credit Scores DoD agency states it does not use credit scores for security clearances White House credit score requirements Mentions of credit scores in employment in Oregon Washington attorney general on what "can" and "may" happen FICO company warns employers use credit scores that credit reporting agencies deny providing TransUnion employers survey credit report question error Training TransUnion on credit scores, employers Equifax: Employers can know your credit score Training Equifax on credit scores, employers Experian: Employers use credit scores Training Experian on credit scores, employers VantageScore: Employers use credit scores Employers using credit scores blogger meme Canada Day: Reuters, FICO and the employers myth USA TODAY will not reveal its source USA TODAY will not reveal its source II McClatchy newspaper will not identify its sources AP reports legislator said employers use credit scores Dallas Morning News on employers using Equifax credit scores and reports Influence: Hearst; San Francisco Chronicle Influence: Tribune; LA Times Credit score use by employers depiction by CBS Influence: CBS U.S. PIRG fails to prove employers use credit scores Influence: Consumers Union

United States House of Representatives Resolution 3149 of the first session of the 111th Congress was introduced on July 9, 2009, and was referred to the House Committee on Financial Services the same day. The sponsor "unveiled" the legislation 20 days later.

Dissonance

Sponsor Representative Steve Cohen's press release states, "Far too often, employers turn down 'credit challenged' applicants because they have erroneously linked credit scores to potential job performance."

Further, appearing at the unveiling was another House member whose press release states, "Tomorrow, U.S. Congressman Luis V. Gutierrez (D-IL), Chair of the Subcommittee on Financial Institutions and Consumer Credit, will join Congressman Steve Cohen (D-TN) in unveiling new legislation to prohibit current and prospective employers from using credit scores as part of the hiring or firing processes."

However, H.R. 3149 does not contain the words "credit score." And, consumer reporting agencies Equifax, TransUnion and Experian do not provide credit scores for employment screening.

Life imitates art

There are two schools in the credit-score-use-by-employers story. Some say that they are provided to employers (including the Federal Reserve, the Department of the Treasury, and Equifax, TransUnion and Experian), and some say that they do not provide them (including Equifax, TransUnion and Experian).

During the noise after the legislation's announcement, a guest—a provider of consumer reports for employment purposes—on Fox News makes the point that they don't even sell credit scores with the reports that they provide. Ignoring that, the interviewer uses the employers/scores line again.

Appearing with the congressmen at the press conference was U.S. PIRG who corresponded with creditscoring.com regarding U.S. PIRG's line about employers using credit scores.

Congress plans to make perpetual motion illegal later this year.

[January 29, 2010 email to the congressman and co-sponsors]