FINRA responds regarding Credit Score Myth 2 (employers)
Financial illiteracy; unnamed representative says its website was "updated" #1601S
| By Greg Fisher
In 2008, the website of the Financial Industry Regulatory Authority, Inc. (FINRA) stated that an Equifax report used in employment screening "does not include a credit score based on the requirements of the Fair Credit Reporting Act (FCRA)."
That statement is included in a document that contains concurring statements from the three main national consumer reporting agencies (that they do not provide credit scores for employment screening).
However, in 2016, the FINRA Investor Education Foundation website stated, "Credit scores are also used more and more by potential employers, landlords, utility companies and others."
That false statement remains. Employers do not use credit scores.
The top person of FINRA is Robert W. Cook, president and chief executive officer. The president of the FINRA Investor Education Foundation is Geraldine M. (Gerri) Walsh.
This week, the foundation made another false statement (one about its false statement). After a message that quoted its error, an unnamed representative replied, "That cite is out-of-date. The website was updated in July."
#FINRA still falsely states, "Credit scores are also used more and more by potential employers... " #Myth2 #1601s https://t.co/KXolkrzulo
— Greg Fisher (@creditscoring) September 1, 2016
@creditscoring @FINRA_News That cite is out-of-date. The website was updated in July. Check Your Credit Score https://t.co/C112fhyvUu.
— FINRA Foundation (@FINRAFoundation) September 14, 2016
Update is a euphemism for correct.
The identity of the author of the false information is unknown.
Speaks with (regulatory) Authority
Even worse, it appears that FINRA financial literacy outreach (such as it is) is working. A U.S. Naval Academy document states
Credit scores are also used more and more by potential employers, landlords, utility companies and others... if your credit score looks bad, you look bad.
The FINRA foundation website still states
Credit scores are also used more and more by potential employers, landlords, utility companies and others. If your credit score looks bad, you look bad.
Follow the activity of Item #1601S using that hashtag.
