The Charlotte Observer on employers using credit scores

You wrote:

Companies consider the reports on debts and payments, but don't usually look at credit scores, according to several experts.

and

[The Employers Association president Kenny] Colbert said. "I talk to a lot of employers who say, 'You know, it may be to your advantage to hire somebody with a poor credit score because they really need steady employment.'"

What experts said that employers don't usually look at credit scores?

[Editor's note: To give the reporter some background, email to U.S. and state legislators is included in the message]

[Correspondence with the offices of some members of congress]:

From: Greg Fisher
Sent: Thursday, August 13, 2009 2:00 PM
To: Broderick, Dreilinger
Cc: Christian, Williams
Subject: credit score, employers, HR 3149

You state that employers do not hire job applicants because the employers "have erroneously linked credit scores to potential job performance."

Consumer reporting agencies Equifax, TransUnion and Experian all state that they do not provide credit scores for employment screening. Your legislation does not contain the word "score."

What evidence suggests that employers use credit scores?

[Correspondence with state senate members]:

From: creditscoring.com
To: Ohio state senator Ray Miller
Date: 4/20/2009, 01:35 AM
Cc:
      Kathleen M. Watson, director, OCPA@dss.mil, Defense Security Service (DSS)
      Patty Coller, Niki Weirich, Stan Boney, assignment@wytv.com, WYTV-TV
      info@dailycourt.com
      Whitney Ward, Dave Sess, WKBN-TV
      xyz@onestopohio.org
      savethedream@com.state.oh.us
      Jim Siegel, Columbus Dispatch
      Dale Miller, Sue Morano, Shirley Smith, Eric Kearney, Nina Turner, Fred Strahorn, Ohio state senators
Subject: credit score, employers, DSCC

dailycourt.com writes: "Miller said he is sponsoring the bill because he heard about two women whose positions at the Defense Supply Center Columbus were terminated because of their credit history... 'They (the news reporters) pointed out that these women were terminated because they had low credit scores, and I thought that was awful that we would fire someone because they had a bad credit history,' said Miller."

http://www.dailycourt.com/articles.php/4649

Also, you said, "Obviously, you need a job, and then the thing that will prevent you from being employed is having a low credit score."

http://www.wkbn.com/content/news/local/story/Credit-Check-Ban/qi7EYsS47kG9-i33q3NHXA.cspx

What evidence suggests employers use credit scores?

http://www.mygtv.net/?p=19884
http://www.com.ohio.gov/SaveTheDream/Help.aspx
http://www.com.ohio.gov/SaveTheDream/docs/BuildingorRebuildingYourCredit.pdf
http://www.legislature.state.oh.us/bills.cfm?ID=128_SB_91

---

From: creditscoring.com
Date: 4/29/09
To: R. Miller, Bill Harris, Ohio state senators
Cc:
      OCPA@dss.mil, Kathleen M. Watson, director, Defense Security Service (DSS)
      Patty Coller, assignment@wytv.com, Niki Weirich, Stan Boney, WYTV-TV
      info@dailycourt.com
      Whitney Ward, Dave Sess, WKBN-TV
      xyz@onestopohio.org
      savethedream@com.state.oh.us
      Jim Siegel, Columbus Dispatch
      Dale Miller, Sue Morano, Shirley Smith, Eric Kearney, Nina Turner, Fred Strahorn, Ohio state senators
Subject: Re: credit score, employers, DSCC II

Please reply.

---

From: creditscoring.com
To: [Ohio state senator] Ray Miller
Date: Wednesday, 5/20/2009 1:20 PM
Cc:
      OCPA@dss.mil, Kathleen M. Watson, director, Defense Security Service (DSS)
      Patty Coller, assignment@wytv.com, Niki Weirich, Stan Boney, WYTV-TV
      info@dailycourt.com
      Whitney Ward, Dave Sess, WKBN-TV
      xyz@onestopohio.org
      savethedream@com.state.oh.us
      Jim Siegel, Columbus Dispatch
      Dale Miller, Sue Morano, Shirley Smith, Eric Kearney, Nina Turner, Fred Strahorn, Ohio state senators
      Brian Hall, Porter Wright Morris & Arthur LLP
Subject: RE: credit score, employers, DSCC III

What evidence suggests employers use credit scores?

Are you a Believer or a Non-Believer?

http://www.creditscoring.com/influence/government/employercreditscorebelievers.html

---

From: Dale Miller [Ohio state senator] On Behalf Of Senator [Ray] Miller
Sent: Friday, May 22, 2009 1:11 PM
To: creditscoring.com
Subject: RE: credit score, employers, DSCC III

I don't have the evidence, but if I bill is offered, I believe evidence would come forward. If it does not, then maybe the bill would not be needed.

Regarding a believer or non-believer, if you are referring to belief in Jesus, I'm a believer.

Dale Miller

Hello again, Greg.

Our understanding is that employers do not receive credit score information when they conduct credit checks. They receive a credit history report from a background check company, but I don't believe that it says the score from the three credit reporting agencies. Hope this clarifies your question.

Regards,

Laura

John Ulzheimer of credit.com replied that he told you that scores are not used by employers.

Speaking for Kenny Colbert, Laura Hampton of The Employers Association said that employers do not receive credit scores.

One of the commenters to your story writes:

pigchef wrote on 08/30/2009 08:03:01 AM: Your credit score suffers when you are out of work for a year or more and then it is used against you to keep you from working. Great program. Is this another new program to boost jobs by our benevolent King?

Which of the other experts said that employers don't usually look at credit scores?

Please reply. This is the second request.

Greg, I am not clear on what your problem is with my story. I appreciate your interest but it sounds like you already got the information that you need. Would you like me to keep you in mind as a source for future stories? Thx.

I am starstruck by your offer of publicity, and I will keep you in mind for stories on practices helping the demise of journalism. The problem is that you fail to name your sources.

In your story's section titled "The company's rights," you write about employers reviewing credit scores, and that they "don't usually" do so. That implies that they do so on some occasions. However, regardless of employers' rights, consumer reporting agencies Equifax, TransUnion and Experian do not provide credit scores to employers. In other words, no employer may use credit scores for employment purposes, and if they do so, they violate their contracts with the CRAs.

Contrary to (precisely the opposite of) me getting the information that I need, I got information from your sources that is exactly the opposite of what I need. I want to know who said that employers don't usually get credit scores (implying that they sometimes do). So far, nobody has come forward to accept responsibility, leaving you twisting in the wind (with the rest of your colleagues).

But, what is important is not what I need; it is what your readers need: Who are the several "experts"?

I will take it (and their expert status) up with them. What is your ethics policy on naming sources? What correction will you publish?

No, you're wrong about failing to name sources. The sidebar mentions Ulzheimer as one of the sources who says that employers don't check credit scores. I talked to several employers and other HR experts who said the same thing, and you've already figured out that Kenny Colbert is one of them. I didn't name each one in the story because that would take up a lot of space and because there isn't a need to, after multiple people have said the same thing.

I'm still not sure what you're trying to get me to prove, but thanks for your interest in the story. If you have further problems, you can get in touch with my editor, Patrick Scott.

Your publication states:

Companies consider the reports on debts and payments, but don't usually look at credit scores, according to several experts.

[The Employers Association president Kenny] Colbert said. "I talk to a lot of employers who say, 'You know, it may be to your advantage to hire somebody with a poor credit score because they really need steady employment.'"

What experts said that employers don't usually look at credit scores?

If they do not usually look at scores, then they must do so on some occasions-- just not usually. In other words, your story claims that employers use credit scores. Not usually, perhaps, but according to you, they use them. Why else would you use the qualifier "usually"? In fact, one of your sources is quoted in the story, stating, "I talk to a lot of employers who say, 'You know, it may be to your advantage to hire somebody with a poor credit score because they really need steady employment.'"

In her most recent email, your reporter refers to sources that say the opposite (even though one originally referred to an employer using scores as seen in the quote above).

Who said that employers do not usually look at credit scores?

I've been trying to ignore you, but can't any further.

It may have been me that said that 'employers don't usually look at credit scores.' It, at a minimum, reflects my thoughts.

There are roughly one million employers in the United States. Their practices vary. Even if one has worked with literally thousands of employers, and advised hundreds of employers on hiring practices, it would be presumptuous to say that "all employers" do something, or that "no employer" does something.

Accordingly, as to strong trends with no known exceptions, a knowledgeable but prudent person is more inclined to say that employers usually do or do not do something. This does not imply that some do, only that the person does not purport that all one million employers act in lockstep.

Please remove me from future emails.

Thank you.