Consumer Credit Report
A consumer credit report can assit an employer in determining whether or not an employee is suitable for a position with a high level of responsibility, including financial decision making that will have a significant impact on an organization or prior to issuing a corporate credit card.
Of all of the screening tools available, a consumer credit report is considered to one of most sensitive. As such, there must be a business justification for the report, specifically that it is relevant to a job function. The employer must have the appropriate policies and procedures in place to ensure that the use of credit reports do not have a disparate impact amounting to discrimination.
A consumer credit report typically provides the following information:
Identifying information such as name, Social Security Number, and past addresses
Payment and credit data including, satisfied and open loans, payments, credit limits, current balances, payment histories, including late and delinquent payments and payments sent for collection. A Credit Report used for an employment decision will NOT contain a credit score.
Records of others entities who have requested the information
Public records such as judgments, liens and bankruptcies related to the person.
A signed release is necessary from the person for whom the report will be requested.