For Americans who have been unemployed for quite some time, debt and credit problems have become the norm. When they finally get the opportunity to get their life back on track, however, many employers base their hiring choices on the unemployed consumer’s worst enemy: their credit.
Over half of companies do some sort of credit check as part of the interviewing process. Ten years ago, credit checks were rarely done, and now when there is over 9 percent unemployment, employers are deciding that credit checks are a necessary part of the process. The credit bureaus have no reason to complain. Experian, Equifax, and TransUnion get paid by these companies to run credit checks on job applicants.
Consumer protection groups have been fighting these credit checks for awhile, but now they are taking the fight to TransUnion. They have petitioned the company to stop running these credit checks, citing that TransUnion is the only privately-owned company. Unlike Experian and Equifax, they will not have to worry about negative reactions from shareholders. So far, TransUnion is still running these credit checks. In fact, they are fighting recent state laws that forbid employers from running credit checks on job applicants, so it is unlikely that consumer groups will find an ally with TransUnion. The best chance that these consumer groups have is going through local governments and supporting laws banning these credit checks.
To learn more about improving your credit and protecting yourself as a consumer, check out http://blog.mycreditspecialist.com, and go to http://www.mycreditspecialist.com to learn more about My Credit Specialist and sign up for their program today.