BAD CREDIT DERAILS JOB SEEKERS

Concerned about rising rates of employee theft and fiduciary issues, more employers are conducting credit background checks on applicants for some positions, the Wall Street Journal reported today. Companies say that the financial information can offer insight into a candidate's level of responsibility. However, people whose previously solid credit has been damaged by the economic downturn say they are victims of circumstances beyond their control. The federal Fair Credit Reporting Act gives employers the right to conduct background checks on current and potential employees through third-party companies, with the individual's approval. Some 47 percent of employers say they check the credit history of applicants for certain positions, according to a survey by the Society for Human Resource Management of more than 430 organizations in late 2009, up from 42 percent of employers in 2006. Lawsuits or other judgments outstanding, or multiple accounts in debt collection, were the types of credit information most likely to keep an organization from extending a job offer, according to the survey.