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Goodbye to Credit

That’s what a new proposed change to the FCRA would tell us. The FCRA (Fair Credit Reporting Act) currently allows employers and lenders to utilize consumer credit reports in making decisions. Several states have recently banned the use of credit reports for pre-employment screening purposes, but have several exemptions that will allow an employer to use credit information. This proposal however; would take it a step further.

HR 3524 would ban the use of all credit reports for pre-employment background purposes, unless the applicant had access to proprietary, classified information and/or where it is required by law. Currently, positions in law enforcement and financial institutions require credit reports.

It is unknown whether this bill will gain much traction I the upcoming months. Needless to say, this would be classified as “Sweeping Legislation” and politics are more than likely to play into it during this election year.

Employer’s Investigative Services will continue to monitor this bill and will strive to keep the public informed of its status. As a nationwide provider of pre-employment background checks, tenant screening and drug testing, EIS has a vested interest in this legislation.

What are your thoughts on this? We would love to know. Feel free to comment or reach out to us at or (866) 350-5638.

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