Many companies refer to credit reports when investigating job applicants
Many companies refer to credit reports when investigating job applicants. The Fair Credit Reporting Act requires employers to notify and receive authorization from applicants to use their credit reports in making hiring decisions, and to give them notice if they are rejected because of information in a credit report. (For more information on employers’ responsibilities under The Fair Credit Reporting Act,
a. In your judgment, does evidence of failure to pay debts constitute useful information in the job selection process? Explain.
b. Is the use of that information an “invasion of privacy” as you understand it? Explain.
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