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Credit Worthiness & Ethics - The battle Begins

By The Admiral ·
It's funny - the financial people say that they need to have a credit report in order to appropriately determine worthiness, the insurance people say they need it to determine the risk of a person in the industry, and employers need it to determine the worthiness of their potential employees, the video store needs it to determine if you pay a monthly fee or not, and government services needs it to determine some other things, the power company needs it to determine if you are worthy of their service, the phone company needs it to determine if you are worthy for phone services, the water company needs it to determine if you are worthy to have a drink of water..... I can go on for days...

The underlying fact is that they are determining the ability of a person based on credit history. Which is nearly like saying that they can determine the ability by the color of skin, or the sexual preference, or how skinny or fat they are, or what kind of handicap they have. What happens if they do not have a credit history? No job, no utilities, no services or no essentials.

If employers were really concerned about their company, they would take a look at their CEO's. Golden Parachutes that bankrupt, setting up multiple accounts for laundering, or even lying about products and services to lock employees in. Let me ask anyone here: Who are you more likely to hire: The former CEO of Enron or one of the employees? The CEO went bankrupt, as did the employees; both of them have poor credit.

What about all of those dot-comers who were hired with a startup company that went bankrupt, and since they had stock in the company they lost everything? The point that I am making is that you can not use credit to determine employability. Why? While the employees are loyal to the company, the companies that I have mentioned showed how loyal they were to the employees by riding their backs directly into the ground. Is the employee at fault? A portion of their problems can be placed directly on their shoulders, however, unethical dealings by companies they work with can be to blame.

As well as the credit card companies that charge unreasonable rates, loan shark mortgage companies, and unethical cash until payday companies, and companies that pop-up out of no where and pitch a lot of schemes and sign you up for a lot of junk.

One scheme that I recently found is that our company sends out congratulatory letters to new companies based on the listings with the Secretary of State. We found that there are people out there who are creating new companies and reading down the phone book the name and address of unsuspecting people, and filing new corporation papers in the unsuspecting person?s name, then they are executing on those corporations. When they do something illegal, get sued, the person who gets nailed is not the people who filed the paperwork, but the unsuspecting people that are listed on the filing work.

What does that make me lead to believe? The people with the best credit are those who have scammed someone else. (Flaw in thinking) But in today?s world where identity theft is a problem that is not being contained or seriously examined at the government level, scams and schemes that rope people in, and the lack of ethics at the corporate level, I question the practice more than I welcome it. And I question the ethics of anyone who says that it has saved them time, money, peace of mind or is a good practice.

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I agree to a point

by Tig2 In reply to Credit Worthiness & Ethic ...

Having been a victim of ID Theft, I know that my credit will never be healthy again. But the result is compounded when you consider that there are now jobs that I would be excluded from consideration for as a direct result. And not because I have done anything wrong or am less capable than another. Simply based on my credit score.

The impact to me has been a reduction in my employability as well as having to go through the process of trying to clean up the mess. It is frequently disheartening.

I don't think that one's credit rating should be a litmus test. I think that it may have some indicators- or at least it did at one time. Any more, I think that it can really only be useful if you are looking at a 10 or more year history. A sudden negative impact MIGHT help to distinguish poor choices from ID Theft... and might not.

Rather than run a credit check, you will discover much more by running a simple background check. I have had serveral run for various jobs. Nothing to find and I was successful in those engagements.

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Problem

by The Admiral In reply to I agree to a point

A 10 year check can not be done since they go back only 7, unless of course you filed for bankruptcy, then it is there 10 years. The fact of the matter is that when you are looking at one's credit, you are only looking at the current snapshot with the credit score, and not the whole deal. In fact, I would say 9 times out of 10 you are not even offered a position or an interview in order to explain your situation in order to try to get the job.

So if they are looking at that as a snapshot, then you will never see or have the ability to explain your situation in an interview.

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Filing for Chapter 7 bankruptcy is a career killer

by Why Me Worry? In reply to Credit Worthiness & Ethic ...

I once came very close to having to file for Chapter 7 because I was the principal shareholder for a family owned business (restaurant)that went under. The business was registered as an S-Corp and I had personally guaranteed the SBA loan so that I could start up the business. To make a long story short, 9/11 happened and this business started to suffer until we were finally evicted by the landlord for not being able to pay our rent. Every creditor started coming after me like a pack of wolves looking for a wounded deer and the collection notices and calls were starting to flood my mailbox. Finally, the SBA got tired of me not being able to pay off the loan and feared a default, so they filed a suit against me for the unpaid balance, which exceeded $300,000. There was no way in **** I could pay that off, so I had to hire a bankruptcy attorney to consult me on my options. I told him that I didn't want to file for bankrupcy, but if I had no choice, I was going to have to in order to protect whatever assets I had. Anyhow, I had spent over $50,000 of my own money on legal fees and finally settled the suit for pennies on the dollar, about $30,000, after numerous negotiatons with the SBA and their attorneys. The SBA wrote off the loan and I was left judgement free, but the amount of stress, nerves, and money that it cost me can never be fully explained unless you personally experience it. Having a potential bankruptcy on my credit history scared the crap out of me because I knew that if I were to apply for a job in a prestigious firm, they would quickly disqualify me. Somehow, having a bankruptcy makes you a criminal in their eyes, as if you are a swindler of some kind looking to defraud them. Numerous people have businesses that go under and are forced to file for personal bankruptcy, but why should their lives be over and them be prevented from working for someone else? This country needs major credit reform, because simply checking one's credit history is no indicator of the kind of person he/she is.

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You know what's coming next, don't you?

by TonytheTiger In reply to Credit Worthiness & Ethic ...

A federally protected class... deadbeats!

Seriously, I agree with you to a point. The world is full of what some people think are scams or should be illegal. Like rebates where you have to jump through hoops to get them (maybe you do, maybe you don't.. your "original reciept" could vanish in the mail), and, you know those car commercials saying 0% financing then in the small print it says "Residency restrictions apply"? Well, that's bank-speak for "Owns your own home".

I don't think check cashers or rent to owns are necessarily scams. I had to use one once because I had to go out of town to pick up my stolen car... the towing company wouldn't take checks or credit cards, the banks were closed and the only ATM I could find wouldn't give me that much cash at once ($420. Yes, it was later reimbursed). I was glad for the check cashing place that day. It was cheaper than driving back home, waiting for the bank to open the next day, driving back, and have another day's storage charge tacked on.

They meet a need and are certainly abused by some people, but that's the people's doing, not the company's.

It's easy to believe that there are only two kinds of people: those who've been caught and those who haven't, but I prefer not to have that pessimistic a view. I prefer to control that which I can control: my behavior, and my ethics, and trust that the majority of people are going to do the same.

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credit

by ericl_w19 In reply to Credit Worthiness & Ethic ...

I bet you complain about this because you have bad credit.I can tell you from working in the banking industry ones credit history tells MANY things about a person."credit card companies that charge unreasable rates"that complaint in itself tells me you either have a lot of debt or you always pay the minimum amount each month.Get over all these companies checking your credit history.I personally think its a good idea.If you dont have a credit history,WHY NOT?I got a credit card with 100 dollar limit when I was 18 and it quickly grew to many thousands in a year or 2.Pay your bills ontime or dont borrow money!

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And that response completely ignores

by Tig2 In reply to credit

The impact to someone who has been damaged by ID Theft.

It ISN'T just a matter of whether or not you pay your bills on time, it's a matter of whether it is YOUR legally incurred debit.

The Admiral brings another key point to the table- any time my credit history is accessed, my credit score falls. So if I am trying to rehabilitate my credit, I don't want that report accessed without my knowledge. I accomplish that by not requesting new credit. But if I have to apply for a new job, I am required to take a hit?

My credit report says VERY little about me or my capacity to be effective in the workplace. Maybe it speaks volumes about the schmuck that stole my identity, I don't know.

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maybe

by ericl_w19 In reply to And that response complet ...

accually inquiries like credit card offers and such do not lower your credit score unless you respond the offer.also you are allowed 3 inquiries for house hunting before it will impact your score.

As far as Id theft.If you did everything to clear things up then it shouldnt impact your score and the stuff the id theft did is erased from your history or you can call experian equifax and transunion and have a message put on your history about you being a id theft victim.

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