Bill would ban credit checks on job applicants

It's being called a never ending cycle. You lose your job, can't pay the bills, try to get another job, but can't, because you have bad credit. A state lawmaker is hoping to change that, and stop credit checks on potential employees.

According to the Society for Human Resources Management, 60-percent of employers surveyed say they run credit checks on potential employees. Of that number, 13-percent say they check for all candidates, and 47 percent say they only check selected candidates, 40-percent say they do not check at all.

South Carolina Senator Mike Rose sponsored a bill that would prohibit employers from using credit history as basis for determining employment, unless the job has something to do with handling money. Senator Rose says, "The high unemployment rate in the state and a lot of people laid off for no fault of their own, if they're diligent and responsible trying to get a job, it's not fair they cant get jobs because they can't pay bills."

South Carolina's unemployment rate is at a record high, more than 12-percent. Some people looking for jobs, call the bill a good thing. Richard Lucas says he's working part-time right now, but he's looking for fulltime work. Lucas says, "It's a repetition thing. Over and over, I strive hard to get a job, whether it be part time or full time. If you're running credit checks on somebody whose a good worker and has a good work history, but has lost a job due to the economy, and he's trying to get on his feet and you're running a credit check, how is he going to be able to make it in this life." Amanda Woods has been out of work since September and is looking for an office job. Woods says, "I don't think that's really fair. People are out there trying to get work, and running a credit check, actually I really don't think it's any of their business what your credit is."

According to the survey, employers say credit checks provide important information about an applicant's character, when it comes to honesty and responsibility. Lucas says, "Everybody needs a chance, and running credit checks is not a good way to do it. If somebody has good references and a good background and strong worker but he has bad credit, why shouldn't he be able to get a good job."

Under federal law, employers have to get permission from job applicants before running a credit check.

Lawmakers in 16 states, including South Carolina have introduced bills to stop employers from running credit checks on job applicants. South Carolina's bill is currently in a senate judiciary committee.