Cohen Aims to Eliminate Credit Checks for Potential Employees

Memphis, Tn - Representative Steve Cohen has proposed a bill that would not allow most companies to look up the credit history of job candidates.

Cohen says when people are out of work, it’s hard to keep your credit clean.

Memphian Johnnie King has been out of work for over a year. He says it’s hard to get the bills paid on time.

"It’s stressful, very stressful," says King. "Some days it’s like, how am I going to get this paid?"

Not paying bills on time is one of the quickest ways to ruin your credit, it’s also a side effect of unemployment says Cohen.

"Credit checks are not relevant to a person's ability to do a job, they shouldn't be used to impede people from gaining employment," says Cohen. "Otherwise they get in a spiral that never ends."

Cohen has filed a bill that would prohibit credit checks by employers for hiring and firing, except in the case of jobs that need FDIC clearance or jobs that require significant fiscal responsibility.

The news will be a relief to many unemployed people, says Alisha Tillery with the non-profit, RISE Foundation, who councils people about credit. Tillery says one late bill can be a 10 to 30 point hit on your credit score. She often hears the frustration of those turned away from jobs because of credit.

"They say, 'I'm a good person, I'm a great employee, I've been able to maintain employment for x number of years, how I pay my bills should have no effect on the type of job I'll be able to do in that capacity.'"

But at Gateway Group Personnel, a professional recruiter, manager Jered Haddad says companies often ask for credit checks in this competitive job market.

"They're looking to identify candidates with a good record," says Haddad. "It’s important for the owners and shareholder of companies to establish confidence in who they're hiring."

But Memphians like Johnnie King say in this economy, job seekers need all the help they can get.

"I just pray, that's all I can do is give it to him," says King.

The bill is currently in committee. It will be debated in committee next month.