There are a multitude of systemic problems that lead individuals to end up in debt – it is no reliable indicator of their potential for being irresponsible or immoral, or indeed of any character insights.
Bohemia, NY (PRWEB) May 14, 2013
On May 14, John Monderine, CEO of accounts receivable collection agency Rapid Recovery Solution, comments on the impact that credit scores have on job applications.
According to an article in the [New York Times, prospective employers are rejecting more and more job applicants due to their bad credit scores. With more people unemployed it is increasingly harder to attain a job as well as pay bills on time. Credit reporting bureaus have been lending their services to companies who wish to check out the credit reports of potential employees.
This phenomenon has created quite a conundrum as Chi Chi Wu, staff lawyer at the National Consumer Law Center, explains, “Someone loses their job, so they can’t pay their bills — and now they can’t get a job because they couldn’t pay their bills because they lost a job? It’s this Catch-22 that makes no sense.” It often perceived as a form of discrimination given that studies have concluded that blacks and Hispanics are more likely to have lower credit scores than whites.
Almost 47% of employers check credit scores when making hiring decisions, according to a survey done by the Society for Human Resource Management. Special interest groups have taken action to mitigate the impact of consumer discrimination as Ms. Ludwig explains, “Prohibiting the use of credit checks in employment is now our number one campaign. Because it’s discriminatory. And because the last thing we need in a recession is another barrier to employment.”
Others are not as quick to put the blame on credit reporting bureaus or other industry trade groups, as Terry Clemans, executive director of the National Consumer Reporting Association comments: “Credit is one data point that businesses are using to get an overall feel,” asking “Does this consumer have a lifestyle that fits the job? Is this someone who I can trust?”
Advocates of investigating credit reports point to the insights employers can gain into an applicant’s character: “Does he take responsibility for debts, or does she blame problems on someone or something else?”
John Monderine, CEO of Rapid Recovery Solution, an accounts receivable collection agency, says that debt, in many cases, has hardly any bearing on the debtor’s character. “There are a multitude of systemic problems that lead individuals to end up in debt – it is no reliable indicator of their potential for being irresponsible or immoral, or indeed of any character insights.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.