Corra Group Offers Bankruptcies, Liens, and Judgments Background Checks as a Supplement to Employment Screening Credit Reports

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With the three major credit reporting agencies no longer reporting tax liens and civil judgments on their credit reports, Corra Group recommends supplemental bankruptcies, liens, and judgment background checks.

"Since the three credit reporting agencies no longer report tax liens and civil judgments, employers in need of this information should conduct bankruptcies, liens, and judgments," said Corra Group Co-Founder, Gordon Basichis.

Corra Group is offering bankruptcies, liens, and judgments, or BLJ’s, as they are known as either a substitute to employment credit reports for employment screening. As evidenced in an article published by Fundera, the three major credit reporting agencies are no longer reporting tax liens and civil judgments on individual credit reports.

“It has been about a year since the three major credit reporting agencies, Trans Union, Experian, and Equifax have discontinued reporting tax liens and civil judgments to their consumer credit reports,” said Corra Group Co-Founder, Gordon Basichis. “As such, employers conducting credit reports as background checks for employment screening purposes may miss information that previously they used to determine the viability of a job applicant employment potential.

“For employers who base an employment candidate’s fiduciary responsibility, or lack of it, on their ability to function well in certain critical departments, or who need credit reports to meet certain compliance mandates, this is something to take note of,” said Basichis. By conducting bankruptcies, liens, and judgments as a supplement to or a as a substitute for credit reports, employers are able to see outstanding tax liens and civil judgments that could lead to garnishments. Garnishments, meaning where creditors can have access to as much as twenty-five percent of an employees salary, add extra burden and expenses to the human resource process.

Basichis noted that there is substantial controversy as to whether employment credit reports are even a good indicator of a job applicant’s ability to perform the tasks that the job requires. He noted that he believes there are other background checks that are far more significant than credit reports. Most clients, Basichis mentioned, stick with the more standard background checks, such as criminal records, education verifications, employment verifications, and Motor Vehicle Records Checks

“Only a relatively small minority of employers even conduct credit reports,” said Basichis. “Many clients we talk to do not believe they are worth the effort. To be candid, at Corra Group, we don’t go out of our way to convince them otherwise. There are many contingences where an employment candidate can have bad credit and still be good at their job. There are frivolous expenditures where someone lives over their heads, and then there are dramatic reversals of fortune where there is little if anything an applicant can do. Student loans come to mind, as are the debts that pile up when someone is out of work, or when they are hit with huge expenditures, like medical bills.

“Still, there are employers who consider the credit report to be significant indicators of job performance or need them to meet certain compliance standards,” said Basichis. “An employer can be contented running just the employer credit report, or if they really want to know more about a candidate’s money problems, it is advisable to run bankruptcies, liens, and judgments. It is also critical that when running BLJ’s all FCRA standards are strictly observed.

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