Use of Credit History in Employment
WHEREAS, 43% of US employers currently conduct credit checks on job applicants, according to the Society for Human Resource Management; and
WHEREAS, empirical evidence suggests that there is no correlation between credit history and job performance; and
WHEREAS, the Equal Employment Opportunity Commission has expressed concern that the use of credit history in hiring may discriminate against people of color; and
WHEREAS, African-Americans have credit scores that are 10% to 35% lower than those of Whites, according to the Texas Department of Insurance; and
WHEREAS, lending discrimination and the foreclosure crisis have disproportionately impacted African-Americans; and
WHEREAS, unemployment is at its highest levels in decades, and higher still in the African-American community; and
WHEREAS, negative information will generally remain on a credit report for seven years, and inaccurate information is very difficult to get corrected; and
WHEREAS, the use of credit history in hiring represents a form of economic discrimination, in which those with poor credit histories are behind on their bills because they don't have a job, but cannot get a job because they are behind on their bills.
THEREFORE, BE IT RESOLVED, that the National Association for the Advancement of Colored People stands opposed to the use of credit reports in hiring as a form of economic discrimination, and will partner with allied organizations to conduct educational forums as well as work through the local, state and federal legislative process to make sure that such practices are prohibited.