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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.