Suppose you are running a background check program and have job candidates who will have financial responsibilities. In that case, you may want to consider including an employment credit check as part of the hiring process.
Employment credit checks are different from regular credit checks in that you are not provided a FICO score by a credit bureau. Employment credit checks do provide valuable credit history information that can provide a viewpoint into a candidate as part of an individualized assessment.
Like regular background check reports, employment credit checks also fall under the Fair Credit Reporting Act (FCRA). Because of this FCRA regulation, you need to ensure you follow all the necessary compliance processes and documentation.
A qualified background check company can help you as well as your attorney. This post helps human resource professionals understand what is contained in an employment credit check and its importance.
While credit checks for employment do not provide a credit score, it provides several other pieces of information that give insight into a candidate’s financial responsibility.
All of these pieces of information help to provide a comprehensive financial picture of a candidate. Background check companies, like ScoutLogic, purchase this information from one of the three credit bureaus.
Employment credit checks are most frequently used as part of a background check report on a person who has access to financial information, the ability to initiate a financial transaction or make hiring decisions on vendors.
The purpose of the check is to reduce the potential for embezzlement or theft by having a clear understanding of a candidate’s financial obligations. If a candidate has substantial debt issues and late payments, that may highlight a potential risk for financial fraud.
Like all background checks, you want to make sure you are using compliant forms to gather the candidate’s consent to perform the check when hiring. Additionally, you will want to check with qualified counsel to ensure the position you are performing the employment check on has no compliance-related issues as some jurisdictions have specific rules.
Selecting the right components to build a background check report can be confusing. Compliance complexity that creates legal risk for your business only further adds to the confusion.
Background check program experts at ScoutLogic can help. Feel free to contact us to receive a complimentary consultation on implementing the best background check program for your company.
ScoutLogic is a full-service background screening company with a mission of making background checks easier for recruiters. Unlike other background screening companies, ScoutLogic assigns specific researchers to your account that act as an extension of your talent acquisition team. Our Scout model reduces turnaround times, improves quality, and delivers a great experience for recruiters & candidates.
Click here to receive a complimentary assessment of your background check program.