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SmartCredit.com Consumer Education President John Ulzheimer on why employers can fire employees over issues in their credit reports.
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In focus tonight money -- that can get you fired.
-- stockbrokers finances had spiraled so out of control he defaulted on several credit cards he got shown the door by his employer.
And our next guest says this could happen to anybody not just those managing other people's money joining me now John Alzheimer consumer education president for Smart credit dot com.
REK you know -- look.
If you're stockbroker if your financial advisor and you have big money problems.
I don't want you morning my money I think it's okay that you get fired.
But for other people how likely is it that their credit score is gonna play -- some of us.
Yeah IE you know it's almost like having a bus driver or the budget deal lives is not a good step -- -- fashion.
Look at it at.
At a federal level it's still completely illegal for an employer to look at your primary important Health Net and and -- -- credit report hell -- -- -- -- decision this is something that people need to realize it's not just.
Pre employment screening Jerry -- its pre employment and continued employment -- what caught this guy is that we had a job.
Is that in every dirty had to -- in every professionally can't be an effort perfection.
It it yes and no it's not every -- Fashion but it could potentially be every employer.
At the federal level it's fair game anything guys but there are some states.
They do have restrictions on the book where a credit screening -- for for continued employment or pre employment.
Can only be done for certain levels of professions so in other words someone who's handling sensitive information or rats access to cash.
Yes it's it's definitely fair game someone -- say for example like an hourly employee are.
Or -- and landscaper for example.
And then no not for that person's -- but.
But by and large you should be aware that they're not looking at your credit.
To determine what kind of credit manager you -- they're just looking out to determine if by hiring -- or like continuing to employ you.
They have a liability.
Right.
For for your yes actions and -- a lot of employers can get over things like old criminal records.
And old debt but what not many employees are gonna turn a blind eye to his dishonesty.
And that's what gets people in trouble in our web polling station Q1 dollar -- that I.
Their backgrounds.
Or if you -- -- big big financial trouble and you're working with other people's money and there's the threat may be that.
That may -- you might steal to make up for that that's that's when these people get upset now the -- told me -- that I have never heard before.
Is that they can do this on an ongoing basis how often -- they checking your records.
It depends on the employment and it depends on the -- position what you're doing for -- what got this gentleman in trouble.
Is that he was a financial advisor and apparently and there are safe -- -- rule.
It states that you have to disclose this type of issue with respect to judgments and potential wage tarnish -- And and apparently he did not any got a warning the first time in the second time that it popped out that basically said okay that that's that.
That is more it's about dishonesty and withholding information that it is about mismanaging I don't get me wrong the -- had 90000.
Dollars in defaulted credit card debt.
And at about seven seconds he stopped feeling sorry for because you -- brought this upon.
That -- dad disclosure should be there was employer should be to its clients in that case yeah right.
Yeah I like I don't think anybody disagrees and especially -- people want long haul these frauds -- over the past two years and I've summons managing my money.
I want to know how they're managing their own money and what kind of personal pressures -- on terror I -- how do you wages -- is extremely stressful -- financially but also personally.
And this -- your employer unwillingly into a problem because of air required by law.
And what all the portion of your income yeah.
Ought to be involved in that situation put them in the middle -- very bad situation.
Pop -- let's talk about something happy for just a second average household debt is to -- seven point 5% revolving credit down six point 7%.
People know a little better financial position than they'd been in the past are -- seeing this play out yourself.
It I am in this this is actually very good news it's very -- is and it you'd like to think that it's all good news but it's not there -- a little bit of a glass half full perspective to -- Some people are not in debt because think frankly cannot qualify for loans they would like to buy houses it's a good time to buy -- house.
But -- either unemployed or underemployed and the standards for getting a mortgage are still very very difficult to break so it's not a matter just people saying and what I've seen a -- I don't have a credit -- I'm not gonna get also a segment of people -- said I belong to my house right now but I -- the rates -- -- I just cannot do -- -- -- -- borrow -- that's a really good point you know people don't -- -- consideration when they see this number of course not gotten things on tonight it's always a pleasure appreciate your time.
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