Possible Amendment to Fair Credit Reporting Act - Ban Employers’ Use of Credit Checks

Seyfarth Shaw LLP, one of America’s leading full-service law firms, reported Senator Dianne Feinstein of California recently introduced SA 3795 as an amendment to the  Fair Credit Reporting Act.

“Senator Feinstein’s bill proposes to restrict an employer from using a “consumer’s creditworthiness, credit standing, or credit capacity” in making any employment decision or for the basis of taking any adverse action—regardless of whether a consumer gives an employer consent to use such information.

The only exceptions to this prohibition would be for:

1) national security or FDIC clearance;

2) employment with state or local government agency which requires the use of this information;

3) employment in a management position with access to customer funds at a financial institution; or

4) as otherwise required by law.”

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