Can you use a credit report in a background investigation?
It is possible to use credit reports in background investigations. According to a study by the Society for Human Resources Management, 47% of businesses use credit reporting in their background checks for at least some positions. However, the use of credit reports is becoming increasingly limited.
Federal bills surrounding the use of credit reports have been introduced a few times but have not yet been passed. However, several states have very specific laws surrounding the use of credit reporting, and some also have pending bills. In addition, a federal bill, the Comprehensive Consumer Credit Reporting Reform Act of 2017, is currently pending. This bill would ban the use of credit reporting for many employment decisions, as well as establish a formal and improved dispute process for dealing with credit report errors and shorten the time that adverse findings can remain reportable. This bill, if signed into law, would take the option of credit report use in employment decisions largely off the table.