With the unemployment rate in Ohio at it's highest in over 20 years, more people are hitting the pavement looking for a job.
On many applications, you will be informed that your credit history could be accessed in the application process. Trumbull County One Stop Administrator Bill Turner says this type of background check has been going on for a long time. "There are some that do a credit check and others that don't. They can also access any police reports, background checks, that type of thing."
The problem is, this practice is screening out thousands of people with poor credit scores. It's got the attention of an Ohio senator that's looking to ban the practice altogether after two women in southwest Ohio lost their jobs because of poor credit scores.
State Senator Ray Miller of Columbus, recently introduced Senate Bill 91 which would make it discriminatory to use a person's credit rating in regard to his or her employment. It would also not allow a credit rating to be used in the termination of an employee. "With more than 200,000 job losses (in Ohio) obviously we have people with poor credit. It makes no sense to screen them out because of the financial situation they find themselves in," explains Senator Miller.
However, business groups say they need the credit report option. It's a one stop information center. Not only can they find out your credit rating, but the report lists all your previous addresses and any names you've used. Bill Turner says those could be useful tools for some employers. "Those in the financial sector might look at something like that. Possibly retail buying, anybody that's dealing with the financial end of employment."
Senator Miller says allowing the credit checks only makes it more difficult for people to get out of debt if they can't get a job because of a low credit score. He adds that he's been getting a lot of positive response on Senate Bill 91 and hopes to see legislation enacted by the end of the year.
