Illegal Soft Inquires – 11 States Preventing Employers from Taking a Look

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Illegal Soft Inquires 11 States Preventing
Employers from Taking a Look
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• Most people know that when applying for an
  apartment or job they may go through a credit
  check, but did you know that it is not legal to
  process soft inquiries in all states? In some
  cases, soft inquiries performed by employers are
  actual illegal, and despite only 13 of hiring
  managers admitting to performing soft inquiries
  for employment purposes in 2012, that is still a
  significant number.   
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• However, in 2014, 39 newly introduced bills in 19
  states resulted in 11 states preventing soft
  inquiries by introducing new employer
  restrictions.

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Employer credit checks encourage economic
discrimination

• The push to restrict third-party credit access
  when it comes to employment and residential
  services isnt new, and that is because in most
  cases persons with good credit have steady cash
  flow, meaning that individuals with financial
  problems are effectively being punished for
  having bad credit caused by low income, and are
  being denied the option of improving credit or
  circumstance.  
• In other words, if employers can discriminate
  against potential employees based solely on the
  fact that they may have had bad credit in the
  past, they can be prevented from ever improving
  credit.

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What does it mean to live in a no-credit state?

• Although soft inquiries are still permitted for
  law enforcement officers and in select financial
  sectors, all other employers in restricted states
  will face penalization if they perform unlawful
  soft inquiries. 
• Currently, states which no longer permit soft
  inquiries for employment are California,
  Colorado, Connecticut, Delaware, Hawaii,
  Illinois, Maryland, Nevada, Oregon, Vermont and
  Washington. 

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• This means that employees in these states
  (regardless of if they do or do not have existing
  financial problems) do not have to consent to a
  credit check, and if they are asked during their
  application process to sign a consent form, they
  are actually being asked to waive their legal
  rights.

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Do employment checks stay on your credit score?

• Unlike hard inquiries that you would remove with
  the help of Inquiry Busters, soft inquiries won't
  stay on record - but, that doesn't mean you
  should consent to a credit check you dont want.

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