Credit checks on Existing Employees

janselm

Do any of you ever do credit checks on existing employees? Our Director of Finance is asking if this is allowed. My first inclination is to say only if you are considering promoting them, but I don't know if you can or should otherwise.

Thanks,

Myrna Minkoff

Whatever you decide to do, you need to make sure that you comply with the Fair Credit Reporting Act. The notification and reporting provisions are very specific.

joannie

The rule of thumb I have always used is "only if there is a valid reason for doing so" and then only with a signed authorization and consent form. You might want to check with your legal counsel as your state may have some regulations regarding this, also.

sonny

And what would he do with the information? I think many of us no longer do cedit checks even at hire. . unless it would somehow pertain to the job. With this economy, divorces etc what does a credit check really tell you about someones ability to do their job. I do understand in the Finance world it might be more important.

System

We do not do credit checks here at our Bank. I have worked at banks where they were done on everyone but it didn't really help weed out the bad seeds. People's lives can change on a dime and there is no way of knowing who will embezzle at any given time. I agree that a poor credit rating does not make for a poor ee.