Background check prior to hiring?

What is the name of your state? Illinois

Hello, I am asking this question for a friend. They interviewed for a salesman position and the company is doing a background check. What it says they are looking at is the following:

1. background (not sure with the rest listed below, what would be left in the background)

2. references

3. employment record (can they ask why someone was terminated or only if they would be eligible for rehire AND can they ask how much they made?)

4. Law en formcements and school records

5. Consumer Report (is this a credit check). This person has had two attempts at foreclosure in less than 4 or 5 years. They have also had a few court cases from credit cards. Does that lower their credit drastically?
Would being taken to court by an ex-spouse for owing back child support show up on a credit check?

6. Credit history - can they find out how much in debt he is

7. Information about his character, general reupation and mode of living, do they find that out through your references?

I know this is a lot to ask, but they are in a rut and desperate for a job...this may be their only hope.

can they ask why someone was terminated or only if they would be eligible for rehire AND can they ask how much they made

Yes, they can ask why someone was terminated. No, they are not limited to asking if they are eligible for rehire. Yes, they can ask how much someone made.

Does that lower their credit drastically?

Being take to court regarding credit card payments? Uh, yeah, I'd say that's a credit-lower-er.

Would being taken to court by an ex-spouse for owing back child support show up on a credit check?

Depends on how deep the check is. All credit checks, all background checks, and all reference checks are not created equal.

can they find out how much in debt he is

Yes, if they choose to look. They may or may not do so.

do they find that out through your references

They can find that out any number of ways. Just the answers they get to their questions will tell them quite a lot.

The bottom line is that it does not appear that they are asking anything that they are not legally permitted to ask.

Background check before hiring?

Thanks for the information.

I didnt' know for sure what they could ask about a person's previous employment. They have worked with this company many years before but they have to go through the whole hiring process again, which is ok.

We weren't sure as to what kind of information might turn up so I suggested that I put a post here.

They have been through four salesman jobs in five years and their credit is shaky at best I would think with the forcloures (which were dismissed, but the fact remains that they had a foreclosure complain filled against them paying it off or selling their home in the nick of time) and credit card court cases might hamper a hiring if they do this much checking into.

I thought all that a company could ask was if they person was eligible for rehire and not why they were fired in the first place. Thanks for the heads up. After reading what you wrote and what I wrote, and what they are looking into, I must say despite having worked with them years ago and getting the interview, it looks glim.

I thought all that a company could ask was if they person was eligible for rehire and not why they were fired in the first place.

A lot of people believe that. It's not true.

What has happened is that because of an erroneous belief that an employer can be sued if they share ANYTHING negative, no matter how accurate, many employers have chosen to limit the information they provide to dates of employment, salary, and occasionally rehire status. Because, for many years, so many companies had adopted that policy, many people falsely came to believe it was the law. However, no state has such a limitation, and more states than not have passed hold-harmless agreements which protect employers as long as the information they provide is true, accurate and supportable.

Keep in mind that I have told you what CAN be given in a reference/background check. That doesn 't necessarily mean that they will ask all these questions, or that if they do, they will be given answers. They may not have separate lists of information based on position. For example, I generally only do credit checks on accounting and finance people. But if I were hiring a receptionist, I wouldn't have a separate release just for that position; the one I gave to the receptionist candidates would still show credit on it. I'd just omit those questions when I talked to their references.

Finally, if his credit proves to be a problem, he might try a different line of work.

Background check before hiring?

He's a salesman who would drive to the branch office to pick up their company car for the day and may handle money. He's an environmental salesman. So I am thinking they may ask to do a credit check.

MikeK1965 said:

He's a salesman who would drive to the branch office to pick up their company car for the day and may handle money. He's an environmental salesman. So I am thinking they may ask to do a credit check.

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Man to be honest with you -- almost all companies these days perform an investigative consumer report on you.. It verifys employment, education, criminal (county records for the most part), driving records, credit and believe it or not the companies that do the check these days often times makes a hiring decision on you based on any negative information that could be contained in that report. I have a friend that was fired for a bankruptcy -- yes you got it a bankruptcy... the negligent hiring lawsuits against major companies these days has been great and when they have that report in your employment file if anything was to happen where they would get sued they will then say "his background revealed nothing that would indicate a problem" so they feel that it protects then which in most cases it does not really even matter... they still have to pay big settlements for criminal acts committed by employees while they are on the job**************

Background check before hiring?

If most companies do that, then it's amazing how he has been able to get a job in the environmental sales field repeatedly. I don't mean to sound harsh and am trying to help a friend out, but to face reality, he has had two foreclosure processes started against him one in late '02 and another in late '04. One he was able to to get on some payment plan, the next time he had to sell the house before the process was finalized.

He also has been taken to court for "contract complaint" for credit cards in the start of '04 which he lost because he never showed up for and then paid off when he sold his house and another one in late of '04 which is still ongoing for just under $8,500. And these are just the ones he is upfront about. Couple that with four jobs in five years (all the same field) it amazes me.

I'm trying to help him out and reasearching what can be found out and from the looks of it, all this information may and probably will come out.

If they run credit checks on people with this history and still offer them a job, then there is hope for many more out there. I hate to say that, but it's true.

Mike, take Redemption Man's claims with a grain of salt. He thinks he knows a heck of a lot more than he actually does.

Many companies do not run credit checks, even if they run other background checks.

Yes I agree but like was stated before not all investigative reports are created equal. The CRAs custom make a background package depending on what a certain employer wants. I have never had a company perform a civil records check although some will if they request it in the check they run. Not that many companies run credit checks they are most concerned with Criminal acts, employment verification, educational credentials, and then credit if they check that. Go through the check and see they will disclose the scope of the check with him and if he is not hired because of it he can get a copy of the report.....but like you said if the employer does not care then it is not going to matter anyway....

For a number of legal and privacy reasons, an individual cannot get a copy of another person’s credit report without permission. The federal Fair Credit Reporting Act (FCRA) specifies under what circumstances a credit report can be obtained and by whom.
Access to credit reports is restricted to businesses with a specific need, and to consumers who request their own report. You may get another person’s report if you have power of attorney or are the executor of an estate, or with permission. You may also obtain the report of your child, if he or she is a minor. Limitations on allowing individuals to get the credit reports of other people exist to prevent potential fraud and identity theft risks, along with other uses that would simply be inappropriate. Anyone who obtains a copy of someone else’s credit report under false pretenses can be fined substantially and jailed for up to a year.

Only businesses or individuals with a "permissible purpose" can access your 3.credit report. "Permissible purpose" is defined in Section 604 of the Fair Credit Reporting Act (FCRA).

Examples of permissible purpose include:

1. Accessing a credit report in connection with a credit transaction involving the consumer,
2.For the underwriting of insurance involving the consumer,
In connection with determining eligibility for a license or government benefit, or
For a business transaction initiated by a consumer.

Federal law allows potential employers to view a modified version of a potential employee’s credit report for employment purposes, which is sometimes referred to as a credit header. The main reason employers may request a modified credit report is to get an indication of a potential employee’s personal integrity and honesty by how that person manages his or her financial obligations. However, employers must obtain the potential employee’s written consent prior to conducting this inquiry. A modified credit report omits account numbers for protection and privacy.

Under the Fair Credit Reporting Act or FCRA (15 U.S.C. §1681), employers must get an employee's written consent before seeking that employee's credit report. Many employers routinely include a request for such consent in their employment applications. If you decide not to hire or promote someone based on information in the credit report, you must give the person a copy of the report and tell them of their right to challenge the report under the FCRA. Some states have more stringent rules limiting the use of credit reports.

Background check before hiring?

He did say he had to sign some forms for all of those things to be done. Background check and consumer report. His credit can't be even mediocre with the things I listed above and those are just the ones I know about. He even had a car repoed. in the last few years.

This poor guy has no clue I am thinking. Despite what I told him what I learned from this site, he says that his credit report could be improved (could be improved??? That's putting it mildly) but that his job history should be fine. He has had four (actually five-one job last a few weeks before he was fired for working two jobs at the same time, hours and all) since Sept. of 2002.

If I am understading things correctly, which I think I am, all of this information will more than likely come out in the background and consumer credit check.

Okay, let's say that everything about the guy comes out. He has no secrets. Every last detail is available for the potential employer to see. And you're right, it is POSSIBLE (I'm not saying probable, just possible) that this may happen.

You're assuming that the only chance your friend has of gaining employment is if this all stays hidden; that as soon as any employer sees a shaky credit history he will immediately be dropped from consideration.

But that's not necessarily the case. They may not care about this information for salespeople and ask only for the sake of consistancy with positions of a similar standing in the company. They may hire him on probation until they see what he can do in spite of his poor credit rating. They may find that as poor as his history is, other candidates have ratings that are even poorer. Or, they might turn him down, but for reasons unrelated to his credit. You're taking the dimmest possible view of this, and it's not necessarily a supportable position.

Background check before hiring?

Oh I am trying to be supportive, just this is happening a few too many times in a very short time frame. I do think he can find work even if this comes out, it's keeping the work that seems to be the problem. Then when a new job is needed (in the same field) all of this can follow. Do I want to be glim, no, of course not, but repetition is leading me down that path this time.

Anyways, maybe this will be the one that does it for him. Maybe he will be so scared of what can come out and how his job and credit history can effect him in this field that he will clean it up. There's always hope, I hope he takes it.

Many companies do not run credit checks, even if they run other background checks.

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To second this statement by cbg, just from my personal experience. I have a very responsible financial position with the city and even THEY did only a background check, and not a credit check. Needless to say, I was surprised, but gratefully so.