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what to do about results from a background check
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what to do about results from a background check
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We've tentatively hired a new manager, pending results of a background check. The background check came back that this person defaulted on some pretty hefty amounts on several credit cards, and a coup
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Forums » Topic Forums » Recruiting & Staffing » what to do about results from a background check
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what to do about results from a background check
posted at 12/17/2007 1:48 AM EST
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Posts: 28
First: 2/21/2007 Last: 6/9/2011 |
We've tentatively hired a new manager, pending results of a background check. The background check came back that this person defaulted on some pretty hefty amounts on several credit cards, and a couple are still in "collection." She is flagged as a fraud risk. Not having spoken to her about it yet, this appears to indicate a character flaw. But her position doesn't entail actually handling money, though it does have a componennt of soft sales. Has anyone else had this experience? What is your best advice about what to do here? She interviewed very well, and had great references of course. And she seems very capable. |
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what to do about results from a background check
posted at 1/22/2008 6:18 AM EST
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Posts: 2
First: 1/22/2008 Last: 1/22/2008 |
Wow, Though I can certainly comprehend your feelings and opinions relative to this particular Employees' "bad credit" rating---I can not be sure that your reasoning which considers him/her to be a possible "fraud risk"-- as valid nor reliable.
Further interviews, talks and consideration should be made in an effort to make a fair decision relative to this issue as a whole. There are many great and trustworthy people who have "fell on hard times" and certainly need employment to improve their finacial circumstances and credit problems. Contrastly, many embezzlers and "thieves" have perfect credit because they actually steal and use stolen funds/credit from others to cover their debts. A poor credit rating can indicate that a person is honest and rests squarely with their debt--- and chooses to avoid illegal activity to eradicate their debt issues. If all employers--jumped to these types of conclusions--just on a mere hunch-- many very decent employees will certainly be passed over due to a poor credit rating and a ripple effect ensues----No Job? Poor Credit. Poor Credit? No job...Goes hand in hand eh? Let's do our part to make a difference---Investigate our assumptions!:) |
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what to do about results from a background check
posted at 1/22/2008 6:43 AM EST
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Posts: 3870
First: 2/12/2002 Last: 11/2/2009 |
While the above post offers some good reasons for past credit problems, IMO it's more likely that this person just can't live within her means. A couple of defaults on loans might be due to circumstances; a series of them quite likely indicates - as you suggest - character flaws, irresponsible behaviors if not outright criminal behaviors.
IMO, you're taking a risk with this person if you hire her. |
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what to do about results from a background check
posted at 1/23/2008 3:02 AM EST
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Posts: 237
First: 7/10/2007 Last: 8/31/2011 |
The question you need to ask yourself is can I establish a clear link between the employees financial history and the job duties which would justify an adverse action? Given the info youve provided it sounds to me like it would be a tough case to defend. You may wish to seek legal advice before going forward. |
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what to do about results from a background check
posted at 1/24/2008 5:36 AM EST
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Posts: 80
First: 11/17/2006 Last: 7/13/2010 |
I'm very troubled by the general misuse of people's financial information for things that don't relate, at all.
This is like an insurance company telling me that my long history of spotless driving with them doesn't count because my health insurance didn't cover all of the kidney transplant I needed to live (completely made up and hypothetical), because they say that people with bad credit histories, generally, require more pay outs than people with good ones. You say this person doesn't handle cash. Does this person perform financial transactions where there is potential of disbursing or re-routing funds or assets, unilaterally? If not, then their credit history has no bearing, at all. You don't know the circumstances around the debt. As nork pointed out, if there's a long, established history of behavior that tends to repeat itself, then there may be some concerns. If all the incidents happened at once, there may be other circumstances. You yourself said that the person was qualified, interviewed very well, and had great references. The people who have seen this person work have had great things to say. This is your own personal bias here, is the impression I'm getting. Your use of the term "character flaw" for someone who has had some financial difficulties is very telling. You need to step back and ask yourself if you are really applying an objective standard here or not, and if it is one that directly can impact your company. If you find that your playing "six degrees of Kevin Bacon" where you have to go through convolutions and equivocations to show how it kind of, sort of can impact, maybe, then I don't think you've made the case. Corporations and wealthy investors go though bankruptcies and restructurings, and are still considered to be solid, after they are up and running again. Still, it's always easy for someone like me to get on an ethical high horse/soapbox when dealing with cases like this. It won't be me looking for a job if the person sells your company to the Russian mafia and "retires" to an island in the Carribean. |
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what to do about results from a background check
posted at 1/24/2008 6:14 AM EST
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Posts: 410
First: 1/26/2006 Last: 11/15/2010 |
Hi:
If a rejected job applicant is able to show that the use of credit checks has a disparate impact on the basis of a relevant protected subgroup, then the check must be job-related and consistent with business necessity. Pragmatically, any hiring procedure should be job-related. In the case at hand, the credit check information does not seem to be job-related and consistent with business necessity. However, the employer may have a wealth of additional job analysis information that establishes an obvious link between credit information and the job duties. Finally, if the information gleaned from a credit check is not job-related for a position or job family, then the employer should probably not be seeking this information in the first place. I trust this information is helpful. Dave Arnold, Ph.D. J.D. |
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what to do about results from a background check
posted at 1/24/2008 7:03 AM EST
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Posts: 28
First: 2/21/2007 Last: 6/9/2011 |
I tried posting this earlier but was unable to because I supposedly used an incorrect password. ?? Not sure what that meant, so I'll me try again.
We had a routine background check for a manager we were hiring. The company that does this for us investigates everything it is legal to investigate, credit history being one of the aspects of it. Her credit history is terrible. So we got concerned that it may show some lack in her character (which, like it or not, may very well have been the case) and as a small company, we were concerned about making a hiring mistake. This was originally posted in mid-December. I didn't start getting replies until well into the New Year. Since her starting date was before Christmas, we had to make a decision -- probably the same decision we would have made in any case. As I said, she interviewed well, seemed very capable, plus her references checked out. So, our CEO decided to meet with her after she had been with us a day or two to ask her about the bad report (after a very heavy meeting schedule annually scheduled for several departments at this time of year.) Without going into everything, she admitted to having some problems with credit cards and a mortgage, but also told him that she had worked out payback schedules with all creditors. This was not indicated on the credit report -- which we all should know is something all of us should keep on top of for accurate reporting -- your credit history through these agencies that is. So, the owner just suggested that she get in touch with these companies and make sure the information they are giving is up to date. (I'm not sure they would do that, though. I'm guessing this credit report will be with her for a long time.) She has now been with us for a little over a month, and doing very well. |
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