January 30, 2020

Rep. Al Lawson Bill to Ban the Use of Credit Information for Employee Hiring Passes House

WASHINGTON, D.C. – The House of Representatives recently passed U.S. Rep. Al Lawson’s (FL-05) Restricting Credit Checks for Employment Decisions Act (H.R. 3614). The bill would prohibit employers from using credit reports for employment decisions, except when a credit report is required to conduct a background check by Federal, state or local law or for a national security clearance. It also prohibits hiring managers from asking questions about past defaults or bankruptcies during a job interview or including questions about credit history on applications.


H.R. 3614 passed out of Financial Services Committee in July 2019.


“As with access to capital, there are many barriers in accessing employment opportunities, particularly for communities of color and other marginalized groups based on several factors,” said Rep. Lawson, a member of the House Financial Services Committee. “One of those factors includes an individual’s credit history. The Restricting Credit Checks for Employment Decisions Act is a much-needed solution in removing employment barriers. I will continue to work with stakeholders to protect job applicants while also guaranteeing that organizations and companies can vet potential applicants adequately.”


The Restricting Credit Checks for Employment Decisions Act passed as part of Rep. Ayanna Pressley’s H.R. 3621, the Comprehensive Credit Reporting Enhancement, Disclosure, Innovation, and Transparency Act of 2020 (‘Comprehensive CREDIT Act’), which makes sweeping changes to enhance consumers’ credit reporting rights; create transparency over the reporting and credit scoring process; limit adverse reports of private student loan debt, medical debt, fraudulent mortgage debt, and debts incurred as a result of fraud and identity theft; and increase accountability of reporting agencies and the creditors and lenders who provide them information.