A coalition of more than 50 labor, civil rights, and community groups today called on the New York City Council to pass Intro. 857, the Stop Credit Discrimination in Employment Act, which would ban credit checks by employers in NYC.More than a dozen NYC Council Members joined the coalition, along with New Yorkers harmed by employment credit checks, on the steps of City Hall to expose the unwarranted and discriminatory impact of this growing practice.
“Employers should not deny people jobs based on their credit history – especially during this time of severe economic hardship,” said Council Member Brad Lander, Chair of the Progressive Caucus. “Whether from catastrophic medical expenses, death of a spouse, or predatory lending, many New Yorkers have poor credit through little or no fault of their own.”
Speakers at the press event included an Iraq War veteran, a retail worker, and a community college student – all denied desperately-needed jobs based on negative and erroneous information in their credit reports.
“I served in the military for 30 years and received the highest level security clearances,” said Brooklyn resident and war veteran Emmett Pinkston. “Yet I was turned down for a job as a TSA baggage screener, because of a bogus charge on my credit report. I found myself stuck at a low paying job.”
The coalition underscored the national credit reporting agencies’ role in driving employment credit checks.
“The credit reporting agencies are a powerful industry that has carved out a new profit niche by marketing and selling people’s credit reports to employers,” said Andy Morrison from NYPIRG. “This is despite the fact that TransUnion, the nation’s third largest credit bureau, admitted that there is no demonstrated link between someone’s credit report and their job performance or their likelihood to commit fraud.”
Council Members described stories from constituents who were denied jobs based on credit checks, in entry-level positions and in cases where credit information supplied to employers was incorrect.
“Enough is enough!” said Council Member Debi Rose. “Few in this bad economy have escaped with their credit history unscathed. We do not want to return to the days of Dickensian debtors prisons. And as Chair of the Council’s Civil Rights Committee, I am concerned about the disparate impact this practice has on protected classes, which are often the populations with the highest unemployment rates in the city.”
“Making hiring decisions based on credit is blatantly discriminatory,” said Council Member and Deputy Majority Leader Leroy Comrie. “Intro. 857 will put an end to this practice and help ensure that employers take into consideration a person’s ability to do the job, instead of circumstances that are sometimes out of people’s hands.”
“Credit checks by employers ultimately serve to perpetuate inequality, and should be seen as a serious matter of economic justice,” said Sarah Ludwig, Co-Director of NEDAP. “Insofar as credit reports reflect back our separate and unequal financial system, their use will inevitably have disparate impact on people and communities of color.”
NYC college students voiced concern about the rising cost of higher education and the impact that credit checks will have on their job prospects upon graduation. According to a recent study, half of college graduates since 2008 are either unemployed or underemployed.
“I have more than $30,000 in student loans, not to mention credit card debt,” said Samantha Perez, a student at Borough of Manhattan Community College. “Due to my credit history, I’ve been denied employment by the Swatch Store in Midtown and my campus bookstore. How am I supposed to pay off my student loans if I can’t get a job because of my debts?”
“Too many students are taking out debt for college to get a job, only to learn that that very debt can keep them from getting a job,” said Council Member Garodnick. “Credit history can mean any number of things, but it is not a reliable indicator of future job performance.”
“Using credit checks as part of the criteria in hiring does nothing to help the economy of our city grow,” said Council Member Ydanis Rodriguez, Chair of the Higher Education Committee. “Student debt is the number one problem facing college graduates today. We must pass Intro. 857 for the sake of our city’s future workforce and economy.”
With 35 bill sponsors, Intro. 857 has strong veto-proof support in the NYC Council.
