Council Member Dromm (right), joined by Council Members Koo (left) and Constantinides (center), places his pin on a map indicating council support for Intro. 261. Check out more photos from the event.
July 23, 2014 – College students and members of the NYC Coalition to Stop Credit Checks in Employment gathered today outside Queens College to call on the NYC Council to ban employment credit checks, which constitute an unfair barrier to jobs for students saddled with student loan debt, among others.
“Unlike the challenges students face in the classroom that help us move forward, the use of credit checks in employment does nothing but hold us back,” said Aileen Sheil, Queens College student and Chairperson of the NYPIRG Board of Directors. “With the rising cost of tuition, and the growing dependence on debt to pay for school, students can hardly afford another hurdle. That is why New York City must act now to ban this unfair, discriminatory hiring practice.”
The students urged the NYC Council to pass Intro. 261, the Stop Credit Discrimination in Employment Act, which would prohibit the use of credit history for hiring and other employment-related purposes, throughout the five boroughs. Members of the Queens delegation of the NYC Council joined the press conference to express their support for swift passage of the bill.
Council member Costa Constantinides said, “We must end the use of consumer credit checks in employment and hiring decisions. The practice can make it difficult for our most vulnerable residents to secure job opportunities and perpetuates the cycle of unemployment. Everyone deserves an equal playing field when applying for jobs without discrimination on the basis of credit history. I commend the Queens College students, New Economy Project, and my colleagues in the Council for their leadership on this important issue.”
“The use of credit checks to determine if one is employable has become problematic in New York City, particularly for our young people,” said Council member Peter Koo. “Many leave school having incurred student loan and credit card debt as a necessary means to receiving their education. And what we are finding is that, because of that debt, they have a hard time securing employment due to the practice of debt discrimination. This is a catch-22 that they and many others who have been seeking gainful employment face, and it must end now.”
Intro. 261 has overwhelming support in the City Council, with 39 sponsors. In addition, Mayor de Blasio has indicated support for a ban on employment credit checks. During his mayoral campaign, he said, “I agree entirely with the efforts to ban the practice of [credit] checks being used in any kind of employment or hiring practice,” and his campaign website called employment credit checks a “needless roadblock to economic opportunity.”
Speakers underscored the national credit reporting industry’s role in driving employment credit checks to expand markets and boost profits. “TransUnion, one of the nation’s largest credit bureaus, has publicly admitted that there is no demonstrated link between someone’s credit report and their job performance or their likelihood to commit fraud, yet the credit bureaus continue to market their product to employers,” said Joby Thoyalil, Campaigns Organizer at New Economy Project.
“Credit reports are not designed as employment screening tools and are woefully inaccurate,” said Tashi Lhewa, Staff Attorney in the Queens office of the Legal Aid Society. “There is absolutely no evidence connecting credit reports and job performance, and employment credit checks have a disproportionately negative impact on minority, immigrant and low-income households. It is time to draw a line in the sand by banning this practice, which traps job seekers in a vicious cycle of debt and unemployment.”
“Credit history gives no indication of a person’s ability to work,” said Council Member Donovan Richards. “When we no longer allow companies to check the credit history of applicants, we greatly aid millions of people rebuilding their credit, especially recent graduates who needed loans. As a co-sponsor of this bill, I am proud to fight to eliminate the discriminatory use of credit checks by employers.”
“Employers cannot be allowed to turn down qualified, hardworking New Yorkers simply for having come under tough financial times at one point in their lives,” said Council member Elizabeth Crowley. “Discriminating based on credit history is counter-productive to our City’s economic recovery and disproportionately hurts working families and recent college graduates, who are often burdened with student debt. I will keep fighting in the City Council to make sure all New Yorkers have a fair and equal opportunity to succeed.”
“The practice of employment credit checks reinforces inequality and perpetuates poverty and racial discrimination,” said Councilmember Julissa Ferreras. “With this common sense legislation, we can finally put an end to this unfair practice. Credit checks are not accurate reflections of a prospective employee’s character or work ethic and they may not always be accurate reflections of personal finances, especially when you consider the prevalence of identity theft, predatory loans, and consumer fraud. Job seekers should be evaluated fairly based upon their work experience and job skills, not personal spending habits. I applaud Council Member Lander for leading the fight to ensure that all New Yorkers have adequate protection against this type of discrimination. I am proud to support this bill.”
Onieka O’Kieffe is a member of the Retail Action Project, an initiative of the Retail, Wholesale and Department Store Union. She was denied a retail position after a prospective employer checked her credit report. “My managers have always trusted me and I have never been fired. I incurred debt from my student loans because I was trying to advance my career. My debt has nothing to do with how I do my job.”
“It’s outrageous to think that New York students could be shut out of the very jobs they’re studying to qualify for because of the challenges they face keeping up with college loans and other bills,” said Amy Traub, Senior Policy Analyst at Dēmos. “It’s time for New York City to ban consideration of personal credit information in hiring and get rid of this barrier to employment once and for all.”
Using a large map of city council districts, students and coalition members staged a “call-in” to Council Members, and encouraged their fellow students to join them by calling their council members to urge swift passage of Intro. 261.
