Unfair credit – Should we thank regulators for the new rules banning "unfair" credit card practices?
Should we thank regulators for the new rules banning “unfair” credit card practices?
http://articles.moneycentral.msn.com/Ban…
Will these new regulations usher in an era of “fair” crdit card practices with increased “consumer protection”, or will it simply eliminate the access to credit cards for many riskier borrowers?
Both the government and supporters of this legislation should study the Law of Unintended Consequences. Specifically, they should study the effects of the ATM Fee ban in Santa Monica, when in response, banks were suddenly unwilling to process ATM transactions for non-customers.
When will people learn that seemingly “unfair” practices are almost always backed by economic realities, and that legislation can ban the practice, but it can't ban economic reality?
The unfairness of life constantly amazes me. Today I was reading an article that appeared in a major newspaper. The article contained a stunning figure: Fully 43 percent of employers use credit reports as part of the vetting process for new hires.
I can understand the logic for this to a certain extent. In some cases, the employer may need for the employee to take expenses out of their own accounts and reimburse those employees later. An employee with bad credit might run into problems on a business trip where their card gets declined. In other cases, it just might not be prudent to hire someone with a history of not paying their bills. I get all that.
What I don’t understand is how employers can continue this practice in today’s economic climate. Surely there are plenty of great potential employees out there whose credit ratings have slipped due to circumstances beyond their control. Maybe you are among them. Maybe it wasn’t your fault that you could not make your bills on time when you didn’t have a job.
It seems to me that the money and time employers spend poring over people’s “private” financial lives could be better spent — oh, I don’t know — talking to the potential employees or maybe even giving their former supervisors a call. It just strikes me as wrong that this number in a computer is so important.
You know what the worst part of it is? Fully 25 percent of credit reports contain errors according to a recent study. Since we all have three credit reports, that means that one in every two people have an error in their credit report. In that case, it really is not your fault, and it seems totally unfair that someone could be prevented from making a living.
Another thing that happens is identity theft. Don’t even get me started on that one. Read some of my past articles at EzineArticles to get my take on that one. Someone’s credit rating can be absolutely ruined by these scumballs, and a ruined credit rating can cost them job opportunities.
It doesn’t seem right, but that’s the world we live in.
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Be sure to get your credit reports and scores from all three credit bureaus if you have not done it recently. It is free to check once a year.
If you want more identity theft information, you know what to do.
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