Senate votes to limit credit checks

OLYMPIA – Many Americans go through difficult financial times, such as a job layoff or divorce. Unfortunately, when those tough times result in a bad credit rating, the ramifications can last a lifetime. And when someone tries to improve their life and pull themselves out of debt, their prior problems can come back to haunt them.

Under current law, an employer may choose not to hire someone based on that credit rating. But that could soon change. The Senate today approved legislation to limit a consumer credit report request on a job applicant to when:

• The request is substantially job related; and
• The employer has disclosed to the applicant in writing the reasons for checking the applicant's credit report.

“We should encourage self-improvement, not discourage opportunity,” said Sen. Steve Hobbs, D-Lake Stevens. “Credit checks should be limited to a legitimate need to know. They shouldn’t prevent you from trying to better your life.”

Senate Bill 5827, sponsored by Hobbs, now goes to the House of Representatives for further consideration. The legislative session is scheduled to conclude on April 22.

Return to Sen. Hobbs' home page