Wells Fargo hired Harris Interactive Inc. (HPOL) to conduct a nationwide phone survey about retirement. During August and September 2011, they surveyed 1,500 consumers between 25 and 74 years old.  The responders’ household income or assets ranged from $25,000 to $100,000. They planned to work longer to have enough money in retirement.

Highlights

76 percent of responders said it is more important to reach a specific dollar amount before retiring, while 20 percent said it is more important to retire at a certain age regardless of savings. read more »

The Fair Credit Reporting Act (FCRA) allows employers to review credit reports with written approval from the applicant. This has become a growing area of concern because of the economic conditions. Many have been unemployed for longer periods of time than in any time in history, which has impacted their ability to pay their debts.

Seven states passed laws which prohibit employers from reviewing credit reports, except for certain types of positions based on responsibility. These states are California, Connecticut, Hawaii, Illinois, Maryland, Oregon and Washington. read more »

In early October 2011, California’s Governor Brown, signed California Assembly Bill Number 22 (AB 22) which limits most employers from obtaining consumer credit reports for employment purposes.  The exceptions are certain financial institutions, law enforcement positions, and those having access to proprietary information or large amounts of money.

If a credit check is conducted, the candidate has to be informed of this and can request a free copy of the report. If they are declined employment, because of their credit, they are to be informed of the reason. read more »

The housing market hasn’t recovered from the recession and CoreLogic tracts this market through its propriety databases. CoreLogic recently released a study of negative residential equity covering the second quarter of 2011.  CoreLogic provides consumer, financial and property information to businesses.

Negative equity exists if your mortgage balance is higher than the home’s value. This is usually because market value decreased or mortgage debt increased or a combination of both.

There are approximately 48.5 million residential properties with a mortgage in the U.S.; 10.9 million or 22.5 percent of mortgages had negative equity in second quarter of 2011, down from 22.7 percent in first quarter of 2011. An additional 2.4 million had less than five percent equity, which is considered “near-negative equity”. The combined group with negative and near-negative equity are called “below water”. The combined total of the “below water” group was 13.3 million or 27.5 percent. read more »

I’ve talked about employment background checks that are conducted by companies who provide criminal and credit checks and verify employment.  But, are you aware there is a company that conducts social medial background checks?  The company is Social Intelligence Corporation headquartered in Santa Barbara, California and has been in business since August 2010.

Social Intelligence uses a combination of automated and manual review to provide information from social media including Facebook, Twitter, Flickr, Youtube, LinkedIn, and individual blogs.  They do not use “spy” tactics such as becoming a friend on Facebook.  Employers define what information they want to be included, which is both negative and positive.  Negative examples are racist remarks or activities, sexually explicit photos or videos and illegal activity such as drug use.  Positive examples are charitable or volunteer efforts, participation in industry blogs, and external recognition. read more »

According to the Conference Board, the Confidence Index dropped to 60.8 in May 2011 from 66 in April 2011; it had previously risen in April.  The Confidence Index is the average of two indices: Present Situation and Expectations. Present Situation Index decreased to 39.3 from 40.2 and Expectations Index declined to 75.2 from 83.2. The base year for the Index is 1985 which would be equal to 100%.  The May cutoff date for this survey was May 18, 2011. read more »

What is involved in an employment background check? It really depends upon the position and the responsibilities. There are different requirements for handling money, working with children, government jobs, security clearance and job responsibility.

Why do companies conduct background checks?  Companies are responsible for their employees’ actions and want to keep the general public, employees and their customers safe. They want to ensure that their future employees meet their requirements and they didn’t lie on their application about education, past employers and criminal background.  As long as employers are liable for their employee’s actions, background checks will be a reality. read more »

You’re applying for a job and the prospective employer requests that you complete a form that gives them permission to obtain your credit history.  Can they do this?  Is it really legal to look at someone’s credit report before hiring them?

Yes, they can.  Employers can pull your credit reports because the Fair Credit Reporting Act (FCRA) gives them the right to do so. They can obtain a consumer record on you, which includes a credit report and other data as part of the background check. They must have your written permission to obtain a credit report. read more »

Credit reports contain a variety of liability information including loans, collections and public records.  But, there is also an incredible amount of highly sensitive personal information.  So, what personal information should you expect to see on your credit reports?  Before answering the question it’s best to summarize all of the information in a credit report.

A credit report can be segmented into four distinct sections: personal information, inquiries, trade (or account), and public records.  We’ll focus only on the personal information.  And, you’ll be surprised what information is included and maybe more surprised that there isn’t as much detail as you would come to expect from a credit report.  Follow me…

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New settlement documents have been mailed in the White, et at v Experian Information Solutions class action case.  The class action, which also includes TransUnion and Equifax as defendants, was filed over 4 years ago in Federal Court in the Central District of California.  The plaintiffs, all whom filed a chapter 7 bankruptcy, allege that their credit files still showed debts that predated the filing date of their chapter 7.  These debts, if statutorily discharge-able, should be shown as having a $0 balance since they were canceled by the bankruptcy.

Settlement was reached in the case in 2009 and award documentation was sent to the members of the class, which numbered in the millions.  If you submitted a claim for an award you recently (or will soon) receive another document asking for additional information about your claim.

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