US Senator Elizabeth Warren is introducing legislation that would ban what she calls the widespread use of personal credit histories by employers who are looking to hire workers.
Warren, Democrat of Massachusetts, said the practice unfairly targets women, minorities, senior citizens, students, and others with fewer resources to bounce back financially after a personal setback such as an illness or a divorce.
Low credit ratings can follow an individual for years.
Warren told reporters there’s little evidence of any correlation between a poor credit rating and job performance.
She called the proposal a matter of basic fairness, arguing that wealthier individuals can suffer a personal setback without having it threatening their employment prospects.
Warren’s bill is cosponsored by fellow Democratic senators Edward Markey of Massachusetts, Patrick Leahy of Vermont, Sherrod Brown of Ohio, Jeanne Shaheen of New Hampshire, Richard Blumenthal of Connecticut, and Sheldon Whitehouse of Rhode Island.