Credit Checks for Residency

[razorback58]

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In filing out forms, my hospital wants to run a credit check. Any thoughts on this? Is this common other places? Anyone have any trouble with this?

 

[Bertelman]

Mine didn't. Can't understand what they hope to gain from that. I wouldn't worry too much about it, because I don't think they can void your contract or anything. I wonder if it has something to do with state licensing, i.e. previous bankruptcy. Seems kind of nosy for a hospital.

 

[deleted87716]

In filing out forms, my hospital wants to run a credit check. Any thoughts on this?

Here's the likely explanation: http://www.associatedcontent.com/article/184491/why_prospective_employers_might_run.html

 

[drtx]

After recently going over my credit report I discovered my hospital had checked my credit the past couple of years....I had no idea this was going on. It's creepy.

 

[Dr. Will]

I'm not too happy about this either. I have damaged credit b/c of my college years and been trying hard to improve it. While I doubt this will cause me to lose my residency spot, I'm not happy about the fact they'll check into it either.

 

[razorback58]

I think it is called BIG BROTHER! I believe this is an invasion of privacy.

I read the link that someone suggested as well as other websites. To deny a person a job based on credit - well how do they expect a person to do better without a job. People have credit problems for many reasons, illness, divorce, loss of job etc.....and not just because they are deadbeats.

I also read that many state licensing boards can and will pull or deny a license if a person is behind on child support too. You can also be denied a state license because you are in default or behind on federal student loans.


Does anyone know of anyone that has been denied a residency due to a credit check? I think the ACLU should get a hold of this one.

 

[dutchman]

I understand if some regular employer wants to do credit checks or whatever checks for that matter, but residency programs are beneficiaries of modern day slavery. Just like Mcdonalds, for the 7.50/hr residency programs pay, they should be happy with bad credit mofos with a few felonies.

 

[Faebinder]

You are freaking out over a standard procedure. I never ever heard of anyone being denied residency for their credit report. If so then we would see credit score requirements on all residency applicants and ERAS.

 

[Trepp]

You are freaking out over a standard procedure. I never ever heard of anyone being denied residency for their credit report. If so then we would see credit score requirements on all residency applicants and ERAS.

If it's not to deny someone a residency spot, then what in the world is it for? There is no benefit to it, and it can only hurt a person. I can't imagine that they would see someone's awful credit and decide to pay them more, because obviously they need it!

 

[radonc]

You are freaking out over a standard procedure. I never ever heard of anyone being denied residency for their credit report. If so then we would see credit score requirements on all residency applicants and ERAS.

the fact that they may have done a credit check without your consent is the issue here...

 

[Dr. Will]

the fact that they may have done a credit check without your consent is the issue here...

At least for my hospital, it's part of the background check you have to sign a consent for. I'm sure not signing that form, thereby not allowing them to run all their background checks wouldn't be looked upon too highly. The background/criminal check I understand. The credit check, not so sure about.

 

[meehawl]

Can't understand what they hope to gain from that.

Agreed. The worst is when employers/insurers etc obtain credit scores and use them for non-credit purposes. Fair Isaac (inventors of the FICO) spend quite a lot of effort every year calibrating FICO scores so they correspond (within a few percent) to the probability of default within specified month ranges for "buckets" of revolving credit debt. That's all a FICO does, and it actually works quite well (considering the inherent crapness of the data) within its domain (and enables holders of said debt to sell parcels of scored debt as bonded collateral). It's when people start using scores outside of that domain that you run into problems. The current subprime explosion is one example - it now turns out that credit scores have basically no real correlation to the probability of default for subprime mortgage borrowers. It's astonishing that some companies lost literally billions basing a business model on correlations that never existed.

Anyway, if a company obtains your credit report/score without "permissible purpose" then it's an automatic $1,000 fine for them, awarded to you. That's one option to pursue. Look at:
§ 616. Civil liability for willful noncompliance [15 U.S.C. § 1681n]
http://www.ftc.gov/os/statutes/031224fcra.pdf

 

[Duckie24]

I'd check your contract and see if there's anything in there about them needing to do a credit check. If not, tell them to shove it. It may seem innocuous, but any credit check, no matter for what reason, has the negative effect of decreasing your credit score. I'm about to apply for a house mortgage, so I wouldn't want any BS credit checks like this to decrease my score.

 

[razorback58]

When we go into residency, we are basically slaves and they can do what ever they want to us. They did ask for my consent to run the credit check and background.

I checked into this inquiry online and it indicated that if an apartment complex, utilities etc... run credit checks then it shows up as an inquiry but is not counted toward your credit score. Credit card people do it all the time to see your credit score and make offers or increase your interest rate. The info told me that the only time it will count toward your score is when you actually apply for credit - a loan, house, car, credit cards etc....

Hope this helps and hope this is true.