Are credit reports still viable gauge of candidates' character?

It might be time for employers to scuttle the practice of running credit checks on prospective employees.
As a matter of  fact, employers across the U.S. may soon not have any choice in the matter. Twenty-five states are considering legislation regulating the use of credit reports in hiring, according to a USA TODAY story.
Most of the proposals would ban the use of credit checks except in very specific circumstances — like when someone’s applying for job that involves directly handling money.
You’ll recall that last fall, the EEOC held a public hearing on the growing use of credit histories as selection criteria in employment.
At that hearing, one employee advocate expressed concerns that the use of credit histories “create[s] a fundamental ‘Catch-22’ for job applicants,  especially during this period of high unemployment and high foreclosures, both of which have a negative impact on credit.”
Business leaders testified that credit checks are permissible by law, limited in scope, and are useful for predicting an applicant’s likelihood of success in certain circumstances.
But it seems that there’s a growing consensus that given recent economic conditions, a person’s credit score might not be an accurate gauge of his or her character and sense of responsibility.
Adding the feds’ interest in the practice to the growing trend of action on the state level, it looks like this common practice might well be restricted — if not banned altogether.
We’ll keep you posted.