MINNEAPOLIS — The International Association of Commercial Collectors, Inc. (IACC) Board of Directors is pleased to announce the 10th anniversary of its IACC Agency Certification Program. Offering members another step in quality assurance, obtaining this objective, third-party designation demonstrates an agency’s commitment to compliance and the highest standard of operations.

In August 2000, after three years of discussion with members and careful development, the IACC Board of Directors introduced the program, offering IACC members the chance to demonstrate their devotion to quality collection services.

“Far from being a simple marketing tool, a designation in name only, certification offers creditors substantive evidence of an agency’s compliance with the highest standards in the industry," said Louis Figueroa, president of Credit Decisions International, Inc. in Elk Grove Village, Ill., IACC member and one of the first agencies to be certified through the program.

While meeting the membership requirements for IACC indicates that an agency is self-committed to quality, taking the additional step of attaining IACC certification indicates that a third-party has reviewed the agency’s operations and that the agency meets or exceeds the program’s standard operational guidelines.

Another important aspect of the IACC Agency Certification Program is that it is ongoing. Members must provide documentation on an annual basis supporting the program’s various requirements to maintain their certified status.

“There was value from both the standpoint of marketing and internal operations. It was a no brainer for us, we knew the value was there and realized that value as soon as we could,” said Tom Haag, president of State Collection Service, Inc. in Madison, Wis., IACC member and also one of the first to receive the certification.

In celebration of this 10-year mark, IACC would like to recognize all of the currently certified agencies who have worked hard to reach and maintain this designation. Congratulations to the following:

The Bessenbacher Co.
Kansas City, Mo.
www.bessenbacher.com

Cedar Financial
Calabasas, Calif.
www.cedarfinancial.com

Commercial Collection Corp. of NY
Tonawanda, N.Y.
http://www.commercialcollection.com

Credit Decisions International Ltd.
Elk Grove Village, Ill.
www.creditdecisions.com

Johnson, Morgan & White
Boca Raton, Fla.
www.jmandw.com

Joseph, Mann & Creed
Shaker Heights, Ohio
www.jmcbiz.com

McCarthy, Burgess & Wolff
Cleveland
www.mbandw.com

Priority Credit Recovery Inc.
Edmonton, AB, Canada
www.prioritycredit.ca

PRO Consulting Services, Inc.
Houston
www.proconsrv.com

Randall & Richards, Inc.
Tucson, Ariz.
www.rrcollections.com

Ross, Stuart & Dawson, Inc.
Auburn Hills, Mich.
www.rsdcollects.com

State Collection Service, Inc.
Madison, Wisc.
www.statecollectionservice.com

Windham Professionals, Inc.
Salem, N.H.
www.windhampros.com 

To find how your agency can work toward this designation, e-mail iacc@commercialcollector.com or call +1(952) 925-0760

The average consumer carried $7,752 in credit card debt in July.

If the average Joe or Jane paid only the minimum payment of 3% on a credit card with an average interest rate of 14%, it would take 15 years and 11 months to get rid of that debt. Plus, they will also be paying $4,751.80 extra in interest.

Maybe Joe and Jane should visit ReadyForZero.

ReadyForZero website just launched today and promises to guide consumers out of credit card debt with a realistic plan based on a consumer’s real debt and credit cards.

How It Works

Though the site is still operating in invitation-only beta, here’s their basic process to debt freedom:

You sign up for free and input your credit card information so ReadyForZero can import and access details such as how much debt you have, what kind of credit cards, and more. Though handing over private financial information may make some consumers skittish, ReadyForZero assures that they have top-notch security and will never charge your card. ReadyForZero then creates a payment plan particular to your credit cards, minimum payments, and salary, and determines the most effective plan of how to pay down your debt. A key aspect of the site is that it tracks your progress and sends integrated reminders, which helps motivate consumers likely to fall off the bandwagon. You receive account updates and payment reminders to keep you moving on your path to zero debt.

What Makes It Different

ReadyForZero strikes a happy medium as a free site that informs while emphasizing action with concrete tools and a realistic plan to cut down debt in measurable ways. It’s much more than an educational website or blog, which may inform you yet lack serious, hands-on tools to turn financial lessons into action. It’s free and will not damage your credit, compared to debt negotiation and debt settlement services out there. Plus, it takes some guesswork out of figuring out debt payments, a huge plus for the average Joe and Jane who have trouble paying debt beyond minimum payments.

Ready for ReadyForZero?

Overall, ReadyForZero looks like a personal finance tool that can be truly helpful and effective for consumers to control their debt. Once it is off beta, we’ll check out how the site actually runs and functions and report back. The only question is whether the average consumer will latch on and stick to a tool as financially healthy as this; are they ready for zero debt?

This won’t exactly incite your flight attendant to deploy the emergency exit and slide to the tarmac, but next time you’re flying, pull out a travel mug when they offer coffee, tea or other drinkage. Why? Because that’s what you will do if you aspire to attain the status of green java guerrilla like Sarah Wilson-Jones.

“They looked at me kind of funny, but think of all of the cups they go through on one flight and for the hundreds of travelers every day,” Sarah says, while taking a break in one of her five Phoenix Coffee shops throughout Cleveland, Ohio.

When it comes to sustainable and affordable coffee and tea drinking, she and her husband and master roaster, Carl Jones, know the drill.

To enlist in this merry band of smart coffee drinkers, you must first arm yourself with a travel mug. And you must do whatever it takes to remember to carry it at all times. By doing so, you'll do your part to cut back on waste. Think about it. One cup a day times countless days and years. And that’s just you.

Sarah’s stores – and hopefully the espresso slingers near you – offer a $.10 discount for mug bearers, and a $.10 upcharge for the mug-barren who request disposable, compostable cups. She also offers a $.25 discount for those who bring their own canister or reusable bag when purchasing their coffee beans or tea leaves.

Even if your favorite coffee haunt doesn’t offer discounts for being eco-friendly, packing a travel mug is still a smart practice. And don’t be shy, soldier. Start bugging your baristas to implement some of these savings and practices, too.

Now that you’ve signed up, here are a few more tactics for courageous coffee commandos.  After all, earth-changing times call for aggressive coffee and tea drinking strategies:

● Use coffee or tea grounds as compost on your plants.

● Buy premium teas, especially green and white teas that can be infused twice or more before you do what? Right. Use them for compost.

● Make a giant ‘green impact’ by buying locally roasted Fair Trade or Rainforest Alliance coffee.

● Strongly encourage your shop to use washable ceramic mugs and glasses, if they don’t already. “They have a sink, don’t they?” Sarah quips.

● Just as strongly encourage your cappuccino carriers to make real spoons available for stirring to eliminate disposable stirrers. Sarah says she’s heard of one shop using uncooked linguine noodles as stirrers, which are at least compostable. And interesting. Washable spoons, however, save waste.

● If you can employ burlap bags for mulching cloth, art, kids crafts, three-legged races or other purposes, inquire if they keep the coffee bags at their roastery. Phoenix even gives the chaff that gets separated in the roasting process to a local farmer for compost.

Photo credit: Nevit Dilmen

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Christopher Johnston has written for American Theatre, Cleveland, Continental, Crain’s Cleveland Business, Editor & Publisher, The Plain Dealer, Progressive Architecture and Urban Design, and Scientific American, among other publications. He is currently writing a biography of Frederick C. Crawford, founding chairman of TRW Inc. As an avocation, he is a playwright and director, and this December, his play APORKALYPSE! will premier at convergence-continuum theatre in Cleveland.

Kaulkin Media, through its flagship Web publication insideARM.com, announces the launch of a special editorial series on consumer complaints against accounts receivable management firms.

The Complaints Issue will be the first in a series of topic-focused content offerings dubbed “The Big Issues.” The series will feature articles, opinion pieces, infographics, videos, training & educational materials, and other types of informative content. Over the coming weeks, insideARM.com readers will learn more than they ever thought they could know about debt collection complaints.

“Our original reporting and coverage of ARM industry news changes every day and we recognize the importance of breaking news content to our audience,” said Michael Klozotsky, Managing Editor of insideARM.com.  “But we also perceived a lack of any in-depth, continuing content being produced on topics of real consequence to the credit and debt collection industry.”

Complaints against ARM firms and professionals are the stick pins used to skewer the debt collection industry like some exotic butterfly. Constantly referenced in the mainstream media, complaints against collectors have steadily increased over the past few years, according to data released annually by the Federal Trade Commission. But, as always, there is much more to the story, and all one has to do is dig a little deeper to reveal some misconstrued facts.

For example, the category of complaints that increased at the highest rate between 2007 and 2009 involves debt collectors failing to properly identify themselves on phone calls or written correspondence. Dubbed a “mini-Miranda” violation, failure to identify accounted for more than 21,000 complaints in 2009, up a staggering 1,612.5 percent from just 1,200 in 2007.  While mini-Miranda may still be violation of FDCPA, it’s certainly a technical violation.  But rather than investigate the actual harm done to consumers, most regulators, critics, and cranks choose to zero in on the percentage change rather than its real effects.

As a practical extension of insideARM.com’s mission to shift the public conversation about the ARM industry, The Complaints Issue will explore the subject of debt collection complaints beyond the standard headlines and conventional wisdom.  It will approach the topic from a wide range of insightful perspectives across the ARM industry.

The Big Issues format also speaks to insideARM.com’s dedication to bring the most credible news and information to the credit and debt collection industry.  And The Complaints Issue is another key ingredient in Kaulkin Media’s effort to lay out its goals in public.

“Almost any college student with a laptop, internet connection, and a rudimentary understanding of Google alerts could profess to run a collection industry news site/clipping service,” said Klozotsky.  “insideARM.com’s standards are higher, and our experienced team works hard to produce intelligent, creative, and credibly sourced information vital to ARM business owners and front line employees alike.”  Klozotsky continued, “The Complaints Issue aims to be an innovative departure from anything currently being published in the ARM industry.”

insideARM.com’s loyal readers will still get the best and most timely news on a daily basis through The ARM Insider email newsletter. But now there will be more substance on the topic of complaints.

For more information about The Complaints Issue visit http://www.insidearm.com/thecomplaintsissue/. 

To complain about insideARM.com please contact Michael Klozotsky, Managing Editor.

Nonfarm payroll employment changed little (-54,000) in August, and the unemployment rate was about unchanged at 9.6 percent, the U.S. Bureau of Labor Statistics reported today. Government employment fell, as 114,000 temporary workers hired for the decennial census completed their work. Private-sector payroll employment continued to trend up modestly (+67,000).

Household Survey Data

The number of unemployed persons (14.9 million) and the unemployment rate (9.6 percent) were little changed in August. From May through August, the jobless rate remained in the range of 9.5 to 9.7 percent.

Among the major worker groups, the unemployment rate for adult men (9.8 percent), adult women (8.0 percent), teenagers (26.3 percent), whites (8.7 percent), blacks (16.3 percent), and Hispanics (12.0 percent) showed little change in August. The jobless rate for Asians was 7.2 percent, not seasonally adjusted.

The number of long-term unemployed (those jobless for 27 weeks and over) declined by 323,000 over the month to 6.2 million. In August, 42.0 percent of unemployed persons had been jobless for 27 weeks or more.

In August, the civilian labor force participation rate (64.7 percent) and the employment-population ratio (58.5 percent) were essentially unchanged.

The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) increased by 331,000 over the month to 8.9 million. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.

About 2.4 million persons were marginally attached to the labor force in August, little changed from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Among the marginally attached, there were 1.1 million discouraged workers in August, an increase of 352,000 from a year earlier. (The data are not seasonally adjusted.) Discouraged workers are persons not currently looking for work because they believe no jobs are available for them. The remaining 1.3 million persons marginally attached to the labor force had not searched for work in the 4 weeks preceding the survey for reasons such as school attendance or family responsibilities.

Establishment Survey Data

Total nonfarm payroll employment was little changed (-54,000) in August. Government employment fell by 121,000, reflecting the departure of 114,000 temporary Census 2010 workers from federal government payrolls. Total private employment continued to trend up modestly over the month (+67,000). Since its most recent low in December 2009, private-sector employment has risen by 763,000.

Employment in health care increased by 28,000 in August, with the largest gains occurring in ambulatory health care services (+17,000) and hospitals (+9,000). Thus far in 2010, the health care industry has added an average of 20,000 jobs per month, about in line with the average monthly job growth in 2009.

Mining employment rose by 8,000 in August. Since a recent low in October 2009, employment in the industry has increased by 72,000. Support activities for mining has accounted for about three-fourths of the gain.

Manufacturing employment declined by 27,000 over the month. A decline in motor vehicles and parts (-22,000) offset a gain of similar magnitude in July as the industry departed somewhat from its usual layoff and recall pattern for annual retooling.

Within professional and business services, employment in temporary help services was up by 17,000. This industry has added 392,000 jobs since a recent employment low in September 2009.

Construction employment was up (+19,000) in August. This change partially reflected the return to payrolls of 10,000 workers who were on strike in July.

Employment in retail trade was about unchanged over the month. A job gain among motor vehicle and parts dealers (+8,000) was essentially offset by losses in building materials and garden supply stores (-6,000).

Employment in other private-sector industries, including wholesale trade, transportation and warehousing, information, financial activities, and leisure and hospitality, showed little change in August.

Over the month, government employment fell by 121,000, largely reflecting the loss of 114,000 temporary workers hired for Census 2010. The number of temporary Census 2010 workers peaked in May at 564,000 but has declined to 82,000 in August.

The average workweek for all employees on private nonfarm payrolls was unchanged over the month at 34.2 hours. The manufacturing workweek for all employees increased by 0.1 hour to 40.2 hours, and factory overtime was up by 0.1 hour. The average workweek for production and nonsupervisory employees on private nonfarm payrolls increased by 0.1 hour to 33.5 hours.

Average hourly earnings of all employees on private nonfarm payrolls increased by 6 cents, or 0.3 percent, to $22.66 in August. Over the past 12 months, average hourly earnings have increased by 1.7 percent. In August, average hourly earnings of private-sector production and nonsupervisory employees increased by 3 cents, or 0.2 percent, to $19.08.

The change in total nonfarm payroll employment for June was revised from -221,000 to -175,000, and the change for July was revised from -131,000 to -54,000.

Kennesaw, GA and Tampa, FL — MicroBilt Corporation, a leader in risk management information for small and medium-sized businesses, and CL Verify LLC, the industry leading real time credit bureau, announce today that the two companies will combine under the name MicroBilt Corporation.

The merger combines two growing entrepreneurial companies with complementary businesses and a shared spirit for innovation. Both companies are leaders in providing data solutions for verification, credit and collections, with each company serving different market segments. A combination of MicroBilt and CL Verify will result in significant growth opportunities from leveraging the companies’ combined data sets and analytic technologies.

Industry veteran, William "Wink" Price, will lead MicroBilt as its new CEO. Mr. Price is the former CEO of CBCInnovis, a leading provider of risk management solutions to customers in the business, government and not-for-profit sectors, which Mr. Price led for over 25 years. Mr. Price will join the Board of Directors and make an investment in MicroBilt Corporation.

“I am very excited to lead this combination of MicroBilt and CL Verify” said Price, “Both companies are true innovators in the business of risk management. Their respective data sets and tools are a great complement to each other and with little overlap in their respective businesses, there will be an immediate opportunity to achieve significant new growth.”

This merger follows MicroBilt’s acquisition of Payment Reporting Builds Credit (PRBC) and relaunch of the PRBC® Consumer Report with FICO® Expansion® Score early this year. “The need for new and alternative data sets for verification, credit, collections and screening is expanding in every segment of the market.” said Price, “MicroBilt and CL Verify have built great businesses that will provide the foundation for a great new company.”

About MicroBilt
MicroBilt is the leader in serving small businesses with data and tools that they need to manage business risk and make informed lending and hiring decisions. MicroBilt offers the small business owner simple, cost-effective solutions for fraud prevention, consumer financing, debt collection, and background screening. With its PRBC® Consumer Report with the FICO® Expansion® Score, MicroBilt is the leading provider of alternative credit data to businesses that want to offer credit and other financial services to the over 100 million underserved consumers in the United States. For more information, visit www.MicroBilt.com.

About CL Verify LLC
CL Verify™ LLC is the leading FCRA compliant real time credit bureau providing a fully integrated suite of decision support solutions. The company’s unique and proprietary consumer data provides clients with the most predictive resources for identifying, managing and optimizing the entire consumer credit life cycle. CL Verify provides access to over 3 billion debit account records, nearly 30 billion pieces of demographic and public record data and nearly 100 million unique consumer records to prevent identity fraud, evaluate credit risk and retain customer relationships. For more information, visit www.clverify.com.

Carrollton, TX — The CMI Group, an industry leader in first and third party collections headquartered in Carrollton, TX, recently completed its SAS 70 Type II audit.

In receiving the coveted “non-qualified” report, an independent auditor has verified that The CMI Group (www.thecmigroup.com) has proven controls and effective business practices relative to data security, financial transaction processing, vendor management, employee relations and operational excellence.

Tom Stockton, CEO of The CMI Group, said, “Since its inception CMI has strived to provide the most innovative services to our clients. We have also been committed to assuring our clients that they can trust our processes as well as the security of the data they supply to us. That’s why I am proud to add SAS 70 Type II certification to our PPMS certification as a means of demonstrating our continued commitment to excellence.”

The CMI Group utilized the Hampton Pryor Group, LLC(www.hamptonpryor.org) to prepare them for the audit. Carrie Finney, CFO of The CMI Group, said, “The Hampton Pryor Group has experience working with accounts receivable management companies, so their knowledge of the industry was helpful throughout the process.”

About The CMI Group
Celebrating 25 years in the accounts receivables management industry, The CMI Group is a leader in first and third part collections services. With operations centers in Carrollton, TX and Tempe, AZ, The CMI Group is proud to include some of the top utilities, medical facilities, and financial services providers on its impressive roster of satisfied clients. Their professional and innovative approach to the age-old problem of debt recovery results is exceptional operational efficiency and superior returns for clients.

A Wired post reported on so-called “credit hacks” that clever consumers were using to legally game the system and manipulate credit reports. These tricks take advantage of the rules and formalized process of the credit reporting system to let hackers manipulate their credit. One such hack dealt with using multiple applications to gain a ton of credit.

One hacker shared that he would generate a massive amount of quick credit by timing simultaneous loan applications from different lenders. Hackers can use this loophole to get dozens of credit cards, have multiple mortgages for a single property, take advantage of special offers to horde cash incentives, or get a large cash loan with zero interest.

This loophole exists, allowing you to apply for several applications and generate multiple hard inquiries within a short span of time. It could take several days for the inquiry to appear on a credit report, so banks don’t notice the parallel applications.

But, this trick won’t ultimately help consumers in the long run:

1. While you could get multiple cards, your credit score will still plummet when all the hard credit inquiries appear on your credit report.
2. If you used this trick to score special offers on credit cards but didn’t need the additional credit, then you are stuck with the cards after you avail of your incentives. If you leave a bunch of cards idle, your issuer may close your cards.
3. An excessive amount of credit may lead you down a road of debt. Using too much available credit will also spike your credit utilization, which will lower your credit score.

Of course, we don’t recommend filing multiple applications because you could potentially, and irrevocably, damage your credit score and be overwhelmed with credit. “Hacking” your way to accessing more credit momentarily may be unnecessary. If you are in need of more credit, a more viable option is to ask and negotiate with your credit card issuer to extend your credit limit. Or pay down your debt to make more credit available to you in the future. That way, you can have a healthy amount of credit — without causing any trouble.

Bottomline: There are credit hacks out there to manipulate your credit report…. but don’t do it! They won’t help your credit score in the long run–only responsible habits and consistency over time makes for healthy credit

These days, saving a buck or two is becoming increasingly important, but going out to eat doesn't have to break the bank. With the economy in limbo, people from all walks of life find themselves in need of bargains now more than ever – and what’s the best kind of bargain? A FREE one! Don’t get me wrong, I'll always clip a few-bucks-off-a-meal coupon, but I'm always on the lookout for the free goods, too.

Here are a few ways to add deliciousness to your stomach without subtracting money from your wallet:

BOGO – Next to “ESPN,” “BOGO” is the most important acronym known to the human race. BOGO of course stands for “Buy One, Get One,” with the latter typically offered at no additional cost to you, the consumer. Granted your meal won’t be entirely free, but nothing impresses a hot date like ordering them something of “equal or lesser value.” In all seriousness, before you go out to eat, always search the restaurant web site or the Internet for these valuable offers.

Happy Birthday – It’s your special day, so why not celebrate it in a fun and frugal way? Simply sign up at some of your favorite restaurants’ web sites. You’ll get special members-only deals all year long to tide you over until you get to the grand prize: The Birthday Coupon. Places like Coldstone Creamery (free ice cream) and Red Robin (free burger) are among the many establishments out there that can help make getting older a little easier … by taking it one free bite at a time.

Kids Eat Free – It’s tough to imagine anything more appealing than having your kids quietly color their paper placemats, leaving the grown-ups to chat without being interrupted. What's even better: when the hostess tells you “kids eat free!” Kids may have little tummies, but more often than not the price tag for kids’ meals is more costly than desired. Check out sites like www.kidsmealdeals.com and www.mykidseatfree.com for an easy way to browse local listings. Restaurants are typically packed on the weekends, so many local establishments will offer a Kids Eat Free promotion during the week to draw in more business. I should know: it's why I hit up Backyard Burger every Tuesday.

Next time you head out for dinner, try the tips mentioned above. It gives new meaning to the phrase “the best things in life are free” – and if you ask my 6 year old daughter, that definitely includes the free mac and cheese on the kids’ menu.

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Ryan Zimmerman – Credit.com staff member and official Deals, Steals and Freebies Contributor, Ryan shares his unique insight and tips on saving money by finding the best deals and freebies on everything from groceries to video games. He may look funny, but he's serious about saving dough!

People may have valid reasons for not being able to pay debt.  Indifference or refusal to show a good faith effort to establish a payment plan or resolve the issue is not one of them and can cost you a job – at least with the U.S. Department of Defense and its contractors.

A recent analysis by insideARM.com of cases before the DoD’s office that determines which Americans get access to classified information found that delinquent consumer debt is the leading cause for security clearance denials.  Of the 107 cases adjudicated by the Defense Office of Hearings and Appeals (DOHA) in July, 53 involved financial concerns.   Of those 53 cases, 36 were denied security clearance for the job.

The applicants appearing before the DOHA administrative judges are seeking jobs that would put them in contact with classified information, specifically at private companies contracted to do work for the DoD. The agency also conducts similar hearings for 20 other federal agencies and departments and settles claims for military personal and DoD civilian employees, as well.

Cases are brought to DOHA when an immediate decision cannot be reached on the status of an application for access to classified information, thus necessitating a hearing. DOHA has adjudicated some 950 cases in 2010.

Some of the security clearance denials by the DOHA seem obvious.  For example, people who have defaulted on federal student loans or are in debt to the Internal Revenue Service with no plan in place to pay back the loan or taxes were denied clearance.  Taxpayer dollars fund student loans and federal, state, and local government agencies and governments tend not to employ or retain workers who owe taxpayers. 

But failure to address private-sector consumer debt doesn’t sit well with the DOHA either. A 39-year-old employee of a federal contractor learned that fact when she was denied security clearance because evidence revealed a history of financial problems and about $32,000 in unpaid delinquent debts, despite being employed continuously since at least 1999.

The DOHA judge adjudicating the case noted, “She did not present any documentary evidence of a good-faith effort to repay or otherwise resolve her indebtedness. There is insufficient evidence to explain, extenuate, or mitigate the security concerns stemming from her history of financial problems.”

Consumer credit checks are becoming a routine part of the job screening process more often with private employers, too.

Robert Pickell, senior vice president of customer solutions for employment screening firm HireRight, Inc., said 32 percent of the respondents to its 2010 benchmarking survey indicated that they use check credits as part of their employment screening process.  In a 2010 report on employment background checks by the Society for Human Resources Management, at least 50 percent of the respondents who conduct credit checks said they look at credit records as far back as seven years.  And 64 percent of those SHRM respondents said if a credit check revealed a current outstanding judgment such as a lawsuit, it would affect their decision to withhold or withdraw the job offer.  Forty-nine percent said accounts in debt collection would affect their decision to withhold or withdraw the job offer.

Human resource experts said employers do credit checks to reduce or prevent theft, embezzlement or other criminal activity.  In the case of the U.S. government, officials want to be sure an employee with access to classified information won’t be likely to divulge that information for a quick pay day. But Pickell said credit checks are not relevant to all jobs.

“If you’re hiring someone in the accounting department, their credit background is job related.  But if you’re hiring someone to work on a production line it isn’t relevant to the job and an employer probably should not be looking at it,” Pickell said.

Many state lawmakers agree.  The use of credit history reports for employment is allowed in most states. But Hawaii, Washington, Oregon and Illinois, have passed legislation since 2007 restricting how credit history investigations are used for employment purchases. And 20 states, plus the District of Columbia, introduced similar legislations this year, said Heather Morton, a legislative analyst with the National Conference of State Legislatures.

Morton said state lawmakers are trying to balance employers’ needs to learn relevant information about a job applicant that may affect their business with consumers’ need to find employment and maintain financial privacy. But the issue is confusing and there are few resources for consumers that adequately address the negative impact of carrying large consumer debt burdens.

ACA International Spokesman Mark Schiffman told insideARM.com that the leading trade association for the accounts receivable management industry will step up its efforts this fall to make consumers more aware of its website, AskDoctorDebt.com. ACA is positioning the site as a tool to help consumers find answers to their questions about debt. While credit history may not factor into the application process for most job seekers, it may often play a role when seeking credit and buying or renting a home, Schiffman noted.

“We are going to be more activity publicizing (AskDoctorDebt.com) through (mainstream) media, trade media and through our members, encouraging them to use the website in their business and when talking with clients. Our goal is to encourage more folks to use it,” Schiffman said.

Even if consumers put forth a good faith effort to clear their debts, the repercussions can linger, with most debts staying on credit reports for seven years.

The DOHA also appears to have little sympathy for victims of circumstance who fail to act to clear their name or remove the debt. One applicant alleged that her boyfriend charged $93,000 in debt on her credit card without her knowledge. He later died, leaving her liable for the bill. Though her ongoing payments towards a student loan showed a good faith effort in meeting some obligations, she was denied clearance for the job.  The judge said she had income after expenses and she provided no evidence that she had established a payment plan or taken any concrete plan to resolve her debts.

But the DOHA has shown a tendency to clear applicants who have wiped out or restructured their debt through bankruptcy, provided the agency was satisfied that the applicant had since demonstrated better financial judgment.  However, a 35-year-old employee of a federal contractor who, along with his wife, played the real estate market and sought relief through Chapter 7 bankruptcy had not showed a improved pattern of credit usage.  The judge noted that the bankruptcy relief was granted in November 2009, but said the evidence showed the applicant has a history of financial problems and did not provide “full, frank and candid answers to questions about his financial record during the security process.”

“Given the recency of the bankruptcy case and the surrounding circumstances, it is too soon to tell if applicant’s financial problems were purely situational, and it is too soon to determine if applicant is now conducting his affairs in a financially responsible manner,” the judge said.

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