Reprinted with permission of the Associated Press. 

ANNAPOLIS, Md.

It’s hard enough to find work in this economy. Now some people face another hurdle: Potential employers are holding their credit histories against them.

Sixty percent of employers recently surveyed by the Society for Human Resources Management said they run credit checks on at least some job applicants. That compares with 42 percent in a similar poll in 2006.

Employers say credit checks give them valuable information about an applicant’s honesty and sense of responsibility. But lawmakers in Missouri and at least 15 other states have proposed outlawing most credit checks, saying the practice traps people in debt because their past financial problems could prevent them from finding work.

Under federal law, a prospective employer must get written permission from an applicant to run a credit check, but consumer advocates say most applicants feel they are in no position to refuse.

Most of the bills proposed this year resemble laws in Hawaii and Washington that prevent employers from using credit reports when hiring for most positions.

The laws contain exceptions in cases where such information could be relevant to the job — for example, if the person is applying to work in a bank or an accounts-payable office.

On a national level, Rep. Steve Cohen, a Tennessee Democrat, introduced a similar bill last summer in the U.S. House, where it is still in committee.

More companies use credit checks, but only 13 percent perform them on all potential hires, according to the most recent survey by the Society for Human Resources Management. Mike Aitken, the group’s director of government affairs, said a blanket ban could remove a tool employers can use to help them make good hiring decisions.

Aitken cited a 2008 survey by the Association of Certified Fraud Examiners that found the two most common red flags for employees who commit workplace fraud are living beyond their means and having difficulty meeting financial obligations. The same survey estimated that American companies lost $994 billion to workplace fraud in 2008.

Aitken said someone who cannot pay his bills on time may not be more likely to steal but might not have the sense of responsibility to handle a job like processing payroll checks.