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> Equifax is now receiving records every pay period from 2.5 million companies. Information in the reports comes from employers and payroll processors. But why
by computator 4y ago
> Equifax is now receiving records every pay period from 2.5 million companies. Information in the reports comes from employers and payroll processors.
But why do employers and payroll processors give any data to Equifax? I can understand that credit card issuers, and mortgage and auto lenders want to know the credit worthiness of people they'll give credit to, and those types of businesses are likely required to share their own customers' info if they want to participate. But what benefit does the typical employer get by talking with Equifax at all? And why wouldn't an employer demand that their payroll processor not share anything with Equifax? (Their executives and founders presumably want some privacy for themselves.)
I'm going out on a limb here and try to guess the reason: Is it because typical employees want their employer to share the info so they'll be seen as having income and therefore it's easier for them to get credit cards and mortgages and auto loans? And if this is the reason, how did this situation arise; did some employees petition their company to share info? Or did the company think it was doing a favor for its employees by giving them an employment history on Equifax?
- toomuchtodo 4y agoBecause they are lazy. In return for giving up your employee’s payroll data, Equifax provides employment verification through their automated IVR, offloading HR from the task.
- lupire 4y agoMore important, Equifax provides salary data so "competitors" can collude to reduce wages.
- jedberg 4y agoAnyone who signs up gets a report showing how their companies compare to others as far as comp goes. So they get to know if they are underpaying or overpaying. They also can pull salary history for an individual who is applying for a job in places where that is legal. But you have to submit your data to get access to everyone else's.
- b112 4y agoThis is pure evil, and should be 100% illegal.
- hammock 4y agoAs an employee you can opt out of it
- sirsinsalot 4y agoIt should be opt in really though shouldn't it. The problematic nature of opt out is common sense at this point.
- NullPrefix 4y agoopting out would put a big red flag when hiring
- mixmastamyk 4y agoBecause Equifax pays for it.
- jeltz 4y agoDo you have a source? Because companies generally care little for a tiny bit of extra cash like that. I assume the companies probably get paid in something, e.g. data as some other commenters suggested, rather than cash. While your comment suggests at least to mr that the payment is on cash.
- twodave 4y agoNah this is true. They don’t pay businesses directly but they’ll pay the software provider. The software provider will change their terms of service as innocuously as possible, get clients to acknowledge it. They’ll even add an opt-out option but few will exercise it. How many businesses today actually run payroll 100% in-house? Almost none.
- mixmastamyk 4y agoYes, for example ADP.