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Uber's ride-sharing service under fire for credit checks

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First there were angry taxi drivers denouncing unfair competition, then users accusing drivers of sexual assault. Today, we've learned that Uber's ride-sharing service is under fire in the U.S. for checking drivers' credit scores.

A man in San Francisco named Abdul Mohamed claims that the company violated the Fair Credit Reporting Act by using his consumer credit report to terminate him unfairly (he has a minor criminal record that, in fact, stems from his seven children receiving much-needed Medicaid benefits).  

Mohamed said he spent about $25,000 to buy a car and began work as an Uber X driver in October. Shortly after, Uber cut off his access to the company’s phone app for drivers, and sent him an email stating the decision to fire him arose in part because of information obtained on his credit report. 

The lawsuit, which also claims that Uber violated credit reporting laws in California and Massachusetts, asks the court to order Uber to pay thousands of dollars to former drivers and would-be drivers across the U.S.

Credit checks are common practice, but in this case Uber apparently didn't give drivers a fair shot at knowing, and responding to, allegations raised in their credit reports.

Source: gigaom.com