Credit check to get a job

[wee_student_saver]

Hi all,

 

I was wondering if a potential employer can carry out a credit check on you if they intend to employ you?

 

I was denied a job by RBS because I failed a credit check. I did a bit of research and from my probably incorrect findings it was suggested that they only need to carry out a credit check if I will need to give financial advice. As far as I'm aware a call centre monkey who helps you pay a bill or tells you what your balance is does not have to give financial advice. No big loss not a fan of RBS anyway, so I forgot about this one and moved on.

 

I applied for a job with Apple and have been offered the job on condition my references check out (they will), criminal record is checked (don't have one) and I pass a credit check (I will fail it).

 

Can they do this? I'm not giving financial advice and won't be processing financial applications, as far as I'm aware Apple use MBNA for that.

 

It's really annoying to be denied a job because of a credit check, nearly a catch 22 if this trend becomes the norm.

[ScarletPimpernel]

What was the job with Apple you were applying for? I looked at Apple's employment site and could find no reference to credit checking.

[wee_student_saver]

Hi SP,

 

It's a Mac Genius, in the Apple Store. I didn't find out about it until I was offered the job, I'm fairly sure it wasn't mentioned on the application.

[ScarletPimpernel]

Interesting. It's not unknown for companies to credit check people who may handle money as a requirement of their indemnity insurance. I'd suggest asking Apple for more info, but they don't provide any contact details for their HR Dept.

 

I was considering applying as Apple are opening a new store near me - but even though I've been a Mac fanatic for many years the pay drop would be too great.

[wee_student_saver]

I'm a Mac fan myself and I've read that you can fall out of love with them when you realise they are just another company. I'll soon see, if I get the job that is!

 

I guess I can understand why they need to ensure I'm not a thief, I just hope they don't assume because I have a bad credit history that I'm a bad egg!

[borisbeaver]

If part of the application process for a job is a requirement for a credit check, then you really need to be up front about your previous credit problems. If you lie, or fail disclose, it could be a sign of dishonesty, whereas if you tell them you've had problems in the past, sometimes it's a bonus.

 

Whilst working for a very large American Bank, in Bournemouth, one of the contractors had failed to disclose that he had a CCJ against him. We the bank found out, his contract was terminated immediately and he was escorted off site.

[JonCris]

Hi all,

 

I was wondering if a potential employer can carry out a credit check on you if they intend to employ you?

 

I was denied a job by RBS because I failed a credit check. I did a bit of research and from my probably incorrect findings it was suggested that they only need to carry out a credit check if I will need to give financial advice. As far as I'm aware a call centre monkey who helps you pay a bill or tells you what your balance is does not have to give financial advice. No big loss not a fan of RBS anyway, so I forgot about this one and moved on.

 

I applied for a job with Apple and have been offered the job on condition my references check out (they will), criminal record is checked (don't have one) and I pass a credit check (I will fail it).

 

Can they do this? I'm not giving financial advice and won't be processing financial applications, as far as I'm aware Apple use MBNA for that.

 

It's really annoying to be denied a job because of a credit check, nearly a catch 22 if this trend becomes the norm.

 

If you signed a consent form then yes they can if not then no they can't

 

As for employers wanting a CRA clearance the way things are going no one will be employable soon

 

Even a qualified lawyer is only rightly expected to declare any CCJ's or bankruptcy before qualifying

 

Best thing to do is take the bull by the horns & tell THEM you will have difficulty passing the CRA & in that way they will at least know your honest & might still consider you anyway......you have nothing to lose & everything to gain

[389shell]

I was credit checked back in 2001 when I started work for an agency within British Gas, they told me it was to see if I had any debts relating to BG.

[JonCris]

I was credit checked back in 2001 when I started work for an agency within British Gas, they told me it was to see if I had any debts relating to BG.

 

Even if you consented or not they shouldn't have done a CRA check just to find that out. They should/could have checked with their own accounts dept

 

They commited an offence

[davethorp]

This thread demonstrates one of the things that absolutely terrifies me especially given the CRAs reputation for harbouring inaccurate or biased data.

 

A day will come when it is not possible to go to the lavatory without the say so of experian, equifax or call credit mark my words

[crh]

The only people i was aware of credit checking for employment was if you where giving finacial advice/products/broker or if you where working for the goverment and you needed a security clearence

 

even then you have to sign a consent and if you dont its straight on the phone to the ICO!

 

The only reason i can imagine apple CRA checking you is that if you had to sell finance on there products. Like someone else said its better to be upfront about this stuff at the application process.

 

I think the CRA's are way out of control though.

[389shell]

Even if you consented or not they shouldn't have done a CRA check just to find that out. They should/could have checked with their own accounts dept

 

They commited an offence

 

I did consent because they said it was their standard practice, I didn't really think anything of it at the time, I was just desperate for a job and they pay good money.

 

If only they had kept a track of me! I was running a team that was SO wrong, without going into too much detail, they were absolutely robbing people because of a major cock-up years before. Little did they know they had customer rights crusader in their fold, I must have knocked thousands and thousands off bills sent out. Grrrrrrrrr, the most unprofessional workplace I ever stepped foot in, I was shocked to the core my first month there, needless to say, I am there no longer

[JonCris]

Like I said it didn't matter that you consented. You can't consent to something in which you have no choice or the threat of a job refusal is held over your head if you don't, that's coercion

 

Particularly in the case of BG as if they just wanted to check if you had any outstanding debts with them then all they had to do was ask the accounts debt. They are using that as an excuse & no more

 

I do know quite a bit about utilities overcharging sometimes by £1.000's & I think I know the reason why but it would help if whilst your here you enlightened us a little more as to their scams

[Roseoftralee]

I would really appreciate some help. My husband has worked for the same company for 25 years. He visits different sites to check on machines quality so visiting lots of different companies. one of the banks he visits wants to do credit checks on people visiting the banks on a regular basis which my husband does. We know he will fail the credit check as we have had money troubles for a number of years. Can his employer sack him as if he fails the check he will not be able to visit sites which require a credit check. He is 61 and worried sick he will lose his job of 25 years. We are not dishonest people. Many thanks

[elche]

Even a qualified lawyer is only rightly expected to declare any CCJ's or bankruptcy before qualifying

 

Just wanted to point out that since 1st Sep 2006 any trainee solicitor seeking admission to the roll is required (amongst other things) to obtain a satisfactory criminal record check - standard disclosure. www.sra.org.uk/documents/students/training.../requirements.pdf

 

Although I never quite worked out how the SRA got round to checking sol's whose names were already on the roll ....?????

 

As for the broader question raised on this thread then from an employment law perspective an ER can put any requirements to potential applicants for a role, provided those requirements are not in any way discriminatory, infringe a statutory right or are in any other way unlawful.

 

If I run a cake shop and decide I want to credit check applicants for a role as cash handling is part of the job, then providing the applicant consents, I can. Ultimately if the applicant does not like it they can 'vote with their feet' and not apply.

 

I must STRESS I do not agree with this practice unless it is objectively justified in relation to the role but that is a personal view not a 'legal' one.

 

Che

[SarEl]

I agree _ and I also find these sorts of checks rather pointless as they say nothing at all about a persons honesty. I know more than a few "sharks" who I wouldn't trust out of my sight (and sometimes in it) who could easily pass a credit check. But I should add that having a poor credit record does not have to mean that they will fail your husband anyway. They would take into account a number of things, and whilst he may not qualify for a credit card any time soon, they will not necessarily bar him from their premises for having goti into money problems. If they did, half their customers wouldn't be allowed in! So try not to worry about it, and come back if something untoward does happen.

[ajax95]

I applied for a job at ING a year ago and had to go through a credit check. Have had a problem or two with Lloyd's in the past and even though it never got to the CCJ stage or bankruptcy I wasn't too hopeful.

 

I wasn't entirely surpirised when I didn't get the job...

[borisbeaver]

This thread's as old a Lazarus!

[luluspice]

This thread may be as 'old as Lazarus' but the question remains current!

I have issue with this credit check to get a job & I contacted the FSA as agencies & employers were saying they HAVE TO do these checks under FSA regulations. Some of the companies who want to do credit checks are not even regulated by the FSA as I recently found out!

It turns out that the FSA DO NOT tell any one to credit check employees. They only require that some persons be 'a fit & responsible person', However this criteria only applies to positions of Control (as said above). i.e directors , finaincial advisors etc. not joe bloggs in a call centre! how a compaany decidees what background checks to use to decide this is down to them. The FSA do not say a credit check is a must. It is down to a company to apply there own criteria & if they choose to do a credit check then so be it. I would question why they want to do it & if they say they have to under FSA regulations then tell them to check their facts! I have pasted in the email i got from FSA 7 it includes a link to the regulation handbook. I was very inpresssed with their reaponse, not the usual Template letter!

Thank you for your recent email.

I understand that you would like to know what rules and requirements the Financial Services Authority (FSA) has regarding employer carrying out credit checks on potential employees. I do appreciate the frustration that this matter is causing and I am glad that you have contacted me. In my response I will clarify the position of the FSA on credit checks.

Firstly, it is important to explain that the FSA only requires certain people are individually approved by us. Roles that require our individual approval include being a director or giving investment advice. These roles are known as controlled functions and the individuals who perform them are called approved persons. For more information about the approved person regime please see our website. I have provided a link to the relevant webpage below:

www.fsa.gov.uk/Pages/Doing/Regulated/Approved/persons/index

This means that the FSA does not have specific rules regarding employees who are not doing a controlled function other than a requirement for them to be competent to do their job.

When a firm applies for a controlled function for their employee then the applicant is judge on whether they are fit and proper to carry out the role. This fit and proper test includes an assessment of financial soundness. For your information I have provided below a link to the Fit and Proper test for Approved Persons section of the FSA Handbook. Specifically, the section that deals with financial soundness:

www.fsahandbook.info/FSA/html/handbook/FIT/2/3

As you can see from the above we do not stipulate that the applicant will under go a credit check, however, many firms choose this method as a way of determining the suitability of the applicant.

In summary then, the FSA has no rules regarding whether or not employees, who do a job that does not require them to be individually approved, under go a credit check. Whether or not they do is down to the discretion of their potential employer. When it comes to roles that do require a controlled function the FSA does assess financial soundness but does not stipulate that the applicant has to under go a credit check.

[Spongebob1967]

I have experienced this now on many occassions. I have worked for mobile phone operators such as O2, Voda, CPW, p4U etc and currently out of work. Every one I have applied for has said the need to do a Credit Check as they are FSA regulated businesses.

 

I got so frustrated with it I have brought it to the attention of my MP who is asking questions in parliment. I will feedback once I get an answer.

 

This in my mind is discrimination against the poor of society. Governement has removed all other forms of discrimination like age, race, religion etc so companies have found a new way to filter out the undesireable of society.

 

I have now been offered a verbal and emailed offer of employment and asked to do pre-employment checks. I am half expecting them to withdraw the offer due to the credit check.

 

If they do can I take them to court for breach of contract? I dont know but if this is allowed to continue then I am on the scrap heap, I am over qualified for warehouse work, I have tried and what I am good at I cannot get employment due to bad credit.

 

Its a slippery slope and I for one will not let this drop.

[Sidewinder]

I have experienced this now on many occassions. I have worked for mobile phone operators such as O2, Voda, CPW, p4U etc and currently out of work. Every one I have applied for has said the need to do a Credit Check as they are FSA regulated businesses.

 

I got so frustrated with it I have brought it to the attention of my MP who is asking questions in parliment. I will feedback once I get an answer.

 

This in my mind is discrimination against the poor of society. Governement has removed all other forms of discrimination like age, race, religion etc so companies have found a new way to filter out the undesireable of society.

 

I have now been offered a verbal and emailed offer of employment and asked to do pre-employment checks. I am half expecting them to withdraw the offer due to the credit check.

 

If they do can I take them to court for breach of contract? I dont know but if this is allowed to continue then I am on the scrap heap, I am over qualified for warehouse work, I have tried and what I am good at I cannot get employment due to bad credit.

 

Its a slippery slope and I for one will not let this drop.

 

If they intend to credit check you then you must give your permission, so in any small print about pre-employment checks, this must warn you that their checks may include a search of your Credit Reference file. Similarly, if the job offer is conditional in any way and they decide to withdraw the offer due to anything which they don't like in the pre-employment checks then there would be no breach of contract as the contract would not have been fulfilled.

 

I sympathise wholeheartedly with your situation, and hope that somebody soon gives you the chance that you deserve. How long before the credit file becomes clear?

[colikirk1]

Have been looking into this over the last couple of days scince seeking new employment and came across this thread. From what I have been able to understand even from the FSA, is that they have no mandatory requierment for anyone to have or be credit checked for employment. Even a company director of a financial institution only has to be a "fit and proper person " of financial standing regardless of credit worthiness.

The way I see it is that it amounts under the Employment Act as indirect discrimination as it does not take into account a persons personal circumstances due to family upheavel or unemployment or age ( an older person is more likely to have advesre credit than someone just left school) Thats Life!!! or any of a thousand other individual reasons.

If a drug trafficker has a healthy bank account and good credit does that make them any less a drug dealer? or a well respected member of the community with a perfect credit score any less likly to be a child molester?

When you look at credit refrencing agency websites you will find that it amonts to scare tactics (advising their clients - the employer - that a good credit score amounts to an indicator of a persons honesty!!!) It resembles the scare tactics of the previous American Administration that all Muslims are potential terrorists.

Finnaly, in my rant lol lol !! Should the employee not be carrying out the credit worthiness of the employer as it is the employee that is providing his/her services, time, skills on a 28 day basis awating payment for their work. So effectivly it is the employee that is advancing credit to the company not the other way about.

 

Many Thanks for letting me get this out there!!

[luluspice]

Well said!! With unemployment rising and all the 'austerity' moves there are going to be plenty more folk with less than perfect credit scores so maybe this issue will face a legal challenge eventually. May push for it myself once my present problems settled!!!