Credit Checking for new Employees

[bluebottle]

Re: Credit Checking for new Employees

Anyone with a conviction for criminal dishonesty is subject to the Rehabilitation of Offenders Act and other legislation. This places certain restrictions upon them, e.g. not permitted to obtain insurance, have bank account, work in financial services, etc.. I have to agree with Teaboy that it is more important to know that a person is honest than what state their credit file is in. A question I would ask is, "What legislation permits this intrusion into a person's private life?" If there is no legislation allowing it, then there is nothing to stop the DWP challenging employers, except their arrogant slaphead of a Secretary of State Ian Duncan Smith.

[Shadowcat]

Re: Credit Checking for new Employees

Another problem these days is that the regulations allow abuse on the part of companies who lend money and people are being sucked into predatory loans. It's too black and white to argue the toss as to whether they should take out loans in this day and age of enlightenment but knowledge that is gained from sites such as this is not always going to be sought or available to people. I had absolutely no idea of the intricacies of subprime until we hit problems and approached them, they chose to attempt to go down the repossession route first and foremost, they lost but legal costs and 'sundries' were still heaped on top of the loan once out of sight of the judge. Non-affordance of the law to balance out predatory lending is stacked against people, therefore checking credit details when it is such a one-sided system is not good.

[messimoo]

Re: Credit Checking for new Employees

you hit the nail on the head there even though indirect this process of not employing people due to credit problems are infact infringing our human rights

(1) Everyone has the right to work, to free choice of employment, to just and favourable conditions of work and to protection against unemployment. (2) Everyone, without any discrimination, has the right to equal pay for equal work.
(3) Everyone who works has the right to just and favourable remuneration ensuring for himself and his family an existence worthy of human dignity, and supplemented, if necessary, by other means of social protection.
(4) Everyone has the right to form and to join trade unions for the protection of his interests.

[Shadowcat]

Re: Credit Checking for new Employees

I think doing this would not hold up in European Court of Human Rights for sure. And actually, so it shouldn't. Discrimination comes to mind because somebody gets into debt, I wouldn't get a job based on this (Swift thread) but I've never stolen in my life and never would and hold down a very responsible job that requires police and background checks but based on the above coming into practice, I wouldn't get it because Mr S's bad luck on the employment front? So will they be looking to get rid of me? It's all a bit skewiff.

[messimoo]

Re: Credit Checking for new Employees

I think we can agreee to disagree LOL in one way yes if a person has continually got into debt by overspending and living beyond their means and has many unsatisfied CCJ,s due to flippancy then yes that is trusworthyness in credit down the pan . Whereas someone who has had problems in the past and thier record does in fact show satisfied debt and CCJ,s with only a few defaults they are sorting then these should infact be given the chance not employers looking into credit files seeing that the have had a ccj in the past and decide on the spot they are a bad person . I too have never stolen in my life or done anything wrong but have been penalised heavily for past problems beyond my control. maybe we should follow the states or comanies heavily regulated on the amount of data they are allowed to see and less likely for them not to employ someone for bad credit.

[Eloise01]

Re: Credit Checking for new Employees

There's something that many job seekers ought to know about, namely employment credit checks. Yes, they can keep an individual from getting a job. However, not every employer performs them, many overlook them and in some states, are illegal.

And, of course, this would be relevant in what way? This is the United Kingdom and not the United States - the latter being where you are from and what you are commenting on.

Just wondering whether this is another of the "introduction to later spam" posts that we have been experiencing recently, or you haven't bothered looking at the applicable country before posting irrelevant advice?

[charitynjw]

Re: Credit Checking for new Employees

At the risk of sounding controversial, (& please bear in mind that I am not an employer), I think that, if I were to contemplate taking on an employee, I would want to have some idea of that person's honesty & integrity, & if the job gave access to my firm's money, goods etc, I would want to have some knowledge of that person's level of indebtedness.
I would much prefer that the info was given voluntarily - sadly that is not always the case!

[messimoo]

Re: Credit Checking for new Employees

Blimus, This has been resarected LOL. I understand where you are coming from Charity, but also because of past debt or A few glitches on a credit report you are penalised and the most horrid thing (which makes me so cross) , is you are made out to be a possible fraudster, thief or a undesirable person, in normal cercumstances would that not be defamation of character?

[charitynjw]

Re: Credit Checking for new Employees

Blimus, This has been resarected LOL. I understand where you are coming from Charity, but also because of past debt or A few glitches on a credit report you are penalised and the most horrid thing (which makes me so cross) , is you are made out to be a possible fraudster, thief or a undesirable person, in normal cercumstances would that not be defamation of character?

Hi messimoo,

I doubt it - a defense to a claim of defamation is that the stated fact(s) is true.

[bluebottle]

Re: Credit Checking for new Employees

Hi messimoo,

I doubt it - a defense to a claim of defamation is that the stated fact(s) is true.

The unfortunate fact is, the moment you say a statement you have made about another is true, you have to prove it is true. Alleging someone is dishonest is a very serious allegation and if not proven, carries serious implications, one being liability for damages - £70,000 + costs is not beyond the realms of possibility and was awarded against Tesco for wrongly accusing someone of shoplifting - and the other being loss of reputation as it would show the person claiming what they said was true to be unreliable and, potentially, to have acted out of malice.

[messimoo]

Re: Credit Checking for new Employees

confused now LOL . So if my thinking is correct those companies refusing to employ through bad credit ratings because you may commit theft, fraud or other crimes against the company could be sued for defamation of character, but it would be very difficult to prove. Please correct me if I am barking up the wrong tree.

[wales01man]

Re: Credit Checking for new Employees

Would a company realy be as stupid to leave them open to a defamation case by stating they wont employ someone because of their credit historyor rating?

[messimoo]

Re: Credit Checking for new Employees

I in fact had a meeting way back last year with a director of a banking organisation who credit check all employees down to call center and post room staff, he admitted in a round about way that this was the reason for not acepting credit impaired employees but was not so blatent about it. On the otherhand a well known insurer I had an interview with asked if i had any credit imparements or ccj,s and if so that was the case then if taken on their employment would be terminated. When I asked the reason why this was important the interviewer states that credit impaired candidates and employees was a severe risk of stealing from the company. Funnily enough I have now got a job with an insurer who did not do any credit checks (awaiting start date) and did the right thing taking someone on with experience and know how on the job in hand and not how their credit file looks.

[Eloise01]

Re: Credit Checking for new Employees

The unfortunate fact is, the moment you say a statement you have made about another is true, you have to prove it is true. Alleging someone is dishonest is a very serious allegation and if not proven, carries serious implications, one being liability for damages - £70,000 + costs is not beyond the realms of possibility and was awarded against Tesco for wrongly accusing someone of shoplifting - and the other being loss of reputation as it would show the person claiming what they said was true to be unreliable and, potentially, to have acted out of malice.

But credit checking does not make a statement as to the persons honesty or not - that is just the implication made by someone on this thread. As far as employers who do credit checks are concerned, you pass or fail - and that is a fact. On the basis of that fact they decide whether to employ you, which is their right. It doesn't matter whether we agree with this or not, it is simply a statement of fact, and so no statement exists on which to base a legal action. In essence it is no different than "we require a graduate" - you either are, or are not, a graduate. I think that people here have become confused between credit checking and DBS - the latter is a check on your "honesty or integrity" because it is about your criminal record. And the latter is tightly regulated as to who can make such checks and in what circumstances.

And in fact the only case I have ever heard being put about credit checking (and I am not saying that I agree with it, simply that it was a case put) was that people in substantial debt may be more prone towards security risks - being paid by people to obtain information / favours and so on. I didn't think it was a convincing argument, but then it is irrelevant. Employers set the qualification bar and you pass or fail.

I should also point out that many responsible employers, when checking either DBS or credit ratings, consider the circumstances and the relevance to their business. Not all employers are bad employers, and not all employers who set high standards for their employees are bad employers.

[enaid]

Re: Credit Checking for new Employees

Just wonder what would happen if someone was refused employment only to find out later it was because of an incorrect mark on their credit record. It does happen as we know, who would be the one to be sued I wonder lol