Rejected for job based on a credit check?

Charlie142

Hi All; Question first; what type of employment/credit check is this? I am familiar with CRB etc and it doesn't appear to be that.

My son applied thru an agency for a role with a fairly large Pensions company (only as an administrator; not even allowed to give advice etc), he did this thru a local recruitment agency who are commisioned by the company. he was told at the intial interview with the agency that they carry out some sort of credit check. He has some recent defaults on 2 credit cards and with a payday loan company (since he was made redundant) he has agreements in place with them to clear his debts with them. However after a second interview with the agency (who said they would now put him up to the company) he was specifcally told that although the agency thought he was an ideal candidate with previous experience working as a pensions administrator he has not got the job due to the credit check.

I am currently BR (with AD due in March 11, yes doesn't sound great as a family does it!!) but my concern is 2 fold. Although he doesn't live with me and hasn't been registered at my address at all for last 7 years, is there possibly any connection where my status as a BR has caused this rejection? He hasn't had to list me as next of kin or anything like that as far as I know.

Secondly whilst I understand that financial institutions would have certain crieria in terms of who they employ (i.e probably not me as a BR), is it the case that simply because your credit rating is not good (or you have defaults registered against you, not CCJ's by the way) that you can be discriminated against for a job role based on your credit rating?

With repsect defaulting on a credit card or loan isn't something to highlight on your CV, but surely it does not make you unenmployable or a criminal? What sort of check could this be?

Any thoughts please?

tigerfeet2006

Unless you had a loan together then your BR will not effect him at all. Though it is always worth him checking with ALL THREE of the credit reference agencies to see if there is any eroneous connections any where.

BUT as the job he wanted to do was financially based then the firm will do a credit check and with a default on a pay day loan and credit cards over a long period of time and they will continue to default him as he is paying reduced amounts. it won't look good and they are within their rights to turn him down.

frasersmum123

Before I had children I worked at the Halifax Mortgage Processing Centre - I was given a credit check when I started. Its fairly standard practice for any job within finance, whatever the job, as you may start there but move somewhere else. Unfortuantely debts can lead to personal crisis which can lead to people making very bad choices because they feel like they have noweher to go. This is how Halifax explained it to me when I started.

Charlie142

Thanks Tiger, I guess its just the stark reality these days that not managing money well seems to say more about you than anything else. It shows the depth of the repurcussions as well. Yes I will get him to check out the CR agencies and see what they have.

Hopefully its a lesson learned early enough about the repurcussions of poor personal money management; pity it came a bit late in life for his Dad!!

Cheers.

Charlie142

Thankyou Frasersmum; yes I can see how that train of thought has some validity. On that basis though there are an awful lot of people out there at the moment that would struggle to obtain employment in any cash handling or financial service organisation; although I imagine not all are quite so stringent as this.

Thanks though, helps to understand.

debtinfo

plus in todays job market employers can afford to be chosey

ILW

I remeber quite a while ago, as a bank employee you were not even allowed to have an overdraft.

andyf1980

It's not a matter of the climate, it has always been like this. Thinking is if you don't manage your own finances properly you're unlikely to look after others properly.

It's also down to a perceived increased risk of fraud if you have money problems.

Am not saying it's right, just the way it is.

frasersmum123

ILW wrote: »

I remeber quite a while ago, as a bank employee you were not even allowed to have an overdraft.

That was the same when I worked for NR. My friend and I had interviews at the same time and she got turned down because she couldnt prove her address history and she has an OD.