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Credit checks for jobs - discrimination?

Hi,

Having recently been made redundant I am finding it really frustrating that despite my high skill set, professional qualifications and over 10 years of experience in the banking industry, I am being turned down left, right and centre because of my credit history.

I have always held roles in the banking sector and my personal finances have not ever impacted on my ability to perform in a role, in fact I have, year on year progressed up the ladder. Is it not a form of discrimination to perform a credit check and base decisions of employment on them?

At the end of the day employers aren't allowed to provide bad references incase of prejudice so why aren't credit checks viewed in the same vain? Particularly in this climate?
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Comments

  • Denning.
    Denning. Posts: 2,749 Forumite
    Bad references are allowed provided they are truthful. Credit ratings are allowed provided they are truthful.
  • baggyann
    baggyann Posts: 83 Forumite
    I know credit checks are allowed, I'm saying it shouldn't matter and I'm struggling overcoming them.
  • WestonDave
    WestonDave Posts: 5,154 Forumite
    Rampant Recycler
    It is indeed a form of discrimination - choosing not to employ people with potentially poor records of financial management or perhaps financial difficulties which may make the temptation to steal higher. However unfortunately for you, discrimination on the grounds of credit rating is no more illegal than discrimination on the grounds of what deodorant you choose to wear. There are a few illegal forms of discrimination (age, sex, race, etc) which cannot (openly) be practiced in employment selection but what you are experiencing is perfectly legal.
    Adventure before Dementia!
  • Denning.
    Denning. Posts: 2,749 Forumite
    I think a credit check is a reasonable way to help ascertain how responsible someone is.
  • As I've already said, I've done nothing but progress and excel in my professional life. My credit suffered due to a drop in income during a particularly difficult maternity period and it is surprising how quickly credit issues can escalate. They do not tell a story on how responsible a person is, that is a judgement and that is my point.
    What if someone was affected because of a spouse, and left hanging dry? What if a sudden death was to blame? What if someone was affected because of illness? Getting into difficulty is not a sign of irresponsibility.
    You should be able to tell all you need to know from someone's employment history, their skills and expertise, references and the interview process.
  • marybelle01
    marybelle01 Posts: 2,101 Forumite
    baggyann wrote: »
    As I've already said, I've done nothing but progress and excel in my professional life. My credit suffered due to a drop in income during a particularly difficult maternity period and it is surprising how quickly credit issues can escalate. They do not tell a story on how responsible a person is, that is a judgement and that is my point.
    What if someone was affected because of a spouse, and left hanging dry? What if a sudden death was to blame? What if someone was affected because of illness? Getting into difficulty is not a sign of irresponsibility.
    You should be able to tell all you need to know from someone's employment history, their skills and expertise, references and the interview process.


    But interviews tell employers very little - some people are good at interviews, others are not, and some people lie through their teeth at them. Employment history doesn't prove anything, and even references can be dodgy - I know a few people who write great references for the people they want to get rid of! These methods are no more reliable than the credit checks.


    If you know there will be a credit check, just like CRB, get in there first and tell them what it will find. You have nothing to lose and everything to gain - if there are particular circumstances which mean that you have had financial problems, but have gone on to act responsibly and deal with those problems, then it may not be a big issue.
  • I guess that's where I'm struggling because I am being upfront and honest about it, but the agencies aren't forwarding my applications because of it and some of the places I've directly applied to have responded immediately that I haven't passed their entry criteria. It's just a shame because I've got specific expertise and I'm getting quite disheartened that I've worked so hard for ten years and it now counts for nothing. I appreciate that it's not illegal, but I really think that if the government are looking for ways to get more people into work a good place to start would be to ban credit checks.
    I understand CRB's - but financial issues aren't against the law and any assumptions made from them are purely judgemental. I see what you're both saying I'm just hoping it changes. Particularly when even financial institutions and whole countries have bad credit ratings these days!!!
  • What are your specific expertise in the banking industry? Can they be transferred into other industries?
  • Ummm...

    I'm a qualified mortgage advisor, I could practice financial advice also, more recently I've spent two years building expertise in regulation and controls (quality assurance/compliance). I've done business and corporate banking. It's quite technical but I don't know anything else and my salary has been in the region of £28k+ so most roles outside what I know need degrees or are half what I'm used to earning! plus I wouldn't perform as well in an interview for say an admin role as I simply have no computer skills...
  • Croatoan
    Croatoan Posts: 261 Forumite
    The idea that people are more likely to steal because they get a poor credit check (often built up from years ago) is as ridiculous as the idea that those who have good credit checks get them because they've been successfully stealing and not been caught yet.
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