Authorised Signatory ID Check and Possible Credit Check

Bella2007

Hello everyone,

I'm starting a new job in accounts and have been asked to bring in a proof of ID and passport so that the current authorised signatory can make me the new authorised person to deal with the bank accounts. I'm not sure if he signs things but he has online access to the company accounts and makes the transfers, so I will be taking this over from him.

I am good at my job but my credit rating is very low - this is because I had to work part-time for years while studying and ended up using payday loans and overdrafts. I am paying it all off through the CCCS and only owe £5000 in total, but recently 3 lenders have put defaults on my credit file .

I'm really, really worried that this will be flagged up by the bank when it checks my ID and file. Can someone tell me if the bank can refuse to make my an autorised signatory on the basis of my low credit score?

Thank you very much...

B

SuperHan

It's unlikely the bank will care as you won't be liable for any debt you run up.

Whether the company wants someone with a bad credit rating having access to their accounts is a different matter.

Bella2007

Thanks, SuperHan!

You answer makes sense. It would be unfair for the company to judge me (should they find out about my rating) but on the other hand I would never employ a bookkeeper who has debts - the perception is that they'd be tempted to commit fraud! It just feels like there's a very strong stigma attached to owing money.

But I'm honest and have a very strong work ethic, and my finances are good (it's just that I was under-earning for ages) so I just have to hope that I pass the ID check and that my debts don't get flagged up.

B.

tinkerbell28

The bank will 100% credit check you for a position of signatory. All your debts will appear as they have access to full reports. If it's a bank, they can do a full pull of your report. It can stop you as they have to adhere to strict guidelines.

Yes they can refuse you the job and a high chance they will. As of the nature of what you are asked to do. Did they ask you about your finances at any point on the application. If so what did you say? Where you 100% honest about issues when asked? If not that can land you with a CIFAS marker too.

If you were honest or were not asked specific questions etc, then personally I'd have been upfront anyway. As it's quite an important bit of information for the job you're applying for really. By not being straight up and asking if it would be an issue, it could make it look like you're trying to hide your financial issues. Which could make them question your suitability on it's own.

Bella2007

tinkerbell28, your comment alarmed me so much that I visited two different banks today. They both assured me that my credit rating had no impact whatsoever on an application to be a signatory for a company. A business advisor from one of the banks said he was 100% sure of that, that he gets asked this all the time, and that all the bank needs is to check my ID and keep a copy of my signature.

I mentioned to my boss anyway that my credit rating was bad, and he said that as long as I hadn't stolen money it was OK. I'm now worried I've sown the seeds of doubt in his mind, and I am terrified in case he starts suspecting me of potential fraud.

There was probably no need for me to even mention it to him, and I take exception at people's sanctimonious attitude that 'if I don't come clean about my debt, I'm not the right person for the job.'

I am in no way more likely to commit fraud than anyone else. My debt is a result of coming from a poor family and trying to study to get better employment. As we saw with the MP expenses, even people with good credit ratings commit fraud and you can't suspect everyone before the fact.
I feel very strongly about this - my private life is my own, I only work 7.5 hours a day and what I do the rest of the time is my business, unless I get a criminal record or some such thing. I have ten years of excellent references so don't see the need for people to pry any further into my affairs.

Once I know for sure if I have passed the checks, I will post the answer here in case anyone else needs to know how these things work. Hopefully it will avoid other people the amount of stress and worry I've been through over this (or else confirm that they're right to be worried!)

tinkerbell28

You're going for a job in a bank right? Where they can pull your whole file and will do so for even a job with half the responsibility of the signatory.

Now if you already work for said company, and have a proven record. Which is not clear. That is a different story. As they could possibly not care and take into account your already proven good conduct. Going into a new bank, they won't have that.

Banks have certain criteria they have to meet under FSA regulations.

So it's not prying if they do, I know from experience of background checks. Be upfront from the start.

I'm more alarmed anyone is giving you advice about credit ratings, the don't actually exist.

anamenottaken

tinkerbell28 wrote: »

You're going for a job in a bank right? Where they can pull your whole file and will do so for even a job with half the responsibility of the signatory.

Now if you already work for said company, and have a proven record. Which is not clear. That is a different story. As they could possibly not care and take into account your already proven good conduct. Going into a new bank, they won't have that.

Banks have certain criteria they have to meet under FSA regulations.

So it's not prying if they do, I know from experience of background checks. Be upfront from the start.

I'm more alarmed anyone is giving you advice about credit ratings, the don't actually exist.

That is not how I have read the OP's situation. It is about being a signatory (or otherwise having access to a company's bank account) and that company is not a bank!

The FSA regulations about checking staff wouldn't apply to someone who was simply an employee of a company which has a bank account.

anamenottaken

Bella2007 wrote: »

tinkerbell28, your comment alarmed me so much that I visited two different banks today. They both assured me that my credit rating had no impact whatsoever on an application to be a signatory for a company. A business advisor from one of the banks said he was 100% sure of that, that he gets asked this all the time, and that all the bank needs is to check my ID and keep a copy of my signature.

I mentioned to my boss anyway that my credit rating was bad, and he said that as long as I hadn't stolen money it was OK. I'm now worried I've sown the seeds of doubt in his mind, and I am terrified in case he starts suspecting me of potential fraud.

There was probably no need for me to even mention it to him, and I take exception at people's sanctimonious attitude that 'if I don't come clean about my debt, I'm not the right person for the job.'

I am in no way more likely to commit fraud than anyone else. My debt is a result of coming from a poor family and trying to study to get better employment. As we saw with the MP expenses, even people with good credit ratings commit fraud and you can't suspect everyone before the fact.
I feel very strongly about this - my private life is my own, I only work 7.5 hours a day and what I do the rest of the time is my business, unless I get a criminal record or some such thing. I have ten years of excellent references so don't see the need for people to pry any further into my affairs.

Once I know for sure if I have passed the checks, I will post the answer here in case anyone else needs to know how these things work. Hopefully it will avoid other people the amount of stress and worry I've been through over this (or else confirm that they're right to be worried!)

I think the fairy got hold of the wrong end of the wand and thought that being a signatory to a bank account made you a bank employee.

tinkerbell28

anamenottaken wrote: »

I think the fairy got hold of the wrong end of the wand and thought that being a signatory to a bank account made you a bank employee.

I know what being a signatory is, I am one.

Bella2007

anamenottaken wrote: »

That is not how I have read the OP's situation. It is about being a signatory (or otherwise having access to a company's bank account) and that company is not a bank!

The FSA regulations about checking staff wouldn't apply to someone who was simply an employee of a company which has a bank account.

Yes, anamenottaken, you're absolutely right. Just started working for a small company, not a bank. I have no particular wish to have access to their accounts but found out after I started that it's a condition of the role.

I wish I hadn't read tinkerbell's message earlier as it just made me panic for nothing and I mentioned my bad credit rating to a boss who had no need to know about it and may now view me with suspicion.

I've just read about this extensively online and it does seem that banks only check signatories for money laundering purposes. Even people with IVAs have been getting approved as signatories. So it was a bit off getting a comment saying I would be 100% checked and that there would be a high chance I would be refused, and implying I'm some sort of a dodgy person.

CKhalvashi

Bella2007 wrote: »

I wish I hadn't read tinkerbell's message earlier as it just made me panic for nothing and I mentioned my bad credit rating to a boss who had no need to know about it and may now view me with suspicion.

I have a former BR as a signatory on our company accounts.

She's an extremely good fleet manager, and has access to pay invoices that she runs up for company purposes. A member of staff that I wouldn't want to lose.

I've just read about this extensively online and it does seem that banks only check signatories for money laundering purposes. Even people with IVAs have been getting approved as signatories. So it was a bit off getting a comment saying I would be 100% checked and that there would be a high chance I would be refused, and implying I'm some sort of a dodgy person.

As above, a former BR can access our accounts (and could when she was BR, too). It's (IMO) down to how the person in question behaves.

She was honest at interview that she'd just had a business fail, as you've been honest regarding your financial past. As an employer it makes me feel better about an employee.

CK