Background Screening - Credit Check

fonria

Hello everyone,

I've seen similar stuff posted on these forums but nothing that really addresses my query here.

I have recently been given an offer of employment from one of the 'Big 4' in the UK, the job is on a graduate scheme in the Audit service line.

As part of my provisional offer of employment, I have to complete a background check. To my knowledge, this will include a credit check. I have not yet received all the paper work so I am unsure as to which company the employer will be using (Verifile, FirstAdvantage) or whether or not they request this directly from Experian after I give my consent.

My issue is, I have had issues with credit for many years and I am literally only just beginning to put my affairs in order. Even as of this month, I have several missed payments on my credit report due to having to support myself (and an elderly relative) financially on a very low income AND being fundamentally forgetful about paying bills on time. It's nothing too serious, however I do have an unsettled pay day loan for about £600 that is showing as 'Delinquent' despite rearranging with the creditor to pay it off completely within a year.

My total debt is around £3800 which I know is relatively low however it's composed of credit cards and payday loans. I have had several searches on my file in the past few months. The main issue is the several missed payments however these should all show as up to date within a month or so. I also have two defaults from around two years ago however these are only for £150 each respectively. At the moment, I have an agreement with all my creditors about how I am paying down the balances.

Therefore, I am wondering just how much of my chequered financial history will be shown to my prospective and hopefully future employer? I've seen conflicting reports that say that the employer will see EVERYTHING on my credit report including missed payments, searches etc and others that say they will only perform a 'soft check' on my file and see only CCJs/Bankruptcy's/IVAs and other 'adverse credit records' (whatever these may be).

I have seen posters say that only organisations who shares credit data, such as a bank, can see the full credit report. Do any of the 'Big 4' share credit data with Experian?

I'm unsure as to what to make of this the template on the Experian website which seems to suggest that they only provide details of CCJs/Bankruptcies.

I must stress that despite being stupid with paying bills on time and applying for credit, I have never had a CCJ or come close to agreeing a DMP. I've always managed to ultimately stump up the funds.

Any input would be very much appreciated.

quinndelfre

If you have two consecutive delinquents it shows in your credit report, but if it's just one then I think the only impact is your credit score. The two defaults is probably a deal breaker. I'm willing to bet the employer will revoke your offer because you will fail the credit check. Employers can see defaults up to 6 years from your default date.

stclair

quinndelfre wrote: »

If you have two consecutive delinquents it shows in your credit report, but if it's just one then I think the only impact is your credit score. The two defaults is probably a deal breaker. I'm willing to bet the employer will revoke your offer because you will fail the credit check. Employers can see defaults up to 6 years from your default date.

Employers only see public records such as CCJs and Bankruptcies etc.

They won't get get to see payment history or defaults.

http://www.experian.co.uk/background-checking/pre-employment-credit-check.html

quinndelfre

stclair wrote: »

Employers only see public records such as CCJs and Bankruptcies etc.

They won't get get to see payment history or defaults.

http://www.experian.co.uk/background-checking/pre-employment-credit-check.html

Not entirely true. If the employer uses Equifax the default will show.

Look at Santander's pre-employment credit check for example, they specifically point out they do look at any missed payments and defaults.

I know someone who was rejected from PwC because he had 1 default outstanding. He never said anything, the default showed on the credit report.

fermi

Members of the closed user groups like banks who share credit account data can, under SCOR rules, also check that level of data in pre employment credit checks.

They can do that with all 3 CRAs. It's not contingent on them reporting to that particular CRA.

The Experian link earlier is for companies that don't have such sharing permissions. Companies that do would do checks via a different route.

fonria

Thanks for your replies everyone. I just have a few more questions.

1) Does anyone know, or is there any way of finding out, if an accountancy firm in the Big 4 share info with the CRA's?

2) Also, I've seen people online state that the likes of TFL asked their permission to a 'full credit check' that includes payment history etc. Is this true? Or is it just, as many people have already said, only available to companies who share data with the CRA's. I.e. There is no way for a company who doesn't to look at anything but public info.

Thanks so much for your help.

kirstybum

There's a post on here called 'who uses who' which states which companies use which CRA for reporting and searches

fermi

http://www.scoronline.co.uk/files/scor/por_version_36.pdf

Section 5.4

JKSandy

I have worked for E&Y and PWC and only a public/basic credit check was done.

fermi

Got to much the same answer here I think?

https://twitter.com/fermi239/status/583647490202808320

GingerBob_3

In general - and the term is used here in a very loose fashion - only those organisations that report you to the CRAs can carry out full credit checks. But don't forget, the number and scope of such organisations is increasing all the time, as a result of CRA marketing. Even the humble water companies are now reporting you (if you provide them with enough personal data to do so). So don't be surprised if, in future, you apply for a job with the leccy company and they feel obliged to probe your detailed finances.