Will a credit check be carried out?

rebeccak

I'm due to be appointed to the Board of Directors of the Company that manages our block of flats, which will include being able to sign off payments etc. I have (or should have) a spotless credit record but I've recently found out that NatWest have incorrectly recorded on my credit record that I was in serious arrears. (I have another thread about that and the financial ombudsman is writing to them).

However, I'm concerned about whether a credit check will be done for this position as, if so, it is going to cause major embarrassment, damage to my reputation and lose me this role. Is a credit check usually done in these situations and will they have to ask my permission first to get a credit check (possibly giving a bit more time for NatWest to get their act together and correct it)? I do have a letter from Nat West in May stating that the arrears were allocated to my account due to an error on their part and have been removed but it still shows on my credit report.

MEM62

It would be extremely unusual for a credit check to be run in these circumstances. You personal financial standing is irrelevant. As long as you are not banned from holding a company directorship you will fill in the necessary declaration for Company House and its done.

GingerBob_3

rebeccak wrote: »

I'm due to be appointed to the Board of Directors of the Company that manages our block of flats, which will include being able to sign off payments etc. I have (or should have) a spotless credit record but I've recently found out that NatWest have incorrectly recorded on my credit record that I was in serious arrears. (I have another thread about that and the financial ombudsman is writing to them).

However, I'm concerned about whether a credit check will be done for this position as, if so, it is going to cause major embarrassment, damage to my reputation and lose me this role. Is a credit check usually done in these situations and will they have to ask my permission first to get a credit check (possibly giving a bit more time for NatWest to get their act together and correct it)? I do have a letter from Nat West in May stating that the arrears were allocated to my account due to an error on their part and have been removed but it still shows on my credit report.

I don't know whether they will carry out a credit check, but it's possible.

They don't need your permission to carry out a credit check, but they may ask for it anyway.

HappyMJ

The credit check they carry out is just a check to see you are not an undischarged bankrupt, had a DRO or in an IVA which could mean you could not hold a position as director. This information is public.

MuddyFunster

Whether they carry out a credit check with be down to the Company in question - although they'll have to ask you first of course - although it may be buried within the Ts and Cs of anything you sign.


It's worth noting however than if the Company you will be a director of applies for credit, they will often search the directors details too - if it's a multi-million pound turnover company with dozens of directors they probably wont - if it's a more modest sized company with 2-3 directors they probably will.

GingerBob_3

MuddyFunster wrote: »

Whether they carry out a credit check with be down to the Company in question - although they'll have to ask you first of course - although it may be buried within the Ts and Cs of anything you sign.


It's worth noting however than if the Company you will be a director of applies for credit, they will often search the directors details too - if it's a multi-million pound turnover company with dozens of directors they probably wont - if it's a more modest sized company with 2-3 directors they probably will.

No they won't.


https://ico.org.uk/for-the-public/credit/

MuddyFunster

GingerBob wrote: »

No they won't.


https://ico.org.uk/for-the-public/credit/

Okay, perhaps I should have asked 'tell' and not 'ask'.


Either way OP will have to be informed that a credit search is part of his/her acceptance of becoming a director - even if it's buried in some paperwork somewhere.