Debt collection for student loan and its effects on employment

CreditD94

Hey guys and gals,

I recently applied for a job and after the interview went smoothly I was told that I had the position. About a week later after my credit and criminal background checks had been sent, I received a call from the recruitment agency saying there was an issue with the background and credit checks (they did not specify which) and that the company had to withdraw the offer.

I know for a fact that I have not been convicted of any crimes, and I have no criminal record. However, I did have an outstanding student loan of approximately £2,000 which was then sent to debt collectors. Aside from that my credit score, for someone who just graduated from uni, is comparatively decent.

I'm wondering whether anyone has experienced something of the sort, and whether you know if debt collection may have prevented me from getting the job.

Westminster

If this was for a job in financial services then there isn't likely to be much you can do.

If it was for another industry - then were you asked about anything to do with your financial history in the application process (and if so - were you honest about the student loan).

It might be worth getting copies of your 3 CRA files in case there is something on there you are not aware of - which could also include fraud or mistakes - that you might be able to clean up.

Lungboy

How do you have a defaulted student loan if you've just graduated? I thought current loans were taken automatically from paye and were impossible to default on.

CreditD94

@Westminster, so you're saying that I've lost the job for good and there is nothing I can do about it? And yeah, it was a job in the financial sector.

@Lungboy, I am from one of the channel islands and I needed a maintenance loan, applied to SFE and they accepted it, but then withdrew the loan offer after the first installment due to my place of residence (Isle of Man). So I am now left with a debt of £2,000.