Pre-employment credit check - Challenger Bank

tokyo2020

Hi, 

I have a 8 defaults that are due to drop off my credit file (some satisfied & some still to be paid but have plans in place).

I already work in Financial Services but have applied for a job in a challenger bank and concerned that their pre employment screening will show my defaults and impact the prospect of employment.

I've seen a variety of replies within older  threads which highlight that some known high street Banks do perform a full search and this would be a no go, where as others say that defaults do not show on the reports carried out.

In previous contracting roles for Banks over the years this hasn't impacted me and checks have been performed - although I've read that checks for non - permanent staff aren't as thorough. 

Does anyone have any recent knowledge if this may impact me and what the screening results may return as I believe they use a 3rd party client?

I do not have any CCJ's, Bankruptcy  or IVA's and only the defaults mentioned that most will fall off by early 2022.

I'm prepared to share this if the questions are asked about Defaults and or missed payments, but surely this is a lot more common with the climate over the past few years and some leniency and discretion is taken into consideration?

Thanks for any responses.

Marcon

tokyo2020 said:

Hi, 

I have a 8 defaults that are due to drop off my credit file (some satisfied & some still to be paid but have plans in place).

I already work in Financial Services but have applied for a job in a challenger bank and concerned that their pre employment screening will show my defaults and impact the prospect of employment.

I've seen a variety of replies within older  threads which highlight that some known high street Banks do perform a full search and this would be a no go, where as others say that defaults do not show on the reports carried out.

In previous contracting roles for Banks over the years this hasn't impacted me and checks have been performed - although I've read that checks for non - permanent staff aren't as thorough. 

Does anyone have any recent knowledge if this may impact me and what the screening results may return as I believe they use a 3rd party client?

I do not have any CCJ's, Bankruptcy  or IVA's and only the defaults mentioned that most will fall off by early 2022.

I'm prepared to share this if the questions are asked about Defaults and or missed payments, but surely this is a lot more common with the climate over the past few years and some leniency and discretion is taken into consideration?

Thanks for any responses.

If most of these are due to drop off your credit file next year, they won't have been clocked up in the past few years, so I don't think the recent climate is an argument which will wash. Eight defaults is a lot, whatever the reason behind them.

Without knowing the bank in question, it's hard to answer helpfully, other than to comment that permanent employees are likely to be subject to more rigorous screening than temporary contractors. 

I think the light on the horizon might be that you are, from the sound of it, now managing the situation well. If the credit check does give rise to concerns, you should be well placed to give a full account of yourself, including details of the 'plans' in question to pay these off.

Fingers crossed for you!

Sandtree

tokyo2020 said:

I'm prepared to share this if the questions are asked about Defaults and or missed payments, but surely this is a lot more common with the climate over the past few years and some leniency and discretion is taken into consideration?

Do you think there is a shortage of potential employees that they would need to show discretion to fill poisons? 

Regulations require financial services companies employ appropriate members of staff given many will have access to other's funds etc. Similarly some may also argue the more moralistic aspect of you being in a job telling people they must pay their debts when you yourself are being pursued for non-payment.

If you are already in the industry and your issues existed before starting with your current employer then in theory you've little to be concerned about however in reality appetites do vary between companies and what is acceptable to one may not be to another.

Ultimately apply, just hold off on the resignation until the checks are complete.

tokyo2020

Do you think there is a shortage of potential employees that they would need to show discretion to fill poisons? 

Who knows?  Of course there isn't of shortage of squeaky clean applicants, but just a thought that thousands of people will have missed payments and got into real difficulty this past year and a half (does not apply to me as my mishaps are half a decade old) and wonder if institutions may one day factor this into their overall judgment?

Regulations require financial services companies employ appropriate members of staff given many will have access to other's funds etc. Similarly some may also argue the more moralistic aspect of you being in a job telling people they must pay their debts when you yourself are being pursued for non-payment.

The role is within an analytical capacity, so not telling people they must pay their debts - but I understand the point made and had a similar view when one had the cleanest of credit ratings!

I just find it strange that some responses from other threads (not yours) seem to come from a "looking down" perspective and sweeping statements that may deem a person not suitable for a role and that they may be deemed a higher risk.

Off topic slightly but not all mistakes deem a person to re-offend - even if statistically the % is higher. 

Some people simply do not get caught, brushed under the carpet and of course there will be thousands of first timers who will find themselves in a similar scenario  

If you are already in the industry and your issues existed before starting with your current employer then in theory you've little to be concerned about however in reality appetites do vary between companies and what is acceptable to one may not be to another.

Ultimately apply, just hold off on the resignation until the checks are complete.

Yes, that's ultimately the consequence I'll have to face should it arise,

Appreciate your Sandtree and Marcon - have a great week.

Sandtree

tokyo2020 said:

wonder if institutions may one day factor this into their overall judgment?

You'd probably be waiting for a change by the regulator rather than institutions themselves... changes can happen but not always for the better. An ex-colleague had been the sole director of a tiny entity in run off in Europe... was a 4 day a year part of his wider role and after 15 years or so in the job the local regulator contacted them advising that under new regs he had to be authorised as a suitable person but looking at the requirement and despite almost 30 years as a director (was mid 60s) in Financial Services he didn't have the degree level education required by the rules.

For the regulator to take a step to loosen the controls you are either looking at a serious issue hiring staff starting to emerge (credit crunch didn't cause such a change) or a major change in the general thought of debt/non-payment by society at large.