Credit Checks for Contracts

[Bigfellow]

Although I have been an IT Contractor in the Financial Sector for nearly 30 years, I have recently had a contract offer retracted due to the fact that I failed a credit check. This failure was the result of a dispute with CSA regarding child maintenance payments which resulted in me getting CCJ awarded against me.

While I accept that I am somewhat to blame for this, I am extremely concerned that the judgement will seriously restrict my ability to find contracts in the future. Particualry as my poor credit history has no influence on how I perform my role. My professional integrity is being brought into question without due cause.

Having investigated the reasons why Financial Institutions are now applying credit checks to contractors, it would seem to stem from the FSA implementing the 'Fit and Proper Persons' test, which specifically addresses the issue of 'financial soundness'. However, the FSA guidelines clearly only apply to those individuals who perform a 'controlled function'. Given the fact that as a Test Analyst, I do not perform a 'controlled function', the FSA test should not be applied.

After contacting the FSA, they are adamant that it is not their checks that are preventing me from getting a contract in the Financial Sector, therefore, I can only conclude that either it's the Financial Institutions own checks or that they are misapplying the FSA checks, either way it does not help me.

It has occurred to me that I am probably not an isolated case and I would be very interested in hearing from anyone who has suffered, or knows of other instances where this has happened. In the United States, a law was passed in 2002 preventing an individual being discriminated against based on Credit History. I believe there is an argument that a similar law ought to be introduced in the UK to prevent this situation from happening. Many gradates are now leaving university with mountains of debt and poor credit history is becoming commonplace amongst graduates. The situation can only get worse.

I have already brought this to the attention of my local MP and am hoping that he can bring pressure to bear on the Banks to be more pragmatic in their selection process.

Any advice or suggestions anybody has to offer would be greatly appreciated.

BF

[northernladuk]

If the banks cannot discrimiate using credit history how can they protect themselves from the less scrupulous people that would abuse their position in a finacial institution becuase they have/had debts or poor money management?

[SueEllen]

It has occurred to me that I am probably not an isolated case and I would be very interested in hearing from anyone who has suffered, or knows of other instances where this has happened. In the United States, a law was passed in 2002 preventing an individual being discriminated against based on Credit History. I believe there is an argument that a similar law ought to be introduced in the UK to prevent this situation from happening. Many gradates are now leaving university with mountains of debt and poor credit history is becoming commonplace amongst graduates. The situation can only get worse.

I have already brought this to the attention of my local MP and am hoping that he can bring pressure to bear on the Banks to be more pragmatic in their selection process.

Any advice or suggestions anybody has to offer would be greatly appreciated.

Why should banks, other financial institutions, the government and the defence sector employ people whose history shows they are more likely to be tempted to do things to get out of a financial mess?

They have enough problems with people who don't have anything on their financial records.............

[HairyArsedBloke]

I have already brought this to the attention of my local MP and am hoping that he can bring pressure to bear on the Banks to be more pragmatic in their selection process.

That's the advantage of Bobs; none of them fail credit checks.

[cojak]

And what's pragmatism got to do with it?? It's a buyer's Market.