Reply to: Contractor credit check - FSA requirement?

[radish2008]

oh the irony ...

Back in the same position. Due to start a new contract at same bank after leaving 2 months ago. Spent 13 months working there but need to go through new compliance checks with PowerChex. Have paid the default off and an otherwise perfect credit history. Bumped.another client as I was still in a 2 week zero notice period and rate was 200 pd more. Now am totally panic stricken. I need some therapy I think. Or some beer.

[radish2008]

I think you're right

So, a basic credit check?

Finished the contract I mentioned in my previous post a few weeks ago and having spoken to the agent whilst working there the credit check is looking for CCJs etc and most of the stuff listed above. My default is now satisfied so it may look marginally better but AFAIK the checks were not as detailed as I might have expected.

[TestMangler]

Hi everyone, hope someone can help.
I've been an IT contractor for 5 odd years in banking. Finished my last contract in November and since then have been offered two contracts only to have them withdrawn following a credit check. My credit is clean apart from a £500 CCJ in December 2003. This was paid early 2004 but I've never notified the CRAs about the debt being satisfied. So I have a few questions:

Is this likely to be the cause of the offer withdrawels?
If I notify the CRAs of the debt being paid will this make any difference?
Is there FSA guidelines on acceptance criteria? (the last client told me this wan't an internal thing it was an FSA requirement...I can't find anything specific other than the approved person guidebook)

Anybody else in the same boat?

Good work FSA on regulating banks by the way, I'm sure my £500 uni fees default was a good catch for someone...just imagine if that slipped through

Notifying the CRA's will not do anything. When I had a problem with them earlier this year (they were holding incorrect information), the CRA's were at great pains to point ot that they only hold the information, they do not supply it. You will have to go back to whoever your default was with and have them change it.

I discovered that my credit file was riddled with mistakes like incorrect linked addresses and incorrect payment information about a car loan that expired years ago. Took a few weeks, but eventually got it cleaned up.

[Moscow Mule]

This it what I was told (by the agency) is what they look at when doing a financial check:


Identify any County Court Judgments (CCJs), Court Decrees, Bankruptcy, Sequestration or Insolvency over the last 6 years. For CCJs and Court Decrees the report will also identify the actual amounts involved and whether the debts have been satisfied.

Check electoral register entries for the address provided returning the details found in the public register.

Additional address verifications against Credit and Telephone databases.

Verification of financial accounts found on CAIS linked to the applicant at the address provided.
Identify any alias names used.

Date of Birth verifications against electoral register and credit databases.

Credit searches within the last 6 months, e.g. applications for credit cards.

Any other addresses we find linked to the applicant.

Verification as to whether the individual has been listed for HM Treasury or OFAC sanctions.

So, a basic credit check?

[oflahert]

I've just got a contract with RBS and...

This it what I was told (by the agency) is what they look at when doing a financial check:


Identify any County Court Judgments (CCJs), Court Decrees, Bankruptcy, Sequestration or Insolvency over the last 6 years. For CCJs and Court Decrees the report will also identify the actual amounts involved and whether the debts have been satisfied.

Check electoral register entries for the address provided returning the details found in the public register.

Additional address verifications against Credit and Telephone databases.

Verification of financial accounts found on CAIS linked to the applicant at the address provided.
Identify any alias names used.

Date of Birth verifications against electoral register and credit databases.

Credit searches within the last 6 months, e.g. applications for credit cards.

Any other addresses we find linked to the applicant.

Verification as to whether the individual has been listed for HM Treasury or OFAC sanctions.

[Moscow Mule]

From the horses mouth (as it were)

http://www.fsa.gov.uk/pubs/hb-releas...7/rel27fit.pdf

These are the rules, for approved persons. Some banks insist on everybody being able to pass the tests, some don't give a crap (usually the smaller ones).

Most of the time, you'll be fine if you're up front about stuff. Sometimes you won't, tulip happens.

[bluedrop]

A colleague (contractor) of mine is undergoing background checks for a job with an insurance company in Manchester. He has been living in Scotland for 2yrs now and has a clean credit history here. however, he worked in India for a few yrs before and has a credit card default there. (The bank had put some insurance on his credit card without his approval and he refused to pay for it. That now totals to appx 400$). He has other loans (a mortgage and an auto loan since 4 yrs) which were always paid on time. He is worried to sick now and called me to ask if I think this will cost him his new contract...since they are running international background checks on him..... what do you think friends?

[radish2008]

HSBC Security Check ?

Hi,

I'm in much the same boat - have interviewed and been offered but will be security checked. I have a default (bad circumstances 18 months ago) but otherwise a perfect credit history (I worked for a CRA for 5 years). The role is non-financial so I'm hoping this will be taken into consideration by HSBC. I also have a tiny bit of bargaining tool in that the work involves a very particular niche skillset that I'm hoping might count. I'm prepared to be open and upfront about all the details surrounding the default and have informed the agent. He said a CCJ or bankrupcy order would be a problem but a single default not.

Any ideas/advice much appreciated. The real kicker is that the contract value would allow me to pay every single penny we owe + a big chunk of my mortgage !

Cheers

[kungfu1contractor]

RBS Credit check with status 'referral'

Hi,

Can someone explain how this works: I have been credit checked for an RBS contract and the results are 'referral' - I've now been told by my agency it will take another 24-48hrs for the results to come back again.
Does anyone know what this means?

I have some late payements on my credit file but no defaults or CCJ's. Basically every now and then I have missed paying my credit card bill on time.

I think they use Kroll for the background checks but just curious on what this status 'referral' means and whether anyone else has any experience of this? Should I be worried or does this means there is delay in the credit search that RBS do?

Any advice is greatly appreciated.

Rgds, Haseeb

[Kanye]

Does anyone know what is the situation on this when going through an intermediary such as a consulting company?

I start with an IB on Monday. I have confirmed my work history to the consultancy but no credit check took place as far as I know.

If they turn around and ask me for a credit check I am stuffed. Is it likely to come up at some point in the future?

Thanks -

[Bumfluff]

When banks do a credit check are they just concerned with CCJ's or are they also concerned with late payments ?

Im pretty sure its just CCJ or defaults and not late payments. I've been credit checked for all the 6 finance places that have been my clients, I've had late credit card payments now and again but Ive never had a problem passing a contract credit check. I know some clients if you fail the check and you think your know why like not paying your gym membership by accident will let you off if its something minor but others like RBS are hardcore. It's made me super anal about paying everything on time.

[Sailaway]

When banks do a credit check are they just concerned with CCJ's or are they also concerned with late payments ?

[Menelaus]

A concern I have with the whole CCJ and credit record in general (and it's particularly sensitive in banking) is that it seems to be saying "you cant have a legitimate dispute".

e.g. I employ a build who does a crap job. So I refuse to pay until he puts it right. We are now simply at the point of a legitimate dispute. However he decides to go the court route maintaining it's to standard.

We turn up in court. He happens to win, I shrug my shoulders put it down to experience and pay up when the judgement comes. So I'm now at the least state of noted as a risk (don't know if this would end up as a CCJ but it would definitely be recorded). It's not right.

There's a way of having it removed. If it's satisfied within 30 days of judgment being entered against you, the data can be removed.

Experian (together with Equifax and CallCredit) don't get their records from the courts, they get it from a company called Registry Trust Ltd (here) who have a section on removal of judgments so that they don't appear on your credit file.

It should also be noted, however (and here's the kicker) - I'm currently looking at a file where the existence of CCJ isn't a predictor of risk. In fact, counter intuitively, having a CCJ seems to be representative of the borrower being a better risk. Shocking, eh?

[ASB]

Sorry for the delay in replying to this post HAB.

The question of write-off is one that's come into sharper focus as a consequence of the establishment of the Asset Protection Agency, a quango of HM Treasury to provide a guarantor behind some highly dubious RBS assets.

We need to get into a position where the guidance of the FSA (note, the relevant section of the FIT component is guidance, not regulation) is taken a little more pragmatically.

For example, RBS will accept someone if they've a satisfied CCJ for <£500 that is >24months old (or so I believe).

A concern I have with the whole CCJ and credit record in general (and it's particularly sensitive in banking) is that it seems to be saying "you cant have a legitimate dispute".

e.g. I employ a build who does a crap job. So I refuse to pay until he puts it right. We are now simply at the point of a legitimate dispute. However he decides to go the court route maintaining it's to standard.

We turn up in court. He happens to win, I shrug my shoulders put it down to experience and pay up when the judgement comes. So I'm now at the least state of noted as a risk (don't know if this would end up as a CCJ but it would definitely be recorded). It's not right.

[lje]

Keep away from Experian then, and probably all others of their ilk. They share all the information they get.

Of course they do! That's their business. They sell information.