Reply to: Credit check before interview

[kevpuk]

<snip> one day he hands in his notice as he has secured a £850/day (2 year role) to manage a project in another one of the banks divisions (You can swap from permie to contractor is you swap divisions<snip>

IR35!!!
Still, never came to be an issue - silly man!

[tarbera]

Almost forgot a classic

We had a senior Pemie Project Manager 15 years at the bank that nobody liked (one of the chaps we escalated failed contractors credit checks to), always ranting and contractors earn this give nothing back etc, rant rant contractor rant, one day he hands in his notice as he has secured a £850/day (2 year role) to manage a project in another one of the banks divisions (You can swap from permie to contractor is you swap divisions), 3 weeks down the line he failed the credit check and got booted out the door same day.

I sent him a text asking him if he wanted me to escalate

I perhaps should not put 2 smiley faces after the text

[eek]

I don't agree, switch it around. Would you employ someone to look after your finances who has a history of not being able to manage money and is looking for any opportunity to find money to pay their next bill? Desperation can make even decent people go bad.

It shouldn't be the only decision but should be reason enough to not take someone on if clear warning signs are evident.

or would you employ someone to manage / investigate (business analysis) / build a project who wasn't even organised enough to make sure bills were paid on time or committed to do things and then failed to deliver on time.

[LisaPC]

I don't agree, switch it around. Would you employ someone to look after your finances who has a history of not being able to manage money and is looking for any opportunity to find money to pay their next bill? Desperation can make even decent people go bad.

It shouldn't be the only decision but should be reason enough to not take someone on if clear warning signs are evident.

I think you just agreed with me What I was saying was that while I know I'm honest, a prospective client doesn't, therefore has to rely on the information available, that being credit and CRB checks. So if an agent lets me know that a gig is with a financial client, I'll let him/her know that it's pointless going any further as I'd be unlikely to pass a credit check. That way, there's no more time wasted.

[northernladuk]

While I think it's unfair to judge someone's honesty on their ability/willingness to pay bills (mine is littered with rubbish due to not earning enough money in my last permie job - thankfully it's now back under control) I would rather know in advance that I wouldn't get the gig, rather than spend time preparing, attending an interview, being offered the contract, only to have it withdrawn following a credit check.

I know that I wouldn't siphon a shedload of money from a client, but they don't know me, and the only thing they have access to on which to base such a judgment is my credit record and a CRB check. I just don't apply for anything in financial services.

I don't agree, switch it around. Would you employ someone to look after your finances who has a history of not being able to manage money and is looking for any opportunity to find money to pay their next bill? Desperation can make even decent people go bad.

It shouldn't be the only decision but should be reason enough to not take someone on if clear warning signs are evident.

[MaryPoppins]

I would rather know in advance that I wouldn't get the gig, rather than spend time preparing, attending an interview, being offered the contract, only to have it withdrawn following a credit check.

As far as I understand it, most agencies perform credit checks on contractors. So you should have some idea.

[MaryPoppins]

I'm not sure how far they go for FSA Regulated roles so I could be talking tulip!

No credit check whatsoever, but I can't speak for all in the FCA/PRA obvs.

[LisaPC]

While I think it's unfair to judge someone's honesty on their ability/willingness to pay bills (mine is littered with rubbish due to not earning enough money in my last permie job - thankfully it's now back under control) I would rather know in advance that I wouldn't get the gig, rather than spend time preparing, attending an interview, being offered the contract, only to have it withdrawn following a credit check.

I know that I wouldn't siphon a shedload of money from a client, but they don't know me, and the only thing they have access to on which to base such a judgment is my credit record and a CRB check. I just don't apply for anything in financial services.

[ExPermie]

1 default 6 years ago for £300 on a store card he forgot about, he lost a £200K a year contract and got kicked out also despite working for bank for 3 years.

Yep, I can believe that too! MSE forums is littered with folk who were declined mortgages because they forgot about hundreds of pounds on a store card etc.????

LOL!

[tarbera]

Simples

That seems very high. Are you saying that 40% of contractors have CCJ's, are bankrupts, or have criminal records?
What other criteria, if any, would cause a credit check failure?

90% of people who failed just had 1 default (no ccj, no crimbo etc) 1 chaps ex-wife had the default but was in joint names, one chap changed banks and not all his DD were moved so a credit card firm was trying to take money from old account (the bank i was hiring him from admitted the mistake) but default was lodged and offer was withdrawn (we did try to escalate but every time it was a big fat no), another chap working for the bank in Amsterdam on Dutch contract for 3 years delivering project after project wanted to work for same bank in London, so we moved him to UK contract (he had atually been sitting in bank in UK working for 8 months we were just moving contract) - 1 default 6 years ago for £300 on a store card he forgot about, he lost a £200K a year contract and got kicked out also despite working for bank for 3 years.

[ExPermie]

Definitely happened - I still have the emails from the initial merry go round with Spring (agency).

What you say is very interesting. Is it possible it was a mistake and someone has hit the full check button? Is it that simple? I can't remember entirely but if it helps I think I was told it was a check akin to that used when assessing loan applications, mortgages etc.

Even Letting Agents and also the likes of PowerChex like to think they have such power but they don't. However, what they can do (like anyone else can) is have a look to see if you have DMP, CCJs against you or are a Bankrupt.

Personally, I think you were led up the garden path. But get your credit file and make sure a missed payment didn't progress to a default and then to a CCJ.

I'm not sure how far they go for FSA Regulated roles so I could be talking tulip!

However, back in 2008 I had SC Clearance via the Metropolitan Police Authority, the 'security' chap who helped me fill out the forms told me not to worry about 'missed payments'............and I had loads of missed payments over a 6 year period back then! I was totally tulip with cash!

[eek]

That seems very high. Are you saying that 40% of contractors have CCJ's, are bankrupts, or have criminal records?
What other criteria, if any, would cause a credit check failure?

It could be a self selecting group of people due to the rate being low and a desire for them to break into banking (why you would want to I don't know nor understand)...

[KentPhilip]

With 40% of the PM's/BA's I offered contracts to last year failing the credit check ...

That seems very high. Are you saying that 40% of contractors have CCJ's, are bankrupts, or have criminal records?
What other criteria, if any, would cause a credit check failure?

[Mephisto]

Probably a good idea to look at your own credit file because, as I've mentioned before, non finance application credit checks do not highlight missed payments. Only CCJs, DMPs, Bankruptcy type tulip gets flagged up!

When I write non finance application, I mean checks which are not for taking out loans/credit. Loan Application checks take into account debt leverage and repayment history which then produces a score to enable a decision.

I know of no place which uses scores for interview purposes?? Checks yes, but not full blown credit/debt/repayment history searches which are solely for lending decisions, not for employment decisions???

Definitely happened - I still have the emails from the initial merry go round with Spring (agency).

What you say is very interesting. Is it possible it was a mistake and someone has hit the full check button? Is it that simple? I can't remember entirely but if it helps I think I was told it was a check akin to that used when assessing loan applications, mortgages etc.

[PEEL]

It's a joke this it really is and it's becoming another CV filtering excercise.

It depends on what sector the client is. For financial services credit checks make sense. There is a higher risking 'employing' someone who misses payments and has trouble securing lines of credit, largely because they may attempt to be fraudulent in some way or other. The trader who cost UBS 2bn and a bit had gambling troubles in his personal life which may have been discovered through a credit check. It's not likely to happen, and it's not likely a credit check but prevent it, but regulators in the financial industry and really big on things like this at the moment.