My Employer Wants To Do A Credit Check-Can I Get Sacked?

[mcjohnson]

Elsa - I assume this is why the employer asked the employees to sign an agreement to them obtaining the data. Once you give an employer written authorisation to do something, provided it's not illegal or discriminatory, then there's nothing to stop the employer exercising the right that the employee has granted them.

 

Regarding CRB checks there are actually 3 different types of disclosure, basic, standard and enhanced - each providing a different level of insight into your misdemeanour's. Again, if an employee agrees, there is nothing to stop any employer from any industry undertaking CRB checks. Normally they are taken out prior to the commencement of employment or during the process of re-issuing security badges, for example if you work in any capacity in the secure area in an airport you must have a basic CRB to obtain the relevant security clearance. In the 3 jobs I've had over the past two years, all have required at least a basic CRB.

 

Regarding credit checks, given that the OP has indicated they handle payments and credit card details the company has identified a risk (not necessarily the OP, but that function for that organisation) does exist and the credit check is a way of mitigating that risk. Of course, for prospective employees this is straight forward, as part of the job offer will be dependent on having a credit check undertaken. For existing employees, once permission is sought and obtained from the employees, then all perfectly legitimate.

 

If the OP could advise whether, when the company sought your permission to undertake the checks, did they provide any supplementary information as to how they were going to use the information? For example, if they do find you have a poor credit record how will this information be used? It may very well be worth asking those questions.

 

I would conclude by reminding that all employment contracts include the caveat that the employer retains the right to amend the terms and conditions of employment. If those amendments are reasonable and fair, but the employee (for whatever reason) refuses to accept the changes, then the employee is putting themselves in very real danger of having their contract of employment terminated.

[themagician]

Also, I would suggest you get this thread moved to the employment forum. I can only speak as an employer, but there are people on there who specialise and may prove me wholly wrong.

 

http://www.consumeractiongroup.co.uk/forum/forumdisplay.php?150-Employment-Problems

i already pointed this out but to no availe!.

[DonkeyB]

I think Cagbot tried to move it but failed...

[honeybee13]

Hello people. This thread is already showing on the Employment forum, as of a few minutes ago. I don't know if it's on two forums - I was wondering why I hadn't spotted it before, but I see now.

 

OP, welcome to the employment forum. As DonkeyB said, we have people here who understand employment law. Not me really, I'm just the humble warm-up act . Some of the guys have day jobs and will check in when they can. I hope you'll get some help soon. Don't worry yet.

 

My best, HB

[dadofholly]

Regarding credit checks, given that the OP has indicated they handle payments and credit card details the company has identified a risk (not necessarily the OP, but that function for that organisation) does exist and the credit check is a way of mitigating that risk. Of course, for prospective employees this is straight forward, as part of the job offer will be dependent on having a credit check undertaken. For existing employees, once permission is sought and obtained from the employees, then all perfectly legitimate.

 

MC

 

I appreciate that you are outlining a position here - but can you - or do you have any explanation of why someone with a poor credit history should be more of a risk than someone with a criminal record?

 

Under the Rahabilitation of offenders act - most non custodial sentences will be removed from the basic and standard checks after 5 years - sometimes less. But a credit report may contain info for up to 6 years.

 

You also say that the company has "identified a risk" - Can you explain to me how a company may come to that conclusion? is it off theie own bat or are the CRA's selling their services stating this alleged risk?

 

Where is the evidence that a Poor credit history = higher risk?

 

There is no dispute that some people have taken part in illegal activites due to financial hardship - but equally many people have taken illegal action based purely on greed or from generally being a dishonest individual. So what are the figures that equate poor credit history to higher risk?

 

As regards this processing of credit card details = potential risk. That being the case it would be much better for the company to invest in good data mining software to highlight suspicous activity from both internal and external sources.

 

As i have stated previously i have came accross many people - in senior positions - with good credit histories - who have commited fraud against their companies - i also know of recent cases where the finance director of a leading retailer ripped them off for millions - to feed his lifestyle. And half a dozen senior head office employees at a well known building merchents have done the same. Again i would suspect they all had clean credit files.

 

My issue is Financial Hardship, that may come about for many reasons, does not = dishonest.

 

I have yet to see the evidence that people in this position are a higher risk than those with "good" credit records.

 

There is also the issue of at what level of risk is used to determine the need for Credit Checks.

 

I have known businesses that are carrying out credit checks on people who will not - nor will ever in their role - carry out financial transactions.

 

A recent case in point is a local distribution centre who now checks all its employees - who do nothing more than handle stock - in a confined CCTV covered building. So where is the risk here? again it can only be an assumption that a poor credit history = dishonest.

 

I believe that if we dig deep enough, at the bottom of the pile we will find CRA's peddling this nonsense for commercial reasons.

Edited November 25, 2010 by dadofholly

[count orlok]

Not quite right count o

The full CRB check is for people wishing to work with children and vulnerable adults but I work in the Security Industry and every three years when my SIA licence is renewed I have a CRB check for past offences, I receive a copy of the report

In general companies seem to be tightening their procedures and in this case I really don't think there's anything to worry about but a call to the CAB or ACAS would help to ease doubts

Good luck

R

 

I did mean the full CRB check, I used to work with children and the countess used to work with vulnerable adults so we both had full CRB checks, the other kind will not show up "spent" offences.

[Ell-enn]

I believe that if we dig deep enough, at the bottom of the pile we will find CRA's peddling this nonsense for commercial reasons.

 

Absolutely right - I have received literature from CRA's outlining their employer services ! Needless to say it went in the bin !

[dadofholly]

Absolutely right - I have received literature from CRA's outlining their employer services ! Needless to say it went in the bin !

 

ELL-enn Thanks for confirming my initial thoughts on this - it realy annoys me that they are allowed to get away with this nonsense.

 

Am now going to research it more - Will write to a few people and see if i can get hold of any "research" or other material.

 

If anyone comes by any info, or other evidence of this, including the compnaies using these services, please feel free to PM me as i would be very interested in following this through.

[Ell-enn]

Have a look here: http://www.experian.co.uk/background-checking/employment-credit-checking.html

[dadofholly]

Have a look here: http://www.experian.co.uk/background-checking/employment-credit-checking.html

 

Thanks for that - their unfounded claims are shocking - they are basicly saying dont employ anyone with a poor credit history.

 

You have given me a good starting point - My local MP is an ex Government Minister will start by asking him for his views. This is utterly appaling.

[Undercover-Elsa]

How ironic that in so doing they are pulling the rug from under their masters (the banks and DCA's) feet.

Lost job, in debt, can't pay, now potentially can't get another job to clear the debt because of the bad credit record. That's assuming they could get a bank account to have their wages paid into.

Cardboard box, anyone???

 

Elsa x

[Revenant]

I did mean the full CRB check, I used to work with children and the countess used to work with vulnerable adults so we both had full CRB checks, the other kind will not show up "spent" offences.

 

Morning count

My mistake for thinking you were generalising . . sorry

I dont know about the very basic check but the one for the SIA licence does show past offences and I know of two Officers who were sacked after their very first CRB check in compliance with the licencing as it was found that they had past offences that were not seen as fit for their given employment and they had failed to disclose when appying for the job and submitting to the then standard ten year check

How things are changing eh

R