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Credit checks for job applicants?

Discussion in 'Small Business' started by moyjos, 23rd Sep, 2015.

  1. moyjos

    moyjos Well-Known Member

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    This is from another forum, but I would be interested in people's views on this. I think it borders on discrimination.

    the thread goes on with people asking what sort of jobs....

    Thoughts??
     
  2. Lil Skater

    Lil Skater Well-Known Member Business Member

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    I wouldn't apply, none of their business what I do with my pay packet!

    I'm more than happy to do a police check if required (I have to in my job anyway), but I think my credit rating and ability to budget is beyond what an employer needs to make an informed decision.

    Also, what if you apply for 10 jobs that all conduct credit checks and then you cannot get finance?!
     
  3. EN710

    EN710 Well-Known Member

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    For some high end role and in certain industry, maybe. Dispatch officer and operation manager in cemetery? Nope!
     
    Last edited: 25th Sep, 2015
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  4. geoffw

    geoffw Moderator Staff Member

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    I'm told that a credit check is necessary if you are going to apply for a credit licence or work in a gambling institution. However, Veda, the credit service provider, also have a service where they verify claims made on a resume.

    Credit checks are also done on people applying for security clearances.
     
  5. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    If you were faced with this situation and didn't want them to do a credit check, you could provide them with a copy before hand - saves multiple credit checks when applying for lots of jobs.
     
  6. Kinnon Bell

    Kinnon Bell Finance Broker

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    I think it's reasonable to be done for someone in the finance industry or a position of responsibility - someone's credit report says a lot about their character.

    Imperfect credit indicates past or current money issues. Money does silly things to people and if someone is experiencing financial pressure they may not be thinking straight and try to take advantage of a situation they wouldn't usually.

    When I started at the bank I had to sign a form saying I had never been bankrupt, had a judgement or default but they never asked for proof. When I became a broker and later changed aggregators I had to provide a copy of my credit report on both occasions to show I had no defaults etc.

    That isn't to say that someone's situation won't change if they're hired with a good credit report....
     
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  7. SonOfTrigger

    SonOfTrigger Well-Known Member

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    It's actually called Verify from memory. I've been through the process twice. They basically take your CV and contact prior employers to make sure dates match up. Not sure its really a service I'd pay for personally.
     
  8. spludgey

    spludgey Well-Known Member

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    I think it'd be fair enough for a financial adviser position. But if anything that's not related to the financial sector, I think it's very unreasonable.
     
  9. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    Finance related fields are required to have a credit check prior to employment. Police checks are also required. This is all reasonable, we are in a position with direct access other peoples financial well being, it needs to be established that we're not in financial difficulty ourselves.

    For most jobs out there, completely unnecessary..
     
    Last edited: 25th Sep, 2015
  10. spludgey

    spludgey Well-Known Member

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    Did you miss an "un" there or do you really believe that most jobs should require credit checks done?
     
  11. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I cannot be held responsible for bad spelling this late Friday afternoon...
     
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  12. geoffw

    geoffw Moderator Staff Member

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    Even Harry Potter couldnt "spell" properly some days.
     
  13. pinkboy

    pinkboy Well-Known Member Premium Member

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    Another reason to add to my list of 'reasons why I work for myself'. Probably could get a job.

    Police check and I'm ****ed.

    pinkboy
     
  14. BarneyRubble

    BarneyRubble Well-Known Member

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    Credit checks are standard practice for many companies in the U.S.

    Company I work for does them stateside and talking to my American colleagues they don't seems particularly concerned about it.
     
  15. legallyblonde

    legallyblonde Well-Known Member

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    I agree with the above.... That is such a nosey question! If it was relevant to the job then perhaps it is better to be safe than sorry... But otherwise... Hell no!
     
  16. lost nomad

    lost nomad Well-Known Member

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    Hi Folks

    I'm reviving an old post. I'm job hunting at the moment and I was shocked to see a company demanding* my authorisation for background checks or else I couldn't proceed with the online application.

    They mention medical, drivers licence, criminal AND credit.

    I don't have anything to hide, but its an invasion of privacy and irrelevant for the role (it looks like every role requires this on their site) They also demand* ethnic background, age bracket & current salary. Surely this is illegal?!

    To the brokers on here who have had it done to them, does it show up in the "File Access" section on your report? I subscribe to Veda and have a report as recent as this month.

    Thanks for your help!

    * demand by way of the little red asterisks on selected questions or a tick of a box
     
  17. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    What is the job position?
     
  18. lost nomad

    lost nomad Well-Known Member

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    Hi Corey,

    It's the same questions for every job listed on their site, so it's not like it's for a CFO role etc

    The company is not listed on the ASX, which I thought it may have something to do with it.

    I might call their HR department to have a chat

    Cheers
     
  19. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    Depending on the industry, could be completely reasonable - or over zealous.
     
  20. VB King

    VB King Well-Known Member

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    Fairly common overseas and some markets I've worked in - not in the finance industry by the way.
    Would you employ someone with control over a sizable budget if you knew that someone was under financial pressure is the thinking.