Employee Credit Checks

Do I need consent to run a credit check on a potential employee?

Yes, under the Data Protection Act 2018 and GDPR, you must obtain explicit written consent from the individual before conducting a credit check. Our platform provides tools to help you manage and document this consent properly.

Is it legal to perform credit checks on potential employees?

Yes, but only for roles where it is relevant and necessary. Credit checks should be conducted when the role involves financial responsibilities, handling sensitive data, or positions of trust. Ensure that the credit check complies with employment laws and regulations, and that you have the candidate's consent.

What information will I receive in the employee credit report?

The report includes:

• Public Records: Information on County Court Judgements (CCJs), bankruptcies, and Individual Voluntary Arrangements (IVAs).
• Credit Applications: A record of past applications for credit, which may indicate financial stress if frequent.
• Electoral Roll Information: Confirmation of the individual's registered addresses to verify their address history.
• Identity Verification: Checks to confirm the individual’s identity and reduce the risk of fraud.

How does an employee's credit history affect their suitability for a role?

An employee's credit history can provide insights into their financial responsibility and reliability, which is especially important for roles involving financial duties. Significant financial distress may increase the risk of fraud or theft.

How long does it take to get an employee credit report?

Most employee credit reports are available within 24 hours after submitting the request, provided all information is correctly supplied.

How secure is my data on your platform?

We prioritise data security, employing encryption and robust security protocols. Our systems are regularly audited, and we comply with GDPR and other relevant regulations to ensure your data is protected.

Can I perform credit checks on existing employees?

Yes, but you must have a valid reason and obtain their explicit consent. It is advisable to have policies in place that outline when and why credit checks may be conducted on current staff.

What are my obligations under GDPR when conducting employee credit checks?

Under GDPR, you must:

• Obtain explicit consent from the individual.
• Inform them of how their data will be used.
• Ensure the data is stored securely.
• Only use the information for the specified purpose.
• Allow the individual to access their data upon request.

What if an applicant refuses to consent to a credit check?

An applicant has the right to refuse consent. However, you can explain that the credit check is a necessary part of the hiring process for the role in question. If they still refuse, you may choose not to proceed with their application.

How should I inform candidates about the credit check?

You should provide clear information about:

• Why the credit check is necessary.
• How their information will be used.
• Their rights under GDPR.
• Obtain their explicit consent before proceeding.

Will a credit check affect the candidate's credit score?

No, conducting an employment credit check is considered a "soft search" and does not affect the individual's credit score or leave a footprint visible to lenders.

Can I share the credit report with other parties?

No, the information obtained should be kept confidential and only used for the purpose it was obtained for, in compliance with data protection laws.

How often should I update employee credit checks?

This depends on your company policy and the nature of the role. For positions with ongoing financial responsibilities, annual re-checks may be appropriate. Ensure you have consent and inform employees of any ongoing checks.

Are there alternatives to credit checks for assessing candidate suitability?

Yes, you can also consider references, background checks, and interviews to assess a candidate's reliability and suitability for a role. For more information about our background screening services, please get in touch.

What industries commonly use employee credit checks?

Industries that frequently conduct credit checks include:

• Banking and finance
• Insurance
• Legal services
• Government positions
• Security