Hi all,
It's been a while since I last visited the forum, but I'm hoping the experts can once again advise and steer me in the right direction.
I signed into a Trust Deed way back in 2008. All went smoothly and I was successfully discharged in 2011. In 2014, the Trust Deed fell off my credit report and not long thereafter I managed to get accepted for a mortgage. At that point I felt that would be the final hurdle as far as my Trust Deed was concerned, but now I have another potential issue to overcome.
As of today, I've received a formal offer for a new job. As is very often the case these days though, there are a series of background checks the company are going to perform - one of which is an adverse credit check. The check will be carried out via Experian and from what I can gather, it's designed to flag up things like payment defaults, CCJs, bankruptcies, voluntary arrangements etc :-
http://www.experian.co.uk/background-checking/pre-employment-credit-check.html
At first I wasn't too concerned about this, given that my Trust Deed is quite far in the past and no longer appears on my credit file - but now I'm wondering if this particular kind of pre-employment screening would flag up something like a Trust Deed regardless of how long ago it was?
I'm thinking the best course of action is probably for me to just be completely honest with my new employer and let them know about the Trust Deed up front, explaining how it was a pro-active means of resolving a set of problems that otherwise would have spiralled further out of my control. At least that way, the information is something I've volunteered and if anything, the credit check will only back up what I've told them. I would hope that they wouldn't view this too negatively and (crucially) that it wouldn't then lead to the offer of employment being withdrawn.
Just wondering if this is a scenario anyone else has faced, and if so what the best advice would be?
Many thanks in advance!
Hi icville
I don't know 100% from a credit check, however the credit reference agencies do not show the trust deed after 6 years. the defaults would also have fallen off.
Late (evenslightly) late payments will show up.
If they search the AIB register you would not appear Your name disappears a year after your Trustee is discharged.
However the Edinburgh Gazette remains a thorn in the side of those who were registered around that time. It is a permanent record (100years I think) and there does not seem to be anything to be done to remove our names. More recent records are not recorded any more.
It will depend who is doing the check and what they actually check. I had a look at the link. Dated 2012 reporting problems from 2010. They mention using Private Databases, so that might mean individual companies maintaining longer records. Equally, it may not.
Has the new employer asked you if you have ever been bankrupt or had a payment arrangement etc? Did the offer say subject to satisfactory financial check?
If you think the offer may be withdrawn, I would probably call the HR Manager to explain as you have suggested. The other alternative is to keep quiet, wait to see if anything transpires. if there is a problem with the check you could reasonably say that you understood it was some years ago and it had been removed from your file so you did not think it would have affected the check and then explain the circumstances.
Good luck! I hope it all works out well for you.
Thanks for coming back so quickly Firewalker - appreciated.
The question of bankruptcy has not come up specifically (or indeed, at all) - however my formal offer of employment letter contains the following two statements :-
"We consider that significant levels of personal debt or other financial difficulties create a risk of theft or fraud by employees."
"If these vetting checks return adverse findings, we may withdraw any offer of employment. If you are aware that there is the likelihood that any adverse records will be found as part of these checks you should declare this information as soon as possible."
The second statement above is what makes me think it might be best just to be up front and honest with them. Equally though, I don't want to risk shooting myself in the foot by volunteering information about my Trust Deed if it's unlikely to show up in the checks.
It's a tricky one, but I'm veering towards thinking that honesty would be the best policy here?
The other issue I have is that I really don't want to hand in my notice to my current employer before I know whether or not this credit check is going to put a spanner in the works!
Hi imcville
It is a difficult one and only you can decide on balance.
They say they MAY withdraw the offer. They are asking you to declare anything that is likely to come up.
It would be ideal if you have fully up to date credit payments and no late payments at all. they say that they consider excessive levels of personal debt create a risk.
If you do not have significant levels and all payments have been made on time it will strengthen your case if you call them and explain it was some time ago, it was a proactive way of managing the situation (and indeed something to reassure them that you did not choose fraud or Bankruptcy - you choose to take the option available where you paid back to your creditors.
And if you are calling them to discuss, it is only reasonable that they appreciate you will not submit your notice until they confirm the offer is firm and will not be withdrawn. So the sooner you deal with it the better.
I don't envy you - it is your choice.
Please let us know how you get on.
Hi,
Currently my credit report is clean - no late payments at all, plenty of settled accounts and a fairly modest amount of non-mortgage debt outstanding. Nothing much to worry about on that front I would hope.
I think I will declare the situation to them and make it clear that I am doing so in the interests of transparency, given that their checks may flag up the Trust Deed, even though it no longer appears on my file.
I hope they will appreciate this honest, pro-active approach...!
Thanks again for your comments and advice!
Hi imcville.
I hope you're well?
I doubt the credit report is going to turn anything up in connection to your trust deed.
As mentioned however, there is a public record still available on the Edinburgh Gazette if someone has the knowledge to go looking there and the motivation to want to do so. How likely is that?
As the purpose of the credit check is to control risk, and you do not pose an additional risk (per their definition) currently, it's hard to see why they'd be overly concerned about things that happened in the run-up to 2008.
Indeed, they may view openness and honesty on this subject as being a very positive thing if you declare it - a reduction in perceived risk.
However, as we've discussed here before, most people have little idea about personal insolvency and some may have preconceived notions that aren't positive.
A difficult one to weigh up.
Hi imcville,
I think honesty is the best way forward. Who knows what private companies maintain in terms of financial records or back ground checks. The link to the Gazette could be key in this and a Google search of your name may throw this up easily.
Going in your favour is none of it is showing on your credit report, you are 8 years from that point in your life you had to sign a Trust Deed and are now financially secure with a mortgage.
Good luck and let us know how you get on.
David is not currently posting in the Trust-Deed.co.uk forum
HI David
Just for information, the link for search engines through The Gazette is removed after one year and 3 months so a general internet search will not provide it from The Gazette.
However, if the Romanian site has already captured the file, it could show up through them. (globe24h if I remember correctly).
I believe everyone should do a Google, Bing etc. search of their name and town and see what comes up beyond Facebook and LinkedIn. That's how I knew the Romanian site had my details.
Then the individual needs to approach Google under excessive use of private information, and if unsuccessful, through the ICO.
Returning to the background checking, I would assume (reasonably) that the companies used are experts at this and will know about the Gazette records. If they go onto the Gazette website, and search a name it comes up quickly and clearly. Far easier than the ROI I have to say. If you have a client re4gistered prior to 2009, put in his/her details and see how easy it is (assuming you have not tried it already).
I wouldn't be at all sure that this is included in the checks that employers are paying credit reference agencies for Firewalker.
I doubt there is any manual input - I'd imagine that it's simply producing an automated credit report similar to the one you could order for yourself. I might be wrong.
It is of course important for people to understand that this Gazette entry can still be found for anything but fairly recent trust deeds.
I imagine a credit check and disclosure check bundled together and very little manual input as Trust Deed Adviser suggests.
Will be interesting to hear the outcome, imcville - keep us posted?
Hi guys,
Delighted to report that all went well. I disclosed all details of the trust deed to my new employer and their initial reaction was that it was unlikely to be an issue.
A couple of days later I received confirmation that they were satisfied with the credit check and that the offer of employment was in no danger of being withdrawn.
Thanks to all for the advice and assistance here.
Cheers.
Hi imcville
I am truly delighted for you. I hope you love your new job!
Fantastic news! Good luck with the new job.
Perhaps a little celebration this weekend is in order.
David is not currently posting in the Trust-Deed.co.uk forum