January 27th, 2012
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All too often businesses fail to carry out adequate verification of identity on clients and sometimes even employees. It is fundamentally important to be aware that there are two key steps to identity verification.
Step 1 – Physical verification
The physical check will include checking a photo ID such as a passport, cross referencing this with other documentation such as an official letter confirming the person’s name and address.
Step 2 – Electronic verification
The electronic verification, such as that carried out by Credit Check Services, will search for identity verifications comprising name, date of birth and address. When multiple records confirm a match there is a higher degree of certainty about the individual’s identity.
Further checks can also be conducted by using the data found form electronic verification to question the individual about their identity. Such data may include applications for credit, alias names, undisclosed addresses, and associations.
For more information on identity verification visit Credit Check Services.
January 24th, 2012
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A question that is often asked by employees, tenants, and others whom have been asked for their permission to carry out a credit check. Here we hope to provide some clarity and dispel some misconceptions.
The basic credit check
The fundamental components of a basic check are identification of any court enforced actions against the individual or data subject. These will cover:
- County Court Judgements (CCJs) detailing the date of the judgement, the amount of the award made, and the court reference. If the CCJ has been satisfied, that is debt repaid, then this will also be recorded along with the date satisfied.
- Bankruptcy order detailing the date of the order, the amount awarded, and the court reference. Unlike CCJs a bankruptcy order will not always have an amount of award associated with it. If the court records show that the bankruptcy has been satisfied then a date will also be given for this event.
- IVAs, these are voluntary agreements for insolvency. Similar to the bankruptcy order there will again be dates and court references.
Additional areas a credit check can cover.
- Risk scores identifying the potential risk of default on financial payments.
- Corrections recorded against an individual’s credit file. For example, someone may feel that a CCJ was incorrectly recorded or that there we other related factors they wish to be recorded.
- Credit searches, normally relating to applications for credit. When someone applies for a financial loan or credit agreement such as a mobile phone account, a search is normally conducted and a record of the event is recorded on the individual’s credit file.
- A summary of financial accounts maintained by an individual at their address, this is sometimes used to confirm an individual’s identity and address history.
- CIFAS records. This is available to members of CIFAS only. The database will record instances of employee fraud and related events.
- HM Treasury and OFAC sanctions lists. These lists maintain details of individuals and sometimes organsiations convicted of fraud, or banned from investment, or suspected of involvement with terrorism (as recorded in the OFAC list).
Personal details on the individual’s credit file not revealed.
Due to data protection requirements details such as whether an individual has missed financial payments, the total amount of credit, and the specific companies providing credit, will not be revealed for the purpose of a tenant or employee credit check. Such details can only be provided in very specific circumstances.
Who should undertake a credit check?
A short answer is any landlord or employer who feels that an individual with adverse financial history will be a risk to their business or customers. There are also regulations that apply to certain areas of employment such as within the financial services sector and security sector.
How often should a credit check be undertaken?
This really depends on the business and the degree of risk mitigation required. It should be noted that a credit check can only ever provide a view for a specific point in time. Adverse financial data is normally removed from an individual’s credit file after 6 years. Additionally a CCJ or bankruptcy order may be pending and could show up against an individual a few months after a report has been provided. It is quite common for businesses to request a credit check annually but in some cases they are conducted every 3 to 4 months.
Impact of a credit check on an individual’s credit file
Every search carried out will leave a record, so whether a search is for employment screening, tenant checks, utility services, or loan application, there will be a record kept. When an individual applies for a loan the lender will normally take into account other credit applications when determining the level of risk. A credit check (as conducted by Credit Check Services) for purpose of employment screening or tenant checks will not affect the individual’s personal credit score or their ability to obtain credit.
For more information on tenant or employee credit checks visit Credit Check Services.
January 5th, 2012
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Some updates for changes affecting UK employment from 2012
EU Single Permit Directive
A “single permit directive” is being introduced within the EU to simplify processes and afford more rights to a non EU national working within an EU member country. The directive will cover aspects such as basic working conditions and recognition of educational and professional qualifications. It is expected that the new directive will be introduced by all EU member countries by the end of 2014.
SSP (Statutory Sick Pay) and SMP (Statutory Maternity Pay)
For 2012 there will be increases in both SSP and SMP rates. SSP will increase from £81.60 to £85.85, an effective increase of 5.2%. The SMP rate will increase from £102 to £107, an effective increase of 4.9%. The new rates will come into effect for all employees from 6 April 2012.
Employment Tribunal Fees
Currently it is free for anyone taking a claim to the Employment Appeal Tribunal (EAT), all costs are met from tax revenues. New proposals are now being considered where either a contribution or a fixed fee is to be paid by the claimant. Under one option the fees will be categorised according to the level and financial amount of the claim with fees ranging from £200 to £1,750.
It is hoped that the introduction of the new fees will minimise vexatious claims however there are some concerns that the level of claims made against employers could rise. The consultation period closes in March 2012 after which more details will be published on the proposed changes.
Employee Compensation for Redundancy and Unfair Dismissal
From 1st February 2012 the basis for calculating minimum redundancy pay will increase from £400 to £430 per week, an effective increase of 7.5%
Also from 1st February there will be an increase in the limit on the amount payable for unfair dismissal from £68,400 to £72,300, an effective increase of 5.7%.
November 30th, 2011
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Over the last 12 months we analysed searches carried out for adverse financial history, that is people who have CCJs, bankruptcy, IVA, or Debt Management Orders. The objective of the analysis was to identify the average frequency of adverse data and also the likelihood of finding the data associated with the individual’s current or disclosed address.
Frequency of adverse background data.
For tenant financial background checks we found that on average there was one instance of adverse data per 9 tenants checked. The highest value of outstanding CCJs found against an individual was £390,767, the lowest value found for a CCJ was just £55, and the average in CCJs outstanding (for a tenant with debt defaults) was £1,903.
For employee financial background checks we found on average a much lower incidence of adverse data with less than one instance per 30 employees checked. The highest incidence was in the security sector (security guarding) where we found 1 in 14 employees with adverse financial history. Conversely within the banking sector we found an average of 1 in 120 with adverse financial history.
Association of financial background data with the current (or disclosed) address provided
We found 47% of adverse financial data incidents to be associated with a previous or non-disclosed address. The incidence is skewed by the tenant sector where individuals move more frequently and thus adverse data is more commonly not associated with the current address provided. This reinforces that need to carry out thorough background checks to ensure that the person provides a valid identity for their current address and also that any searches carried out do include a full linked address search.
July 21st, 2011
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Reported in the news on 21 July 2011 was the issue of whether the office at No 10 should have carried out background checks on Andy Coulson. What would this have found and would it have made any difference to Andy Coulson’s appointment?
Background checks (or pre employment screening) are becoming increasingly widespread in their use for UK employers. Such checks enable employers to investigate and verify a considerable level of background information including information not disclosed by the prospective employee.
If the employment is related to UK Government, as in the case of Andy Coulson, then higher levels of screening can be undertaken, these are: CTC, SC and DV (for more information on security vetting visit http://www.credit-check-services.co.uk/employment/security-vetting.html ). Excluding CTC, SC and DV, the main areas covered by pre employment screening are:
- Criminal background; this can identify information recorded by the courts or by the police ranging from criminal convictions through to arrests, cautions, fines, etc.
- Financial background; this can identify a range of data from civil court enforced debts to debt management orders, credit searches undertaken, account verifications, etc.
- Qualifications and professional memberships; these can be verified for legitimacy.
- Employment history; this can range from confirming periods of appointments and salaries through to performance related information.
- Identity; verification, immigration status, and the right to work in UK.
- Sanctions; to confirm if the individual is subject to any UK or national sanctions, typically HM Treasury and the USA OFAC databases.
- Company legal appointments; identifying current and past appointments and any disqualifications (e.g. from appointment as company director or company secretary).
By carrying out higher levels of security screening (CTC, SC and DV) the investigation extends further to cover the financial situation of the applicant, information on family and relatives, and any information that could be considered to put the applicant in a position where they could be influenced to undermine their employment, for example being bribed to obtain information for a third party.
July 14th, 2011
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Following recent news headlines about journalists illegally accessing personal data there has been much discussion about the “fit and proper” test and in particular how such a test could be applied by Ofcom with respect to the future ownership of BSkyB. So what is a “fit and proper” test?
Fundamentally a fit and proper test is subjective, it is applied in context of a role or position to be undertaken. For example if you were to apply such a test to a Doctor or GP then it would be very different to a fit and proper test of someone who is to control a large media organisation.
For some employment roles the fit and proper test has been developed and documented with detailed guidelines. The FSA for example has already dealt with the issue of a “fit and proper test”, comprehensive details are published in the FSA handbook. The FSA test, which is applied to all FSA approved persons, is based on the underlying principles of honesty, integrity and reputation. The FSA fit and proper persons test covers a wide range of factors including:
- Criminal background checks
- Financial background checks
- Training and qualifications to perform a regulated role
- Previous experience to support employment in a regulated role
- Previous complaints of misconduct in regulated activities
- Directorship or partner of any business that is or has been subject to investigation by a regulator
- Previous employment history and in particular any instances of dismissal or forced resignation
For more information on fit and proper tests for employees visit http://www.employmentscreening.co.uk/fsa-fit-and-proper-persons-test.shtml or call Credit Check Services on 01992 719 234.
June 2nd, 2011
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As part of our ongoing effort to deliver an industry leading quality of service for employment screening we are pleased to announce an upgrade to our order management system.
The main objective of the latest upgrade is to reduce the administrative time needed by our customers to carry out employment screening. The changes to our order management system enable employees to submit their details online without the need to process forms and data via administrative teams or Human Resources departments. The system update covers all areas of pre-employment screening including BPSS, BS7858, criminal records checks, financial background checks, employment history verifications, qualifications, and professional memberships.
We are also planning further service enhancements to help ensure that our customers continue to receive the highest levels of service.
For more information on the services we provide visit www.credit-check-serivces.co.uk or www.employmentscreening.co.uk. Alternatively please call our offices on 01992 719 234 and we will be happy to discuss employment screening services available and how these may be applied for your company or organisation.
May 20th, 2011
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Customer satisfaction is immensely important to us at Credit Check Services, not just because it is a key factor for our ISO 9001 certification, but more importantly because satisfied customers continue to use our employment screening services and also recommend our company to others.
Every month we carry out surveys in four main categories to assess any specific areas where we can improve and to assess overall customer satisfaction.
For the last year we have maintained an “overall satisfaction” ratio of 100%, and allowing for any specific areas regarded as “poor” we have achieved an overall rating of 98.3% satisfied. [ figures correct as of 30 April 2011 ]
Whilst our overall satisfaction ratios are very high we also recognise that we are not perfect and we will always seek feedback on how we can improve. Even if you are not yet a customer of ours we would very much appreciate feedback, even if it is just about how helpful you find our websites; www.credit-check-services.co.uk and www.employmentscreening.co.uk
March 30th, 2011
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During March 2011 several of the online reports were upgraded to further enhance the service we provide to our customers.
The Gold and Platinum tenant check reports now include a new and enhanced risk score analysis based on an individual’s probability of meeting financial payment commitments. Additionally we have now included CAIS financial account verifications for both of these reports. Finally, for our changes to tenant checking services, the Platinum report also now includes OFAC and HM Treasury sanctions list checks, these cover sanction checks including those involved in serious fraud and those suspected of supporting or funding terrorist activities.
The Employment screening financial background check has also been revised to include the new CAIS account verifications and both OFAC and HM Treasury sanctions list checks (previously this report only provided HM Treasury sanctions checks).
For those who have not yet used our services we also include a search for linked addresses in all online screening reports, this technique helps to ensure that any history of CCJs, bankruptcy or IVAs will be found. If you would like to know more about our background screening services please call Credit Check Services on 01992 719 234, or visit our main website at www.Credit-Check-Services.co.uk
March 7th, 2011
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At Credit Check Services we are continually researching new sources of data and developing the services we provide to meet the needs of our customers. One of the new reports due to be launched in March 2011 is the Customer Credit Check report. The current report has been very popular and used by many commercial organisations to screen customers for assessment of an individual’s ability to meet repayments. One of the key changes with the new report is the inclusion of a risk score. The risk score is broken down into 5 categories from very low risk to very high risk, each category providing an assessment on an individual’s relative risk for meeting their commitment for financial repayments. In addition to the risk score the new reports will provide a range of other key data:
- CCJs and Court Decrees
- Bankruptcy or Sequestration
- Voluntary arrangements for insolvency
- Public electoral register check
- Sanctions check (HM Treasury and OFAC lists)
- Identity verifications
As with the current customer screening reports the new report will be available to purchase online with discounts provided for higher volume orders. We expect the new reports to be available from the end of March 2011 and are confident that they will be of great benefit to our customers.
If you would like to know more about the screening services available for retailers, landlords and employers visit the Credit-Check-Services.co.uk website or call us on 01992 719 234.
