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Archive for January, 2012

How to conduct identity verification

January 27th, 2012

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.

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Tags: identity checks Identity Verification

What is in a credit check?

January 24th, 2012

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 , specialists in the background screening of individuals.

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Employment News Update for 2012

January 5th, 2012

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%.