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.
If you would like to know more about the research please contact Credit Check Services, service@creidt-check-services.co.uk
