Panicking about credit check for job

[FizzyJuiceJunkie]

I have a really strange situation with my credit file. I’m moving to a new role within the firm I am employed by currently, but because it’s a different location, they need to re-do some background checks including a credit check.

I have no CCJs, no involuntary agreements, no bankruptcies, nothing of that kind to worry about. All bills paid in time, no credit card at all.

HOWEVER, there was one missed payment to o2 around 3 years ago. There was an issue with my bank account when I was out of the country for 4 months and the direct debit didn’t go through. Since I wasn’t in town, I never knew and by the time I returned around £100 had gone into collection.

I paid the collection agency as soon as I found out what had happened and they said they would alert the credit reference agencies that the default had been paid off.

The utterly bizarre thing is that the default never showed up on my credit file. I checked with all three agencies, and even called Experian and Equifax to see if they could do some extra searches. But nothing came up- not the actual default or the record of it having been paid off.

I worried endlessly, but I remember I passed the background and credit checks when I first joined the firm about 15 months ago. I also passed a check from Vodafone and a letting agency since then. So i have assumed until now that the default is just not on my file, otherwise I couldn’t have passed all these checks.

Now that I have to go through another credit check for a much-awaited job offer, I am starting to worry again! Is it possible that the default will show up after all this time? Or can I assume that it just isn’t there? I remember o2 said that the collection agency would put the default on my file because I was never actually issued with a default notice. The collection agency on the other hand said they don’t add defaults, the usually just update the ones already added by o2. So perhaps it was crossed wires and nobody added the default to my file?

Because honestly, I’ve actually gotten Experian to check against each of my addresses and they couldn’t find anything!!

1 default 3 years ago wouldn't cause any issues. Also most jobs do a credit check for id purposes they don't care what's on the record and I think an id credit check is limited in what they can see anyway. Don't panic! Also the default may well have been swiped off before it hit your record if it was paid fast enough. It certainly wouldn't randomly show upnow.

You have absolutely nothing to worry about with this. Compared to some credit checks you look like a Snow White.

Don't worry. I've just got a job in a bank and had a credit check first. I was v nervous because I'm rubbish at remembering to pay bills which is why everything is on Direct Debit. I've had a clean sheet for a couple of years but lots of slip-ups in the years before. Passed credit check though!

Unless you work with a LOT of money in finance you have nothing to worry about.

Maybe they removed the default, or it didn't even go to default.

If it's financial services they're only looking for IVAs and bankruptcy (and possibly CCJs). If it's anything else then as a PP says it's probably just for ID. Don't worry!

It won't be a problem. That is a good credit report.

What a relief! Thank you everyone.

I'd worked myself into a tizzy over this.

DJThreeDog- well, it is a lot of money. However, the background check declaration questionnaire doesn't expressly ask anything about defaults.

I'd be surprised if this caused a problem - I'm in financial services and they're normally only looking for serious problems like bankruptcy, IVA etc. 1 default 3 years ago is unlikely to trigger concerns.

You honestly won't have a problem.

I had a job where I was credit checked, and had a ccj, it was incurred due to not receiving a parking fe in the post then being taken to court. It was settled and fully sorted, I explained the circumstances to the company and they were happy to let me proceed.

Do you reckon I need to say something about it as well?

I just don't see the point of clarifying a default that-

1. Wasn't my fault! And I was never actually even issues a default notice for it
2. It isn't even on any file that I can see.

I'd just feel like an idiot telling them about a £100 default that for all practical purposes I cannot even see

No. Say nothing about it. You have no problem with your credit file at the moment, so don't set out to make one.

Should also have said, it is a non-issue. Leave it as one.

There won't be a problem. Don't worry.

If it's within finance they look for evidence you're 'not a payer' (ccj etc). If you're working with the finances of the vulnerable then they look to see if you're potentially 'pressured' by your situation (high debt gor income).

I've found hot that Hire Right do the credit checks.

Any chance someone on here works/has worked for them and can tell me exactly what they look for?

Thanks everyone for the advice and reassurances.

One of my friends advised me today to declare this to HR anyway - should I? Sorry to be asking the same question again, I'm just really stressed

I really wouldn't say anything. It's nothing in the great scheme of things - it's pretty easy to rack up one default and I would expect a great many people have one by accident or carelessness. It doesn't indicate a problem with your finances so it won't be an issue.

And anyway, why stress about it? Either it's an issue or it's not. Either way you'd have the chance to say something if it ever comes up.

I've checked Experian and Equifax again- still no default on the file. That's why I don't want to declare something that isn't visible to me.

On the other hand, I do have documents from the collection agency stating that there was a default which has been paid off and they will inform the reference agencies. I find it hard to believe that something like this can just disappear from the radar and that's why I'm stressing.

If anyone has ever worked with Hire Right and they can clarify what they actually look for in a background check, it would make things much easier.

So if the default came up, would they give me a chance to explain it? Or would they just terminate my employment ?

Anyone? -:(

STOP PANICKING.

You're focussing on this far too much. It doesn't matter. How exactly is it likely to come up, really? The default happened, you paid in full. It's not going to find its way to your credit record now - why would it? Someone obviously made a mistake in not recording it, but the company will have no interest in recording it now. There's no outstanding debt.

Seriously, is there something else going on, OP? You do seem to be obsessing over this unnecessarily.

Most jobs check this to ensure not close to brankruptcy, I work somewhere where the person failed due to unpaid bill and they let them provide proof they'd paid it off.

I declared ahead of time because it was something that was quite major.

In your circumstances I wouldn't say anything. They won't just fire you for one default, if they ask you can explain. CHILL!