Hi all. I just accepted an offer with a Big 4 and I am extremely concerned about the implications 3 defaults (4-5 years old) on my credit record might have on my background check. I have filed basic disclosure and references checks, and nowhere in the offer pack is there any mention of credit check, but I am expected to complete a fit and proper disclosure which might entail allowing them to contact a credit reference agency. - do the defaults matter (I am not in an audit service line)?- if I were to pay them would it I pass with no issuesIt is incredibly stupid for me to have ignored them, but with the prospect of them coming off my credit record in 1-2 years, I thought I was making a rational choice. Not any longer

You're saying these are unpaid bills? Are you able to settle them?

I intend to if it is likely to improve my chances of coming out of this clean. Trying in the first instance to ascertain whether it's prudent to do so as these unpaid bills are approaching SBD status.

Any more views? I did some research on backdated posts and evidence is inconclusive as to how much this is likely to matter to the big 4. I have decided to settle all outstanding debt, and it should by the time I start, manifest on my credit record, but it won't change the fact I defaulted a while back. Anybody had first-hand experience in this?

I don't think it would be checked during the standard onboarding checks. However, if your new company wanted you to work for a client in FS, it's likely that the client would require all staff to go through a series of tests. Of which one would be a credit check.

Thanks Frio - I am very likely to be doing FS work, which means that credit check on the client's behalf is certain, but by that time I would have settled all my defaults. The question is whether a default is as bad as CCJ/IVA/bankruptcy (which I don't have thankfully...

[quote]Thanks Frio - I am very likely to be doing FS work, which means that credit check on the client's behalf is certain, but by that time I would have settled all my defaults. The question is whether a default is as bad as CCJ/IVA/bankruptcy (which I don't have thankfully...[/quote]Don't know the specifics but at my FS employer we lose lots of people who did really well in interview at the credit check stage so I'd suggest it's pretty specific. All you can do it wait and find out - there's no way around it sadly.

Thanks Mr Bartlett. I have done some online research and see that FS firms can be very stringent in their credit checks process - lots of disgruntled contractors out there to attest to that. I am however at onboarding stage with a big 4, and no mention of credit check has been made so far. As mentioned - is a few defaults grounds for concern?

[quote]Thanks Mr Bartlett. I have done some online research and see that FS firms can be very stringent in their credit checks process - lots of disgruntled contractors out there to attest to that. I am however at onboarding stage with a big 4, and no mention of credit check has been made so far. As mentioned - is a few defaults grounds for concern?[/quote]When I was at Accenture I was never credit checked - I was background checked for some FS clients but never credit checked. I think most clients accept that the liability provided by your employer is enough....

When I was at Accenture, I was credit checked for one client in FS.

Incredible! Your decision on whether to pay your debts is based on whether you can get away with not paying and still progress your career as an advisor.I have every sympathy for those who fall into difficult times, but your decision making criteria are those if a scumbag.Rediscover some ethics! Pay what you owe, given you've admitted you can.Would you shaft your team mates if you thought you could get away with it too?

Never a lender nor a borrower be

Mr Cool, I think you are, uncharacteristically jumping the gun a bit. As you can see above I made the decision to settle everything. The question that remains is what (if any) impact settled defaults would have on any onboarding/client credit check process? @Bushy I'm not aware of any sharia banking work in the pipeline ;)

BH,I'm afraid I am with Coolio, your post did imply a "do I reaaaaally need to pay my debts?"...I have hired many a contractor and full timer over a number of years in FS (don't want to say how many, will be showing my age!).My advice to your (something which I have given offline to contractor and full time colleagues wanting to come into FS):- First and foremost, do a credit check on yourself. It costs less than £5 and can easily be done through a service such as Experian. What does it show? What is your score? Any defaults showing?Before accepting every job I have taken in FS, I do a quick Experian check on myself. Not surprising my score always comes back the same with no defaults showing, but it gives me confidence to look them in the eye and say "sure no problem, whatever checks needed can be done and I have the results of a self check if you need it". Plus if I have been hit by Fraud, I will know.- Do not get embroiled in unpaid credit cards etc. I agree with our policy of not hiring people who have large amounts of debt which is not under control (ie a sensible mortgage is fine, but a £10k credit card bill which is in trouble for 12+ months and going to court is an issue). We work in FS, you are expected at a minimum to be able to understand the basics of debits and credits. Plus be able to manage your money and live within your means, if you can't do that, then why am I going to give you £5m of my programme to manage!?! Yes there are extenuating circumstances, we take these into consideration but there must be a detailed plan in place to pay it all back and quickly, plus a good reason why the debt is out of control.Every MC does credit checks nowadays, so pay it off asap.

Thanks Anon MC for the detailed feedback - I am aware of the tone of the original post and I'm sorry it came across as such. Your comments make a lot of sense. I'd be thinking along the same lines if I were doing the hiring myself. I have run a credit check and my score is OK - bang in the middle of the middle band. Unfortunately the defaults are all there too, but I have already begun to pay them off, and will have done so by the end of the week. Hopefully by the time these are settled my score will bump up and I won't have quite so much to worry about...

Thanks so much AnonMC for the generous advice. I have several weeks until onboarding, so I will chase up with all parties whom I owe and ensure they have reported the settlements in time for the checks. The sums aren't trivial, but nowhere near the examples you provided, and I will be upfront and clear with my firm if required to provide an explanation. Thanks again. It's hugely helpful.

I see Anon's comment has been deleted - quite a shame really as it was helpful and not at all in contravention of good taste/any sort of privacy concern. BTW has anyone else had a similar experience to me and can they share?

It depends.I once had a credit card mare. Had dinner with clients. Paid bill with CC. Didn't leave tab or anything. We proceeded to drinks, etc.CC ended up being abused, with unknown charges. I complained to UK bank. They cancelled card and demanded full payment. I ssaid no, bloody investigate!I ended up getting my first ever default in my life. Was mighty pissed. But I fought on and eventually won.In the midst of this all, I was interviewing for a UK MC role. A credit check was obviously going to be carried out, since it involved some audit work. I told them the whole story up front. Ended up being a non-issue. But they did check.Another thing. For some roles that require clearances such as SC and whatnot, a less-than-ideal credit report will probably mean FAIL.You might as well fix up your credit report/rating. Why chance it?

Call the security company - the one that checked me (I work for Big 40) did not check for defaults / late payments. All of the above said, make sure the checks are cleared before you resign from your current role (if you haven't already!)