Credit Checks
Background Screening Index 2015
Download the full Background Screening Index 2015
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Credit Checks
Who Should Conduct Credit Checks On Employees And Why?
Utilising credit (or Bureau) checks enables businesses to identify how employees manage budgets and finances. This is particularly vital for financial industries who invest a great deal of trust in employees responsible for handing large amounts of money.
With an increase in candidates’ credit histories being found as unfavourable, it can be argued that more individuals who are qualified to work in the financial industry may not be suitable to do so. Financial departments and institutions are therefore at higher risk of facing liability and unnecessary financial losses if they do not screen potential and existing employees.
The HR policies of organisations which relate to vetting employees should be reviewed on a regular basis.
MIE only conducts credit checks on candidates and employees who meet the legal criteria for us to do so.
2015 Legislation Changes
MIE is a registered Credit Bureau and is therefore required to comply with the regulations as set out in the National Credit Act Amendment 19 of 2014 (NCAA) which came into effect on 13 March 2015.
In line with the recent Amendment, a consumer credit record may only be accessed by an employment agency, recruitment consultant, staffing company or employer when:
- They certify that the request for consumer credit information relates to a position requiring honesty in the handling of cash or finances
- There is a job description in place that stipulates the requirement of trust and honesty in the handling of cash or finances
- Specific and informed consent of the consumer is obtained prior to the request being made.
The volumes below indicated an interesting trend – due to the recent Amendment to the Credit Act, MIE has noted a decline in the number of requests received to conduct credit checks.
Any company collecting, storing and reporting on certain categories of personal information has to be a registered Credit Bureau in terms of the National Credit Act No.34 of 2005.
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