So I’ve just had a reference check back, and although the affordability all checked out fine, the salary, the ID checks etc, no checks on rent or mortgage as been living in a mortgage free house for a long period, what has come back is a failed Credit check due to an unsatisfied CCJ of around £3.5k 6 years ago.
This was never mentioned to myself prior to referencing, and I’m stuck as to what to make of it.
I have asked for information regarding the CCJ and waiting for a response. Due to it being unsatisfied, would anybody else see this person as an unnecessary risk, and perhaps not move forward?
Haha, we had such applicant. He also failed to mention it. When asked, he had 3 CCJ but assured us that it’s all being taken care of. Also, he provided bank statements which confirm he high salary and being overdrawn every single end of the month. Plus, he had multiple payments to “Melissa”, “Amanda”, “Rafaella”, etc. Basically, he used escort on a regular basis. Expensive thing, which left him broke and in debt every month. The guy was a highly-paid engineer.
I guess you know what our response was.
After response from the applicant, they state the CCJ has a very minimal amount left, £160, and can provide proof of every payment with non missed, in line with the order of repayment. Also, they can pay off the CCJ now in a lump sum.
How long would it take to show on a credit check that the CCJ has been satisfied?
Alan14, I presume their regular repayments of CCJ are reflected in their bank statements. If I decided to give them a chance, I would ask 12 historical bank statements proving what he said. Don’t just believe him.
Yes. I have asked for proof of continuous payment of this debt, and 12 months total incomings and outgoings on bank statements, as well as the remaining balance of the CCJ to be paid off, along with proof of completion.
I understand this is a risk to me, but as stated previously in another post, the total standard of applicants has been extremely poor.
After 6 years the CCJ will drop of the credit report as it’s almost (!) uncollectable so looks like in a few months the check will clear him. Secondly did he pay a holding deposit and are you going to keep it? Thirdly if he has been living rent free for a while, he/she must be building up credit worthiness somewhere else.
As things stand there is no benefit to satisfying a CCJ. If you pay it, you’ll still have the black mark so why pay. And if there have been no more since, then perhaps the issue was a one-off.
I’d be more concerned with the type of job he/she has; how long they’ve been in it; and how good are the employer’s accounts. There’s going to be a clear out of some companies tottering on the brink after Covid so would check employers before checking employees.
I checked into the CCJ and it expires December this year, and as stated the applicant has advised that all payments have been made according to the payback plan.
If this person was to suggest that there was no point in paying back the CCJ due to it still being on file (you can apply to get it taken off before the 6 years if paid back), then that would be an instant red flag, as was also mentioned above, would show the applicants attitude towards debt.
We’re currently discussing proof, and the applicant is being very cooperative the moment.
The applicant has a good job, with a very well established international company (A*n), with proof of income, so dependent on the evidence provided, I am considering accepting her still (I know I’m probably mad, and it may come back to seriously bite my tush!).
The living rent free for over 20 years, was due to partner having a mortgage free property (apparently).
If you are awarded a CCJ against you as long as you pay it within a month it is not recorded. I know this because I lost a dispute over a fence,I paid to maintain my clean record.
Anyone who has the means to pay one off and doesnt to my mind is a bad risk.
If they pay one of after a few years it still shows, but then shows the person has done so when able, so has good intent.
how can her CCJ be her partner using her credit card… that doesnt stack up. Living rent free for 20y - she should have enough deposit to buy her own place no?
But I will ask to see evidence.