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Banks are fighting debtors for various types of loans. In this confrontation, victory is now for one side, now for the other. It happens that debtors also achieve something. An example is the order of Rospotrebnadzor that in (judicial) proceedings on the legality of transferring debts to third-party organizations (collectors) one should be on the side of the borrowers.

But it is worth noting that this victory was a temporary phenomenon. A law has been passed according to which the transfer of debts to collectors is legal. Therefore, in a confrontation with debtors, as a rule, the financial institution wins.

What can complicate the life of debtors

Currently, banks have one rather serious advantage that can significantly complicate the life of a borrower-debtor. This summer, or more precisely from July 2014, legislative changes will come into force that will allow employers to look at the loan history of their applicants. In other words, finding a job will become more difficult for those who have problems with banks. Many believe that such a measure cannot be called reasonable, since it will not affect the repayment of debts. But this will make life more difficult for some people.

The size of overdue debts will not decrease. On the contrary, the situation may worsen. Life is diverse, anything can happen. If a person is fired, he loses financial stability and takes on debt. This does not mean that he deliberately does not give money to his creditors due to some internal convictions. Responsible people with all their hearts want to change this state of affairs and want to find a new job. And because of the work of banks, everything will become more complicated. A damaged credit history of an applicant can hinder him. If a person was not a bank debtor, then he will have an implicit advantage, but it can be decisive when getting a job.

What do the new changes mean?

There may be cases when employers do not want to hire a highly qualified specialist who has all the necessary qualities, only because this applicant did not repay the loan from a certain bank on time. Does this raise a question? How to repay a debt if a person cannot find a job? Like a vicious cycle. People will find themselves in difficult situations, but for many there will be no way out of such a debt hole. How to pay off your loans if they don’t give you a chance to get out. Where can you get new income if you can’t find a job?

One can only hope that not all employers will support such positions. Probably small companies, in which employees are not public people, will check loan histories only out of curiosity. If there is no need for an excellent reputation, then no one will be denied employment because of debts to banks. But it is worth noting that different situations are possible here too. When we are talking about some old arrears that have been settled long ago, this is one thing. And if a person owes a large sum of money and has not returned it, then this will be a reason to think about it. This is especially alarming when we are talking about the recent past. Any employer may not like this.

What if a person’s job involves money? Then it does not shine for the person, even if the debt was old and the borrower has already settled everything with the creditor. A person may be asked at an interview about where this debt came from, why he did not repay it or paid it off late.

Therefore, from the second month of summer of this year, when preparing for an interview, applicants must understand how to answer traditional questions during employment, and also be prepared to be asked why a loan for a certain amount was not given to the bank. In the history of loans you can see not only large loans, but also smaller ones. Therefore, you need to be prepared to answer any question about any loans you have ever taken.

Is it possible to improve the situation?

Starting in July, the loan history will contain data on debts to MFOs (microfinance organizations). This is good and bad at the same time. On the one hand, this is a chance to improve your credit history. MFOs lend money to everyone without checking credit histories, and this is an opportunity to improve their reputation in this regard. You can take out a loan from such an organization, return it on time, improving your loan history. After this, even banks can start issuing loans, and employers will hire such an employee.

But on the other hand, too many debts can be a bad characteristic for a person. Loans from microfinance organizations should be used as a last resort, when money is urgently needed and there is nowhere to get it. If a person has to borrow from them often, this indicates that the person is constantly unlucky or that he does not know how to manage his budget, plan it and manage his expenses. These are not the most positive characteristics. It turns out that the June change will only drive people deeper into debt. It will not be easy for people with bad stories until the bankruptcy of individuals is legalized. And this will not happen soon. There remains hope for the sanity of employers, who must understand that there are various circumstances why people might not repay debts on a timely basis, many of them are quite understandable.

Here are some of the reasons that could spoil the story, but they do not characterize people in a bad way:

• Reduction.
• Job loss. For example, due to poor income, a person decided to change his profession in order to earn more and pay off his debts.
• Bank errors.
• Salary delays.
• An illness due to which it was necessary to allocate part of the income for a certain period to medicines and treatment.

For the West, checking credit histories is a common practice. But the mentality there is different from ours, in these countries there is a different attitude towards obligations, and the level of financial literacy of people is higher.

Conclusion: From July 2014, employers will be able to check applicants' credit histories. Many believe that this will only drive borrowers deeper into debt.

We conducted a small investigation to find out whether a damaged credit history can really negatively affect employment.

Having looked at a sufficient number of reviews of applicants on job selection portals, we came to the conclusion that in recent years an increasing number of business managers pay attention to information from the candidates’ credit history, since this is an important additional source of information about a person. Any credit history includes not only information about credits and loans, but also information about legal penalties, debts on housing and communal services, alimony obligations, non-payment of communications and, of course, first of all, information about the bankruptcy procedure, if a citizen has ever experienced something similar.

Since 2014, when employers received the right to request information about citizens from the credit bureau (but not yet only with their consent), in the media and online blogs there are regularly publications about cases refusal to hire, the cause of which is unfavorable information from the credit history. This is especially true for large and top companies that value their reputation and take personnel selection very seriously. Unscrupulous loan borrowers are capable of ruining the lives of not only themselves and their loved ones, but also often their neighbors, work colleagues and employers, since they are sometimes persecuted by creditors and collectors who use far from peaceful means to repay the debt. It is not surprising, therefore, that reputable, well-known companies prefer not to get involved with debtors.

What are the employer's concerns?

The presence of overdue loans can negatively affect the work process and distract the employee. Instead of devoting working time to performing his immediate duties in the company, the employee will conduct endless negotiations with creditors and collectors, and spend time solving personal problems. And as a result, he will not be able to fulfill the obligations assigned to him, will not be able to complete the job, or will miss deadlines - this is what employers fear most of all.

A number of professions and positions have already been identified, for which HR officers check data from credit histories. First of all, this employees of financial companies, banks, as well as employees dealing with real estate, property, and material goods.

How to check an applicant

We sent a resume for the vacancy of a financial analyst to one of the Moscow banks, our employee was invited to a personal interview, as a result of which he was notified that the bank's security service would conduct additional verification of documents, including obtaining data from the credit bureau. Note that the applicant himself in this not involved in the process and does not have to provide a credit history, only consent is required from him.

In our case, first the company's security service requested data about debt obligations from the applicant himself and then compared information received from credit history information.

According to the bank's recruiting manager, if it turns out that the applicant has hidden important information from his credit history, especially if it concerns large debts, lawsuits, and the like, he is unlikely to be able to get the coveted position. Although they won’t directly announce this to him, they won’t hire him either. Sometimes a negative credit history can greatly damage a citizen’s reputation, reducing his chances of landing a profitable position.

True, the security service may be able to turn a blind eye to some minor debts.

Who is being checked?

Increasingly, applicants for the positions of financial director, accountant, cash collector, cashier, manager, warehouse worker, and some others are being checked.

Almost in all banks Today people pay attention to credit histories candidates for all positions. Data from the credit bureau of employees of sales departments and purchasing departments can also become the object of close study by the personnel service.

In addition, regardless of the company’s field of activity, special attention is paid to credit history when choosing a candidate for management positions. A top manager cannot have such negative aspects in his biography.

So far, we are not aware of cases where, when applying for a job, credit histories were requested from candidates in the field of IT (technical specialists, programmers, network administrators) and from applicants for creative professions (designers, decorators, artists), from service personnel and general workers. I wonder what when applying for civil service Also do not pay attention to credit histories citizens, although debtors who brought the case to court may experience some difficulties in finding employment.

According to the HR manager of one of the leading banking groups in Russia, at the same time, there are individual facts successful credit history, which definitely play in favor applicant. For example, loans paid on time, timely payment of housing and communal services bills and alimony indicate the high discipline of the candidate for the position, which should be reflected in the results of his work. Employers also look positively on the presence of an open mortgage, since this indicates that the applicant is interested in long-term cooperation, will stick to his job and is unlikely to change jobs frequently.

Therefore, anyone who strives for career growth or wants to find a highly paid position needs to seriously think about improving their credit history and paying off overdue payments and debts.

Non-financial companies are increasingly connecting to credit history bureaus. For them, a credit history is another opportunity to thoroughly check an applicant when applying for a job. As experts note, there are already the first refusals to apply for a job due to a bad credit history.

Today, a citizen’s credit history is simply a storehouse of useful information, because it already includes not only information about debts on loans, but also data on debts for utilities, communication services, and alimony obligations. If a citizen has gone through bankruptcy proceedings, this is also reflected in his credit history.

Of course, a number of employers have become interested in such an important tool for screening applicants when applying for a job. They have the right to request citizens’ credit histories since 2014.

As employees of recruitment agencies note, when applying for a job, credit histories are often checked by large companies that value their reputation. It is no secret that every debtor is almost relentlessly followed by collectors who allow themselves to call the debtor at work, come to the place of work, distracting both the debtor and his colleagues from work. Therefore, reputable companies prefer not to get involved with debtors.

When applying for which positions are credit histories checked?
Typically, applicant verification is based on the following principle. First, the company's security service requests information about debt obligations from the applicant himself. The information obtained is then compared with information from your credit history. In principle, they may turn a blind eye to some minor debts, for example on a credit card, but they will be wary if the borrower owes large sums of money and does not pay them, bringing the matter to court. It would also be a disadvantage if the applicant hid important information from his debt history from the security service. Such a citizen may be refused, although officially he will be given a completely different reason.

All citizens who go to work at a bank should be wary of credit history checks. Today, almost all banks pay attention to the credit histories of their employees.

Also, employees who deal with finances and property will be checked more and more often. This could be a financial director, an accountant, a cashier, a housekeeping manager, a warehouse worker and others.

Regardless of the field of activity, special attention will be paid to credit history when selecting candidates for high positions. A top manager should have no blemishes on his record.

For now, they do not request credit histories from citizens working in technical professions, employees of creative professions, service personnel, and working personnel. The civil service also does not pay attention to the credit histories of citizens, although debtors who brought the case to court may have problems with employment.

Interestingly, some credit history facts will work in favor of applicants. For example, successful payments without delay indicate the applicant’s high discipline, which should be reflected in the results of his work. In addition, employers look positively at the availability of a mortgage loan. This suggests that the applicant is interested in long-term cooperation; he certainly will not change jobs every 3 months.

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• What to do if you don’t get a job because of loans?
• Who has access to credit history
• Checking credit histories in other countries
• What information can an employer obtain?
• It is not clear how the insolvency of an employee can affect the employer?
• Is it legal to refuse a job because of bad credit history?
• Is it possible to find something good if you weren't hired because of bad credit history?

What to do if you don’t get a job because of loans?

I want to get a job, but they won’t take me, citing bad credit history. Is this legal?

Who has access to credit history

The fight against debtors is growing and becoming tougher. The Russian government is making every effort to reduce the number of debtors.

Changes to the Law “On Credit Histories” have entered into force, allowing employers to check the credit histories of applicants.

According to the changes, not only banking organizations submit information to the credit history bureau, but also microfinance. Previously, only banks could access credit history; now employers will be able to obtain certificates of citizens’ solvency.

Given this opportunity, many large companies will not want to hire debtors. They are interested in hiring responsible and disciplined workers who are completely dedicated to their work. How will the debtor work, because his head is filled with problems with debt obligations.

The circle is closed. To pay off the debt, the borrower must look for a job, but will be rejected due to unpaid debts.

There is no urgent need for an employer to know your credit history. It can be spoiled for various reasons: staff reduction, non-payment of wages on time, illness, etc. Maybe a person quit his previous job in order to find a better and higher-paying job

Checking credit histories in other countries

This is normal practice, it is used in EU countries and the USA, where such verification is carried out by most companies. Low payment discipline when paying off loans, paying utility bills or rent is grounds for refusal to hire. This generally characterizes the responsibility of the future employee.

This practice has existed in the West for decades. Even more, if an employee took out a loan whose monthly payments exceed 50% of his salary, he will be automatically fired. The employee is considered to be ineffective.

What information can an employer obtain?

To obtain information, simply make a request to the Credit History Bureau. According to the law, all data can be “found out” only with the written consent of the employee. But the information part, which contains information about the provision/refusal of a loan and about repayment violations, can be obtained.

It is not clear how the insolvency of an employee can affect the employer?

Experts have different opinions on this matter. Some are inclined to believe that this will lead to a violation of workers’ rights, while others consider the consequences of the innovation not so depressing.

Not all employers, but most likely large firms, will check the credit history of job applicants. It's no secret that most of them still find out from their potential employee, with how many loans does he have and how does a citizen repay them?.

This is especially true for those people who are applying for jobs in the financial industry. Working with money requires only positive qualities. The main thing is the ability to manage money, not get into debt and clearly plan your budget. An old bad debt is a huge disadvantage for a job applicant, and of course it will arouse suspicion among the employer.

What is a credit history? How do credit bureaus work?

Is it legal to refuse a job because of bad credit history?

There is no such basis for refusal to hire.

According to the Constitution, the state guarantees equality of rights and freedoms, regardless of gender, race, property and official status, etc.

The Constitution guarantees men and women equal rights and freedoms, as well as equal opportunities for realization. Everyone has the right to work, to remuneration for work without any discrimination, no lower than the minimum wage for work established by federal laws.

Therefore, if you are not hired due to outstanding or overdue loans, request a written refusal. The refusal can be challenged in court. Or file a complaint with the labor inspectorate.

Is it possible to find something good if you weren't hired because of bad credit history?

Yes, definitely. A person gains valuable experience aslive within your means. He will be forced to sell what he did not earn, but bought with credit money. And most importantly, life will force you to find another job or start your own business.

May you be lucky!

What to do if you don’t get a job because of loans? Reading time 8 minutes. Who has access to credit history? The fight against debtors is growing and becoming tougher. The Russian government is making every effort to reduce the number of debtors. Changes to the Law “On Credit Histories” have entered into force, allowing employers to check the credit histories of applicants. According to the changes, not only banking organizations, but also microfinance organizations submit information to the credit history bureau. Previously, only banks could access credit history; now employers will be able to obtain certificates of citizens’ solvency. Given this opportunity, many large companies will not want to hire debtors. They are interested in hiring responsible and disciplined workers who are completely dedicated to their work. How will the debtor work, because his head is filled with problems with debt obligations. The circle is closed. To pay off the debt, the borrower must look for a job, but will be rejected due to unpaid debts. There is no urgent need for an employer to know your credit history. It can be damaged for various reasons: staff reductions, non-payment of wages on time, illness, etc. Maybe a person quit his previous job in order to find a better and higher-paying job Checking credit histories in other countries This is normal practice, it is used in EU countries , in the USA, where such verification is carried out by most companies. Low payment discipline when paying off loans, paying utility bills or rent is grounds for refusal to hire. This generally characterizes the responsibility of the future employee. This practice has existed in the West for decades. Even more, if an employee took out a loan whose monthly payments exceed 50% of his salary, he will be automatically fired. The employee is considered to be ineffective. What information can an employer obtain? To obtain information, it is enough to make a request to the Credit History Bureau. According to the law, all data can be “found out” only with the written consent of the employee. But the information part, which contains information about the provision/refusal of a loan and about repayment violations, can be obtained. It is not clear how the insolvency of an employee can affect the employer? Experts have different opinions on this matter. Some are inclined to believe that this will lead to a violation of workers’ rights, while others consider the consequences of the innovation not so depressing. Not all employers, but most likely large firms, will check the credit history of job applicants. It’s no secret that most of them still find out from their potential employee how many loans he has and how the citizen repays them. This is especially true for those people who are applying for jobs in the financial industry. Working with money requires only positive qualities. The main thing is the ability to manage money, not get into debt and clearly plan your budget. An old bad debt is a huge disadvantage for a job applicant, and of course it will arouse suspicion among the employer. Is it legal to refuse a job because of bad credit history? There is no such basis for refusal to hire. According to the Constitution, the state guarantees equality of rights and freedoms, regardless of gender, race, property and official status, etc. The Constitution guarantees men and women equal rights and freedoms, as well as equal opportunities for realization. Everyone has the right to work, to remuneration for work without any discrimination, no lower than the minimum wage for work established by federal laws. Therefore, if you are not hired due to outstanding or overdue loans, request a written refusal. The refusal can be challenged in court. Or file a complaint with the labor inspectorate. Is it possible to find something good if you weren't hired because of bad credit Yes, absolutely. A person gains valuable experience on how to live within his means. He will be forced to sell what he did not earn, but bought with credit money. And most importantly, life will force you to find another job or start your own business. May you be lucky!