credit

Please note the legislation surrounding credit records and the circumstances under which these may or may not be done in order to protect both you and I from being at risk of contravening the National Credit Act

APSO STAFFING WEEKLY : Volume 52: 19 August 2015

Top Tip for Recruitment Professionals: Credit Records and Associated Risks

As Recruitment Professionals service delivery to our clients are always very high on the list. We tend to forget about everything else but keeping the client happy, and sometimes unintentionally we may even put our own company as well as the client at risk. One example of this can be found in the Candidate Verification Process.
It has become a norm that clients request credit checks to be done on a candidate together with all of the other checks, i.e. criminal records, qualifications etc.

Is it legal to do so and always required in every instance?

The short answer is No!

A credit check may only be done under certain circumstances. The rule is that a credit check may only be done if it is relevant and an inherent requirement of the position.
Our thanks to MIE who have provided the summary below.  The full article can be found here The National Credit Act Amendment 19 of 2014 (NCAA) has been enacted and commenced on 13 March 2015.  Some of the changes which affect the background screening industry and the recruitment process in particular, are:
A consumer credit record may 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 and 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.

A request for qualification verification and employment detail require consent from the consumer prior to the request being made.
Always make sure that you discuss these requirements with your client when taking the brief for the position. As a Recruitment Professional it is your duty to protect the rights and obligations of all parties involved in the recruitment process.

NATIONAL CREDIT ACT

MIE would like to take this opportunity to notify you of newly implemented legislation which impacts the background screening industry, as well as to share our new service offerings with you.

Marlize Uys
04 August 2015

MIE qualification verification

The National Credit Act Amendment 19 of 2014 (NCAA) has been enacted and commenced on 13 March 2015.
Some of the changes which affect the background screening industry, and the recruitment process in particular, are:

  • A consumer credit record may 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 and 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.