Employers add credit score to list of employee background checks

Borrowers are likely to find their loan repayments track record bothering them at the time of seeking new employment. Credit bureau TransUnion CIBILhas tied up with employee screening firms which help companies in screening potential new hires.

"We have been getting multiple requests from banks and background screening firms that in addition to the present screening processes that they have for employees - education, criminal and medical tests -- they also wanted to do a financial credit test," said Hrushi Mehta - VP and Head - Consumer Interactive, TransUnion CIBIL. He added that employers making these requests were largely multinational companies out of a compliance perspective. Although credit histories are usually requested by lenders who have received a loan proposal, TU CIBIL is able to provide this service as it is released after consumer consent. "We have a process wherein only when the customer authenticates it that we release it to the third party. It helps in deciding whether the company should do further due diligence on a prospective candidate or not," said Mehta. He added that if the report is that of a chronic defaulter, it is up to the company to decide whether or no to hire the person. FULL ARTICLE