Many of us have been through the application process. And we have had to sign a consent form. Without hesitation we give our potential employer permission to do a credit check on us. In most cases we give this permission to recruitment agencies as well. The consent form is law, part of the national credit act.
Of course you may refuse, as this is your right. But you might not even be considered for a job if you do. Most people have been rejected for a job because of bad credit. Because apparently financial distress indicates risk of fraud or theft. But how true is this? There is a lot of factors that lead a person to have bad credit, factors that are beyond control. Does this mean a person is more likely to steal at work?
Take a look at the faulty South African National act. Section 70, regulation 18: It is illegal to conduct a credit check on a prospective employee if the position does not require trust and honesty. Now ask yourself that which position does not require trust and honesty?
So now have bills to pay. But you cannot pay them because you cannot get a job because you cannot pay your bills. Its a vicious cycle. And with time the situation moves from bad to worse, when it includes interest on that debt. All thanks to the national credit act.