Bad credit history

dan1983

Hi just a quick question, will a bad credit history affect you becoming an accountant. I rang AAT and they said it may affect you when you apply to for full membership. Im not talking about bankruptcy or ccj's just defaults on credit cards and unpaid loans... Also if these were to be paid off in full before then would it be ok?

Vlee

Hello

I would've thought AAT would be able to answer this query, perhaps writing/emailing them with the full details will get a definitive answer. I wouldn't worry about a few late payments - we all have things slip our mind now and then. However what are the details around the unpaid loan? Is it a student loan, in case there is no issue, or is it something else, has any legal action been taken? Regardless of AAT get them paid if possible or get advice from the CAB or other agency that can advise if this is not possible. I seem to remember there being an AAT ethics line for advice, is this who you tried already? I hope you get it sorted, I can see why the AAT require members to be financially squeaky clean but it is unusual for this to impact on employment in most sectors. Good luck sorting it out.

dan1983

Hi thanks for your reply,

It was a bit more than a few late payments. I got into financial difficulty about 6 years ago, I was self employed and my partner just had a baby and got made redundant at the same time so I couldn't afford to pay my debtors and rent aswell, so got told by cab to pay the necessities, ie, rent, council tax, etc. So I told my debtors and they refered my accounts to debt collectors which I wasn't able to pay. I have started paying them monthly now but for a long time I didn't pay them anything. I currently have two outstanding as the rest I have settled. I hope this does not affect anything as I have just completed level 2 and wish it hasn't been a waste of money and time...

Vlee

It sounds like you have been handling things fairly well, I imagine there are plenty of people who have similar situations in the last few year. Definitely write/email for a definitive answer so you don't spend anymore on AAT if things won't work out with full membership. I'd pay them off now if you have that option, you will save on the interest so pay less overall.

Don't feel like your L2 is wasted as you may find it helpful for some jobs which are not directly accounting and shows other transferable skills. Although hopefully you will be able to sort something out and get a written answer from AAT.

SandyHood

AAT have a clear policy
http://www.aat.org.uk/policy-on-bankruptcy-and-criminal-convictions


Quite importantly and apart from AAT's requirements
You need to reassure yourself that you can manage your own money
And do it so well that people will pay you to manage theirs

dan1983

SandyHood wrote: »

AAT have a clear policy
http://www.aat.org.uk/policy-on-bankruptcy-and-criminal-convictions


Quite importantly and apart from AAT's requirements
You need to reassure yourself that you can manage your own money
And do it so well that people will pay you to manage theirs

Hi, as stated in my previous post I have not been bankrupt.
I believe I can manage my own money, but as stated I came up against a lot of unforeseen circumstances in the past.
Surely you shouldn't be punished for such small previous mistakes, its not like I have ever robbed or killed anyone, just couldn't afford to pay some debts. Also I have real experience with dealing with debts so have quite a lot of knowledge regarding this. Just like a lot of previous convicts will work for the social advising youngers not to get involved with illegal activities or previous alcoholics working as advisors for alcoholics.

Do you think I should just quit now then, if I don't stand a chance, as I am already going to find it a struggle to get a job as I am a 30 year old changing careers from a self employed plumber.

CeeJaySix

Employers in the finance industry will require you to disclose the fact that you came to an arrangement with creditors (along with various other information you wouldn't normally have to disclose to an employer, such as spent convictions); as it hasn't led to bankruptcy/CCJs etc I would like to think that this would not prohibit you working in the sector, but I am far from an authority on the matter. If AAT are willing to accept full members who have been made bankrupt (albeit with mitigating circumstances) then I would hazard that you should be okay when it comes to applying for full membership. If AAT are being unhelpful it may be worth calling ICAEW/ACCA (say you're potentially looking at studying for their quals) or find their membership criteria and get their opinion on whether you would be eligible for membership to their bodies. I don't think anyone other than the relevant departments at the professional bodies could give you a definite answer, it will all just be best guess and speculation.

SandyHood

Do you think I should just quit now then, if I don't stand a chance, as I am already going to find it a struggle to get a job as I am a 30 year old changing careers from a self employed plumber.

I see no reason to worry about completing AAT and becoming qualified.

You are moving from a career where you were paid by people who trusted your expertise as a plumber to another where people must trust that you can manage their money.

I am sure that you are not the first to pursue this career with a bad credit history, but it is a handicap. You haven't said whether you work in the accounts department of a trading business or in an accountancy practice or if you haven't actually started to work in accounts.
Employers could be sniffy along the lines I outlined in my first reply. But as someone who had a problem, and more importantly overcame that problem you may even have a better position than someone who never had a bad credit history in the first place. You'd be able to use your experience to help clients who have the same sort of difficulties.

I stick to original point, for your own self-confidence.

1. Show yourself that you can manage your own money
2. Let others see you've pulled things around
3. Convince them, you can manage their money

gazwales84

Hi there. I completely understand your situation. I am on a debt management plan with the Consumer Credit Counseling Bureau, which is government backed, after I got made redundant and my wife fell pregnant. I owed over £20 grand. When I contacted the AAT I had to fill out a large form and give reasons how I got into the situation. I also had to get a letter from the my debt management charity to confirm that I had made the payments and not had any missed payments or other issues. The AAT acted swiftly and I was allowed to apply for student membership with no issues what-so-ever. It felt at times like it was all too much hassle, but I think that was probably all in my head.
I think the AAT appreciate that over the last few years people, through their own for or not, have found that things have got a bit tight financially and people have found themselves in difficult circumstances.
I will also say that the debt management charity that have helped me, have actively encouraged me to continue my studies as it is hoped it will get me a better paid job, thus helping to pay my debts off quicker.
Hope this helps.