What is a credit check?
A credit check is a process designed to assess the financial capacity of an individual or legal entity to meet its financial obligations, such as repaying debts or honoring a contract. This type of investigation can be carried out for a variety of reasons.
Here are a few examples:
- Before signing a commercial contract or lending money to an individual or company.
- When assessing risk in commercial transactions.
- To determine whether a debtor is in a position to settle his or her debts as part of a collection procedure justified by an enforceable decision.
- For requests to increase alimony payments in the event of a change in circumstances.
- To take protective measures. When a person or company is involved in a dispute, it can carry out a solvency investigation in order to immobilize the debtor’s assets.
Assessing the solvency of a third party or company reduces the risk of default, fraud or insolvency, while providing accurate, up-to-date information.
What is the role of the detective in a credit investigation?
A private detective is a professional investigator empowered to gather information on behalf of his or her clients, within the strict framework of the law. As part of a solvency investigation, he or she carries out detailed research to verify the financial situation of a person or company, analyzing various aspects of their assets, debts and sources of income.
In order to verify a person’s or company’s solvency, the investigator will look for various elements during his or her investigations:
- income, particularly hidden or concealed income
- bank accounts
- shares and stocks
- any real estate assets
- professional situation
Private investigators use various legal techniques to obtain information, such as discreet observation, witness interviews and analysis of public documents.
It is important to note that private investigators must comply with current legislation, particularly with regard to privacy and the protection of personal data. They cannot access confidential information without legal authorization, and all information gathering must comply with confidentiality laws.
What are the different aspects of credit investigation?
Concerning the professional situation
The private investigator can determine whether the debtor is an employee, civil servant or self-employed.
If the debtor is an employee or civil servant, the search will identify the company or public body for which he or she works.
In some cases, the results can be used to set up a wage seizure. This seizure is strictly regulated by law, and must be carried out in compliance with current legislation.
If the debtor is self-employed, the investigations will focus on the debtor’s income or the economic data of the company.
Concerning income
The private detective will analyze the debtor’s last declared income (N-1).
Whether the debtor is an employee, civil servant or self-employed, the detective will look for the following information:
- taxable amount
- the amount taxed
- number of shares declared
In the case of self-employed workers, a more in-depth investigation is carried out to assess the economic health of the structure. Any attempts to organize insolvency may also be uncovered.
Concerning bank accounts
The postal addresses attached to the debtor’s bank accounts will be determined. However, it is important to specify that no account numbers or bank balances will be communicated.
The results obtained will make it possible to set up a seizure-attribution (saisie-attribution), which consists in having a judicial commissioner block a sum of money in the bank(s) where the debtor has assets. This seizure is strictly regulated, and excludes certain non-seizable incomes such as RSA.
Concerning real estate
A property search consists of questioning one or more land registries in order to identify the debtor’s built and unbuilt properties.
If one or more properties have been identified, the search can be taken a step further by obtaining a deed of sale or purchase.
Concerning shares
To search for a debtor’s shares, the investigator will need to know certain information, such as the working environment in which he or she operates, or his or her acquaintances. This may involve one or more companies in which the debtor has worked, or which he has managed alone or with partners.
It should be noted that the seizure of shares is strictly regulated.
In short, a solvency investigation carried out by a private detective can be a valuable tool in cases where financial information needs to be verified discreetly and thoroughly. However, the legality of the methods used must always be ensured. That’s why it’s important to work with licensed professionals to avoid any legal risks. Please do not hesitate to contact Agora Détectives for further information.
