Cifas Markers – The Reality Check

This blog from Setfords lawyer Jeremy Asher discusses the Cifas markers appeals process and what those who have a Cifas marker loaded against them need to be aware of when considering an appeal.

The appeal processes against Cifas and other fraud markers are complicated, and cases can be compromised unwittingly, making it essential that legal advice is taken before submitting complaints. Those who have had their bank accounts closed unexpectedly or who have been refused credit frequently discover that the reason is a fraud marker that they may have been previously unaware of.

The correct route to appeal such markers is to first lodge a complaint to the organisation that loaded the marker, and if it refuses to remove the marker, to then appeal to Cifas itself, then the Financial Ombudsman Service (“FOS”), or in very limited circumstances to the Business Banking Resolution Service (“BBRS”).

But the rules governing the Financial Ombudsman Service (“FOS”) prevent it from considering many such cases. This is particularly relevant to people who discover they have been marked by banks or other organisations where the account in question is a business bank account (so relevant to company directors); where the markers relate to an application for a financial product or service such as a bank account, a loan or insurance; or, where bank accounts or other financial products have been opened without the knowledge of the person marked.

Cifas has admitted that it upholds just 16.8% of complaints – it only considers whether a marker was correctly loaded, not wider arguments. The Court of Appeal recently ruled that the courts should stay proceedings for arbitration routes to be followed – that means FOS, Cifas and BBRS, and severe costs penalties can be awarded against those who fail to adhere to those processes.

Therefore, it is vital that an appeal to the organisation that loaded the marker is correct in the first instance, before a Final Response is requested or issued. Crucial to that is to first understand the reasoning for the marker being loaded, then to ascertain what evidence and wider legal arguments can be used to support the complaint. Such investigations can be time consuming.

At Setfords, we provide a free initial consultation and review service. We will quickly establish whether your case is likely to succeed. Given that Cifas markers can cause businesses to fail, ruin careers (including those in financial services, accountancy and some other professions), result in ‘debanking‘ and the refusal of applications for mainstream credit and banking facilities, the risks associated with such markers can be enormous.

If you are affected, please contact Setfords for assistance with Cifas marker removals.