Lloyds Bank CIFAS Marker — Marker removed after escalation
The situation
M applied for a Lloyds credit product through a broker. The broker submitted income information that Lloyds later said was inaccurate. Lloyds placed a False Application marker on M's CIFAS record. M did not know the broker had submitted incorrect figures.
Our approach
The complaint focused on third-party involvement — M did not prepare or submit the application directly. The arguments challenged: (1) whether M had any knowledge the information was false, (2) whether Lloyds had evidence that M was the source of the inaccuracy, and (3) the CIFAS standard requiring evidence of dishonesty, not just inaccuracy.
Issuer response
Lloyds rejected the initial complaint, maintaining that the marker was correctly filed regardless of who submitted the application.
Escalation
We prepared escalation documents for both CIFAS and the Financial Ombudsman simultaneously. The CIFAS complaint argued the member had breached filing standards by not investigating third-party involvement. Within three weeks of escalating, Lloyds agreed to remove the marker before the FOS made a decision.
Result
Marker removed 3 weeks after escalation. Lloyds withdrew the marker rather than face a potential FOS ruling against them.
Key takeaway
When a broker or third party was involved in the application, the issuer must demonstrate that YOU were dishonest, not just that the information was false. Many institutions will settle when this distinction is clearly made.
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