Work with our spealist team to get rid of your CIFAS Marker from your Credit Report? Book a free assessment today.
What is a CIFAS marker?
CIFAS (Credit Industry Fraud Avoidance System) is the National Fraud Database that keeps a record of persons suspected of committing Fraud or involved in fraudulent activities.
Most financial services companies in the UK who provide insurance, loans, mortgages, bank accounts and other money services are members of CIFAS.
A CIFAS marker is a record placed on an individual’s credit report to alert other institutions, such as banks, loan companies, or insurance companies, to alert other institutions about potential customers who may pose a financial risk.
According to CIFAS, over 850 cases of fraudulent conduct recorded every day in 2023, and they prevented over £1.3bn in fraudulent conduct in 2023.
Having a CIFAS marker will often stop you from getting credit, a mortgage, pass credit checks or you may potentially lose your job if you work in relevant sectors.
Now that we understand what a CIFAS marker is, let’s explore how it is placed and how to get it removed if it wasn’t placed correctly.
You can book a free assessment if you need help in getting a CIFAS marker removed, but this article will provide all the important details.
How to get a CIFAS marker removed
If you have been affected by a CIFAS marker, don’t worry – there are steps we take to try and have it removed.
Step 1: Submit a Direct Subject Access Request (DSAR) to CIFAS, asking for details of the marker they have on file for you.
Step 2: Contact the organisation responsible for placing the CIFAS marker and request that they remove it.
Step 3: If your request is denied, contact CIFAS and request a review. They are legally required to respond within 14 days.
Step 4: If the review is unsuccessful, the complaint can be referred to the Financial Ombudsman service for a final decision.
The Financial Ombudsman will make an assessment and see if the CIFAS marker was placed correctly.
For a complaint to be successful, we ensure that the institution placing the marker has follow the correct procedure. We know the technicalities required to get your CIFAS marker removed.
What is the CIFAS marker Removal Cost?
Our costs for removing a CIFAS marker ranges from £500 to £2500 depending on the complexity of your case.
The process often requires reviewing a large number of documents and finding the correct arguments to get the CIFAS marker removed.
Finally, we prepare the complaint in a professional manner outlining the facts of your case and presenting the case in the best way possible.
As each case is unique, the price will be determined based on the type of marker, complexity and steps required.
Our average quote to remove a CIFAS marker is £1,250.
CIFAS Marker Free Assessment
We provide a free assessment to learn about you and your situation, this is important because it allows us to check if you have a good chance of getting your CIFAS marker removed.
The assessment is a free call to discuss your situation. Simply send us a message and upload any documents you have, we will then follow up and schedule a call with you within 24 hours to discuss your case.
Types of CIFAS markers and how long they last
There are 8 types of CIFAS markers. Here is a summary of the CIFAS markers and when each one is placed.
The only way you can find out about the other categories of CIFAS marker is by making a Data Subject Access Request to CIFAS.
This is because the institution that placed the mark against your record is under no obligation to inform you that they have done or to explain why.
The most common types of markers placed on an individual’s credit report are “First Party Fraud” and “Application Fraud”. Number 1 and 6 below.
- First-party fraud: This type of fraud occurs when a customer intentionally does not pay for goods or services they have received. This marker is placed on a person’s credit report for up to 6 years.
- Insurance claims fraud: When a person provides false or misleading information when making an insurance claim, it is considered insurance claims fraud. This can be exaggerating damages to completely fabricating a claim. This marker remains on a credit report for up to 6 years.
- Facility Takeover: A facility takeover occurs when a bank account is accessed and used without the account owner’s permission for unauthorised transactions. This marker stays on a credit report for up to 6 years.
- Protective Registration: This marker is placed on a credit report for 2 years and is requested by the individual directly with CIFAS, the UK’s fraud prevention service. It is used to alert lenders of potential fraud and is typically requested by individuals when they believe they have been a victim of fraud.
- Victim of Impersonation: If someone has used another person’s identity to obtain credit, a lender can file this marker on the credit report of the victim for their protection. It will remain on the credit report for up to 13 months.
- Application fraud: This type of fraud occurs when an application for credit or a financial product is made using a person’s correct name but false details. This marker stays on the credit report for 6 years.
- Asset Conversion: When someone sells goods that have been hired, rented or leased, such as a hire car, it is considered asset conversion fraud. This marker remains on a credit report for up to 6 years.
- Misuse of facility: This type of fraud occurs when someone gains control of another person’s bank account or credit card for the purpose of fraudulent activity. This marker will remain on the credit report for up to 6 years.
While many CIFAS markers are placed legitimately, many CIFAS markers are not recorded properly or fairly and therefore can be removed.
Examples of when CIFAS marker is placed incorrectly includes:
- When a bank account is closed after a false application
- If your name is used to make applications for loans, mortgages, bank accounts or credit.
- If the company placing the CIFAS marker has not followed the correct procedure.
CIFAS Marker Removal Cases
The following cases show how CIFAS markers were removed after the complaint was sent to the Financial Ombudsman who found in favour of the customers.
Case Study 1: Ombudsman orders Tesla to compensate customer
In the case DRN-4326183 decided on 3 October 2023, the Ombudsman stated that Mr. E was unhappy with a car he purchased through a conditional sale agreement with Tesla Financial Services. He experienced issues from the start and ultimately, the car broke down due to a suspension problem.
Mr. E wanted to reject the car, but Tesla insisted on repairing it. The ombudsman determined that the car was not of satisfactory quality and ordered Tesla to refund 5% of Mr. E’s payments and compensate him for the inconvenience.
The ombudsman also directed Tesla to remove any negative credit entries and pay interest for the refund.
He received a 5% refund for fees paid for the vehicle, 8% interest on the refund and £500 in compensation from Tesla for trouble and inconvenience caused by being supplied with a car that wasn’t of a satisfactory quality.
Case Study 2: Ombudsman Orders a Faulty Van hire agreement to be cancelled
This is complaint DRN-4285235 was decided on 26 September 2023, it was regarding a faulty van purchased via hire purchase agreement from Mobilize Financial Services.
The customer paid a deposit and the remaining balance for a brand new van in September 2022.
However, on the day of collection, the customer discovered numerous faults with the van and brought it back to the dealership for repairs. After several attempts, the van was not fixed and the customer rejected it in January 2023.
The customer made a complaint to Mobilize, but they denied it based on unreliable evidence from the dealership. The ombudsman has upheld the complaint, stating that the van did not meet satisfactory quality at the time of purchase and that the customer was entitled to reject it.
The most important thing to do at this stage is getting a professional complaint to be filed, getting the right advice and following the steps to get your CIFAS marker removed.
The ombudsman has ordered Mobilize to cancel the agreement, refund all payments and costs, and pay interest and compensation to the customer.
Case Study 3: Bank apologizes for wrongly closing account and applying fraud marker
In case number DRN-3389800, a complaint was made by Mr G against Lloyds Bank PLC for placing a Cifas marker on his name without sufficient evidence.
Lloyds had done this after receiving reports of unauthorized attempts to transfer funds to Mr G’s account. Despite Mr G’s denial of any involvement and evidence that he did not login to his account more frequently on the dates of the attempted transfers, Lloyds closed his account and applied the Cifas marker.
This resulted in a significant impact on Mr G’s financial accounts and personal circumstances, such as being refused a bounce back loan and having accounts closed. An investigator found that the Cifas marker was not applied correctly and recommended that Lloyds remove it and pay £500 in compensation.
Lloyds accepted the recommendation, but Mr G was unhappy with the compensation amount and the matter was passed to the Ombudsman for a decision. After considering the evidence and arguments, the Ombudsman found that the Cifas marker did cause significant inconvenience and disruption for Mr G, but it could not be solely attributed to Lloyds and could not award further compensation for consequential losses that were not evidenced.
Therefore, the Ombudsman directed Lloyds to pay Mr G the recommended £500 for the distress and inconvenience caused.
Lloyds has already removed the Cifas marker, and Mr G has verified this. The Ombudsman’s final decision is for Lloyds to pay the £500 compensation to Mr G for the distress and inconvenience caused by their error.
Remember, don’t give up – with the right steps and support, a CIFAS marker can be removed.
Contact us today for assistance.
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