The Financial Ombudsman Service (FOS) is the UK’s independent body for resolving disputes between consumers and financial businesses. If you believe a CIFAS marker has been applied unfairly or without evidence, and the bank refuses to remove it, the Ombudsman can review your case.
The Ombudsman’s Role in CIFAS #
The Ombudsman was created under the Financial Services and Markets Act 2000 (FSMA). It has the power to:
- Investigate complaints about banks, lenders, and insurers.
- Require firms to compensate customers or remove unfair records.
- Decide cases on the basis of what is fair and reasonable, not just strict law.
This broad test is often helpful for individuals challenging CIFAS markers.
DISP Rules and Complaint Process #
Financial firms are regulated by the FCA’s Dispute Resolution (DISP) Rules. These require firms to:
- Provide a final response to a complaint within eight weeks.
- Inform the customer of their right to escalate the matter to the Ombudsman.
- Cooperate fully with any Ombudsman investigation.
If the bank refuses to remove a marker or fails to respond within eight weeks, you can take your case to the Ombudsman free of charge.
How the Ombudsman Assesses CIFAS Cases #
The Ombudsman will typically look at:
- Whether the bank followed the CIFAS Principles and Standard of Proof.
- Whether the decision to file a marker was proportionate and fair.
- Whether the bank properly considered any evidence of innocence, such as impersonation or coercion.
- Whether the bank complied with data protection law, including accuracy and transparency.
The Ombudsman is not bound by court rules of evidence. Instead, it makes decisions on what it believes is fair, often giving consumers the benefit of the doubt if the bank cannot show clear and rigorous proof.
Why This Matters for You #
For many consumers, the Ombudsman is the most effective route to challenge a marker because:
- It is free and less formal than court.
- It has the power to order removal of the marker if it was unfair.
- It can also award compensation if you suffered distress or financial loss.
If the Ombudsman agrees with the bank, you still retain the option of taking the matter to court.
Key Takeaway #
The Ombudsman provides a vital safeguard for consumers caught by unfair CIFAS markers. It ensures that banks cannot rely on weak evidence or disproportionate measures without scrutiny.
