The Financial Ombudsman Service (FOS) is a free, independent dispute resolution service established under the Financial Services and Markets Act 2000. If a bank or financial institution has refused to remove a CIFAS marker after your formal complaint, the FOS is your primary escalation route.
Can the FOS Handle CIFAS Complaints? #
Yes — but with an important distinction. The FOS can investigate complaints about how an FCA-regulated firm handled your case. This includes:
- Whether the firm conducted a proper investigation before recording the marker
- Whether the firm responded adequately to your complaint
- Whether the recording was proportionate and lawful under the CIFAS Handbook
- Whether the firm failed to consider your evidence or representations
The FOS cannot investigate CIFAS as an organisation directly — they can only investigate member firms (banks, insurers, lenders). CIFAS itself is not regulated by the FCA.
Eligibility Requirements #
- You must have first complained formally to the recording organisation
- You must have received either a Final Response Letter (the firm’s decision) or have waited 8 weeks without a final response
- You must refer the complaint to the FOS within 6 months of receiving the Final Response Letter
The FOS Process — Step by Step #
Step 1 — Submit Your Complaint #
Submit online at financial-ombudsman.org.uk or by post. You will need to provide: your complaint summary, the firm’s Final Response Letter, your CIFAS DSAR, your SAR from the recording organisation, and any supporting evidence.
Step 2 — Initial Assessment #
An adjudicator will review the complaint and may contact both you and the firm for further information. Most cases are resolved at this stage — the adjudicator forms a provisional view and puts it to both parties.
Step 3 — Adjudicator’s Decision #
The adjudicator will issue a written decision. Either party can accept or reject it. If accepted by both, it becomes binding. If the firm rejects it, the case is escalated to an Ombudsman for a Final Decision.
Step 4 — Ombudsman’s Final Decision #
The Ombudsman issues a Final Decision which, if you accept it, is legally binding on the firm. The firm must comply. You are not obligated to accept the Final Decision — if you reject it, you can still pursue the matter through the courts.
What Remedies Can the FOS Award? #
- Direction to the firm to remove the CIFAS marker
- Compensation for financial loss caused by the marker (e.g. a mortgage declined, a bank account closed)
- Compensation for distress and inconvenience (typically £100–£500 but can be higher in serious cases)
- An apology from the firm
Timescales #
Straightforward cases are typically resolved in 3–6 months. More complex cases involving disputed facts, multiple parties, or significant financial loss can take 12–18 months or longer. The FOS manages a high volume of cases and timescales vary.
Parallel Route: ICO Complaint #
You can also file a complaint with the Information Commissioner’s Office (ICO) at ico.org.uk if you believe the recording organisation has breached your data protection rights under UK GDPR. An ICO complaint runs independently of a FOS complaint — you can pursue both simultaneously. The ICO can compel the organisation to delete data and can issue enforcement notices and fines.
