The acceptance of individuals with CIFAS markers varies across banks, and each financial institution may have its policies regarding such markers. Some banks may consider applicants with them under specific circumstances, while others might have more stringent criteria and may decline services to individuals with such markers.
Further, it’s essential for individuals with them to directly inquire with prospective banks about their current policies and willingness to provide services. Being transparent about the CIFAS marker during the application process and providing any requested documentation or explanations is generally recommended to facilitate an informed decision by the bank.
Keep in mind that policies may evolve, so staying updated with the specific practices of each bank is crucial.
What are CIFAS markers?
CIFAS markers are indicators placed on an individual’s credit file within the Credit Industry Fraud Avoidance System (CIFAS) in the United Kingdom. CIFAS is a not-for-profit organization that serves as a collaborative platform for various financial institutions, including banks and insurance companies.
Moreover, the primary purpose of CIFAS is to combat fraud within the financial services sector by allowing its members to share information about potential fraudulent activities or individuals deemed to present an unacceptable risk.
When a member organization suspects that a customer has been involved in fraudulent behavior or poses a risk to their business, they report this information to CIFAS in the form of markers. These markers act as warnings to other financial institutions, signaling that the individual in question may be associated with a heightened risk. The markers use a coded system to provide broad details about the nature of the risk.
The key features of CIFAS markers include:
- Database Management: CIFAS manages the largest database of fraudulent conduct in the UK, containing information reported by its member organizations.
- Fraud Risk Reduction: They aim to reduce fraud risk in the financial services sector by facilitating the sharing of information among member institutions.
- Impact on Credit Applications: Once it is present on an individual’s credit file, applications for credit or other financial services may be subject to additional checks. In some cases, these applications may be refused based on the information provided by it.
- Confidentiality: Unless an individual has been a victim of fraud, the existence of CIFAS markers is typically not disclosed on credit reports generated by credit reference agencies.
- Consequences for Individuals and Businesses: They can have significant consequences for individuals, impacting their ability to obtain credit, financial services, or even employment. For businesses, CIFAS markers can lead to loan refusals, account closures, and other challenges.
Different Types Of Markers Which Last For Different Lengths Of Time
- Protective Registration:
- Description: A consumer-paid service typically utilized by those who have fallen victim to fraud.
- Duration: Last for two years.
- Victim of Impersonation:
- Description: Pertains to individuals who have experienced identity fraud.
- Duration: Last for 13 months.
- First Party Fraud:
- Description: Involves situations where there is no intention to fulfill the commitment for future repayment in exchange for goods or services.
- Duration: Persists for up to six years.
- Facility Takeover:
- Description: Occurs when a fraudster gains control of a bank account, making unauthorized transactions or altering account details.
- Duration: Last for up to six years.
- Misuse of Facility:
- Description: Involves obtaining an account or other facility to use it for fraudulent purposes.
- Duration: Endures for up to six years.
- Asset Conversion:
- Description: Encompasses scenarios where an individual sells goods they do not own, often under hire purchase, conditional sale, contract hire, leasing, or rental agreements—commonly involving motor vehicles.
- Duration: Can last for up to six years.
- Application Fraud:
- Description: Involves the submission of an application in the customer’s name using false details, such as salary, address, employment information, or falsified documents.
- Duration: Persists for up to six years.
- Insurance Claims Fraud:
- Description: Occurs when false information is provided on an insurance claim.
- Duration: Last for up to six years.
How are CIFAS markers removed?
Removing CIFAS markers involves a structured process, and seeking legal advice before initiating the procedure is advisable due to the complexity of relevant laws. Successful challenges typically require individuals to substantiate their innocence.
- Obtain CIFAS Report:
- Request and obtain a report from CIFAS to understand the details of the allegations and the party reporting the marker.
- Assess Information:
- Examine the CIFAS report to assess the nature of the allegations and gather necessary details, although the report may not provide extensive information.
- Request Information from the Bank:
- Seek information from the bank involved, although they may not be obligated to disclose specific details related to suspected fraudulent activity. However, they are obligated to provide bank statements.
- Direct Challenge to the Bank:
- Challenge the marker directly with the bank by providing a detailed and comprehensive response. A generic request for removal based on fairness or potential adverse impact is unlikely to suffice.
- Receive Final Response from the Bank:
- Await the bank’s final response. If they decline to remove the marker, the individual can proceed to the next step.
- Challenge CIFAS Directly:
- Lodge a challenge directly with CIFAS, which is obliged to respond within 14 days. Provide all relevant evidence and arguments to support the case.
- Seek External Resolution:
- If CIFAS upholds the decision and refuses to remove the marker, individuals can escalate the matter to external bodies for resolution. This may involve:
- Financial Ombudsman Service (FOS): Applicable for challenges against banks and financial institutions.
- Communications and Internet Services Adjudication Scheme (CISAS): Relevant for challenges related to mobile phones.
- If CIFAS upholds the decision and refuses to remove the marker, individuals can escalate the matter to external bodies for resolution. This may involve:
- Legal Remedies:
- In certain circumstances, if appeals to external bodies prove unsuccessful, individuals may explore legal remedies. This could involve:
- Judicial Review: Challenging decisions through the judicial review process.
- Injunction: Seeking an injunction to address the matter.
- In certain circumstances, if appeals to external bodies prove unsuccessful, individuals may explore legal remedies. This could involve:
Here are some tips for opening a bank account with a CIFAS marker
When attempting to open a bank account with a CIFAS marker, consider the following tips:
- Transparent Communication:
- Be honest and upfront with the bank about the existence of the CIFAS marker. Concealing information can lead to complications.
- Provide Explanation:
- Clearly articulate the reason behind it and elaborate on the steps taken to address the issue. Transparency and a proactive approach can build trust.
- Documentation Support:
- Be prepared to furnish supporting documentation, such as a police report or a letter from CIFAS, to validate your explanation and demonstrate efforts to resolve the matter.
- Apply to Multiple Banks:
- Submit applications to several different banks. Banks have varying policies, and some may be more accommodating than others in light of CIFAS markers.
- Consider Basic Bank Accounts:
- Explore the option of opening a basic bank account. These accounts typically offer limited services but may have less stringent eligibility criteria, making them more accessible with a CIFAS marker.
Challenging Entries in SIRA and National Hunter Databases: A Comprehensive Guide
Additional fraud databases, such as SIRA and National Hunter, contain limited data, including the applicant’s name, date of birth, address, phone numbers (both home and mobile), and email address as provided in an application.
SIRA:
- Data Held: Limited information including applicant details.
- Assessment Categories:
- Clear: Indicates no apparent issues, and the assessment stays on SIRA for two years.
- Refer: Suggests that the application requires further investigation, and the assessment remains on SIRA for six years.
National Hunter:
- Data Held: Similar to SIRA, includes basic applicant information.
- Assessment Categories:
- Clear: No evident concerns about the application.
- Refer: Implies that further scrutiny of the application is necessary.
- Inconsistency: Flags concerns about inconsistencies in the information provided.
- Suspicious: Indicates suspicions regarding the information supplied.
Challenging Entries:
- Request and obtain reports from SIRA and National Hunter to understand the details of entries.
- Assess the information provided to gauge the nature of concerns or assessments (‘clear,’ ‘refer,’ ‘inconsistency,’ ‘suspicious’).
- Challenge entries directly with the respective database by providing a comprehensive response, addressing concerns, and presenting evidence to support the challenge.
- If entries are not removed, escalate the challenge to relevant external bodies or ombudsman services, if applicable.
- Consider seeking legal advice for structured and detailed challenges.
In addition, taking a similar approach to CIFAS marker removal, individuals can challenge entries on SIRA and National Hunter by presenting well-substantiated arguments and evidence.
Also, the goal is to address concerns, correct inaccuracies, and seek the removal of entries that may adversely impact credit applications or other financial transactions. Legal advice can be beneficial in navigating the complexities of the challenge process and improving the chances of a successful resolution.
Final Words:
In summary, whether a bank accepts individuals with CIFAS markers depends on each bank’s specific rules. Some banks may consider customers with these markers under certain conditions, while others may not. It’s important to be open about the CIFAS marker when applying for an account and provide any documents or information the bank asks for.
Further, keep in mind that each bank has its own policies, so it’s a good idea to check directly with them for the most accurate and up-to-date information.