What Are CIFAS Markers and How Do I Remove Them? A Guide to CIFAS Marker Removal: CIFAS Markers Explained

If you’ve ever applied for credit as an individual or a company, you’ve probably come across CIFAS markers or bank fraud indicators. They may make it more difficult to obtain credit, which is a severe inconvenience. If you’re having trouble with CIFAS markers, there are certain things you can do. The article provides some of the most common queries regarding CIFAS markers to provide peace of mind and show you how to move forward.

CIFAS markers explained: Quick Links

• What exactly is CIFAS?
• What are CIFAS markers, and how do they help?
• What’s the difference between a CIFAS marker and a non-disclosure agreement?
• What are CIFAS markers, and how might they affect me?
• Why are CIFAS markers a problem when it comes to obtaining credit?
• What are the different types of markers?
• What happens if we remove CIFAS markers?
• Is there a similar database for bank fraud indicators?
• Setfords can assist you with the removal of markers.

What is CIFAS, and how does it work?

The Credit Industry Fraud Avoidance System (CIFAS) is a not-for-profit fraud prevention membership organization that maintains a large database of fraudulent behaviour in the UK. CIFAS is an organization dedicated to fighting fraud and crime. Many sectors are represented among its members, including most financial institutions, who utilize it to report and access data on potential fraud.

What are CIFAS markers and what do they signify?

When a financial institution, such as a bank, insurance company, or loan firm, suspects that you or your company have been involved in a financial crime and places CIFAS markers on your credit report, it is called an adverse decision. Other organizations may then use this indicator to learn more about you and the potential hazards of lending to you.

What should I do if I’m worried that my Internet account has been disabled?

Many individuals who have a CIFAS marker are unaware of it until they apply for some type of credit and are turned down.

CIFAS will be able to show a record of your CIFAS marker on your credit report if you have been the victim of fraud. The only way to find out about it is by making a Data Subject Access Request to CIFAS itself unless you have one of two types of markers (Victim of Impersonation or Protective Registration). This is because the financial institution that placed the marker on you in the first place has no legal responsibility to inform you about it or why it is there.

How can CIFAS markers affect me?

A CIFAS marker against you may result in the following negative consequences:

• The most common result is that you will be unable to obtain credit approval, such as a mortgage, automobile loan, overdraft, cell phone contract, or insurance policy. You may still be turned down even if your application goes through extra checks.
• Even if your accounts are not affected, financial institutions may decide to close them if they become concerned about activities on any of them.
• The application for a new bank account is almost certain to be rejected.
• The Student Loans Company, a member of CIFAS, may reject your application for student loans if you are under 21 years old and do not have a bank account.
• A CIFAS marker may harm your career or prevent future job applications from being accepted if you work in the financial services industry.
• If a company’s board members have red flags, it may be unable to obtain loans or other types of credit and banking services.

This is not an exhaustive list, and there are several ways in which a CIFAS marker may harm you or your business. If you’ve been affected, get in touch with us right away to talk about your alternatives.

Why are CIFAS markers a roadblock to obtaining credit?

Richardson Lissack’s consultants pick a more flexible, balanced, and satisfying job. A lot of credit applications are automatically investigated. When applying for a store credit card, vehicle financing, or even a personal loan, for example. If a CIFAS marker is recorded against you, this automated procedure will not be allowed to proceed; your application will have to go through additional checks.

Furthermore, financial institutions may be more reluctant to lend to those with a CIFAS marker because of their previous history.

What are the different types of markers?

There are eight distinct types of CIFAS markers. Each one stands for something unique, and they all have different durations. They are as follows:

• Protective Registration. If you believe you’ve been a victim of identity theft, this is a signal that you may pay directly to CIFAS or another third-party service. It lasts for two years.
• Victim of Impersonation. This is a security document filed by a lender in the case that you have been a victim of identity theft. It lasts for 13 months and is renewable annually.
• First-party fraud. This is a defence that may be utilized if the defendant had no intention of repaying future instalments of swapped goods or services. It can last up to six years in duration.
• Facility Takeover. When a bank account is taken over and used for unauthorized transactions, this marker is recorded. It lasts up to six years.
• Misuse of the facility. This is when someone opens a fraudulent account to use it for illegal purposes. It may endure for up to six years.
• Asset conversion. When an individual sells items they do not own, such as a car under a hire purchase agreement, condition sale, contract hire, leasing or rental agreement, the transaction is recorded by this marker. It may stay on your record for up to six years.
• Application fraud. When someone uses their real name to apply for credit but fraudulent information such as employment, pay, address, or counterfeit documents, this is known as false identity fraud. It can last up to six years in some cases.
• Insurance claims fraud. This signature may be used by the Department of Insurance to indicate that when consumers acquire financial insurance, they are deceived. It lasts up to six years and is filed if incorrect information is given while pursuing a monetary insurance claim.

How can CIFAS markers be removed?

A CIFAS marker from a financial institution may be quite inconvenient. In certain situations, it is feasible to have them removed before the deadline has passed.

Removing the CIFAS marker can be difficult, as it is a complicated topic. As a result, before you begin, it’s advisable to consult with a lawyer who is an expert in this area to see if removing your marker is feasible and what actions you’ll need to take to do so.

The first thing you should do is get a CIFAS report that reveals the details of your marker. This will show you what has been charged against you and by whom. You can then try to obtain more information from the financial institution that filed the marker, but they are not legally required to provide any further information beyond your bank statements.

You and your lawyer can then go after the financial institution directly. You’ll almost certainly have to show why the marker should be revoked; simply stating that it was maliciously filed is insufficient.

The credit grantor will then issue its final response. If they decline to delete the marker, you can take them to court; CIFAS must reply within 14 days.

If CIFAS refuses to remove the offender, a complaint may be filed with the appropriate ombudsman or similar body. This is generally the Financial Ombudsman Service for banks or the Communications and Internet Services Adjudication Scheme for mobile phones in this scenario.

If you still cannot get rid of the CIFAS marker, a court review or injunction may be available in a limited number of situations. If this fails to remove the CIFAS marker for you, your lawyer will advise on whether and how to pursue judicial review or an injunction.

Are there any other databases or bank fraud markers?

There are two additional comparable databases in the United Kingdom, but they contain far less information about a person. SIRA and National Hunter are two such examples. National Hunter also makes use of terms like ‘inconsistency’ and ‘suspicious’ to determine whether someone’s account status is “clear” or “refer.”

In certain situations, you may be able to challenge these databases in the same way as a CIFAS marker. Your solicitor will be able to assist you with this.

How Richard Lissack can help with marker removal

Richard Lissack can help if you think you have been the victim of a CIFAS marker unfairly filed against you or your company and have grounds to dispute it. We have solicitors with extensive knowledge in this area who can assist you in coming to a resolution. Please contact us right away to talk about your situation and how we may assist you.