CIFAS marker removal

What are CIFAS markers?

CIFAS, or the Credit Industry Fraud Avoidance System, is a not-for-profit organisation to which banks and other financial institutions such as insurance companies are members.

CIFAS manages the largest database of fraudulent conduct in the UK.  Member organisations report, or load, information onto the database where it is suspected that a customer has been involved with fraudulent activity or they present an unacceptable risk to its business.  Those reports are known as markers and act as a warning to other financial institutions that the customer in question presents a risk, and provides in broad detail through a code system the nature of that risk.

The aim of the database is to reduce fraud risk in the financial services sector by sharing information on customers.  Once a CIFAS marker has been highlighted applications for credit or other financial services may be subject to further checks and thereafter may be refused.

Unless you have been the victim of a fraud the existence of such markers is not shown on credit reports generated by organisations such as Experian, and many customers may be blissfully unaware that they have had them marked against their credit history.

Such markers become an issue for customers when applications for credit are made, such as on mortgage applications, car finance or for insurance products, and when applications are made for overdrafts or new banking facilities.  Where financial institutions become so concerned about activity reported on accounts they can decide to close them even if those accounts are unconnected.

Frequently CIFAS markers can have adverse effects on entire businesses and, where directors have had markers loaded against them, we have seen many instances where Bounce Back Loans or other forms of lending have been refused and accounts closed.

For those employed in the financial service sector then CIFAS markers can have a dramatic and negative impact on careers and, because such organisations regularly check staff credit profiles, we have successfully acted for many individuals sacked as a result of markers being present.  Markers can also prevent applicants being offered positions.

CIFAS markers can affect Student Loan Applications too – the Student Loan Company Ltd is a member of CIFAS and unless students have bank accounts they cannot receive their money.

In order to ascertain whether you have such a marker registered against you then you need to make a Data Subject Access Request to CIFAS https://www.cifas.org.uk/contact-us/subject-access-request/subject-access-request-form which will then produce a report outlining the nature of the markers and the organisations that have loaded it.

There are 8 different types of marker which last for different lengths of time:

1. Protective Registration: this is a paid for service by a consumer, for example where they have become a victim of fraud, and lasts for two years;
2. Victim of Impersonation: this relates to victims of identity fraud and lasts for 13 months;
3. First Party Fraud: where there is no intent to repay the promise of future repayment in exchange for goods or services, and lasts for up to six years;
4. Facility Takeover: where a bank account is taken over by a fraudster and used for unauthorised transactions, or the details are changed, and lasts for up to six years;
5. Misuse of Facility: where an account or other facility is obtained with the intent of using it for a fraudulent purpose, and lasts for up to six years.
6. Asset Conversion: where an individual sells goods, which they do not own, under a hire purchase, conditional sale, contract hire, leasing or rental agreement, most often involving motor vehicles, and can last for up to six years.
7. Application Fraud: where an application is made in the customer’s name but false details, such as salary, address, employment or falsified documents are used, and can last for up to six years.
8. Insurance Claims Fraud: such as where false information is provided on an insurance claim, and last for up to six years.

How are CIFAS markers removed?

CIFAS markers can be challenged, and it is always best to take legal advice before beginning the process rather than undertaking the work yourself – in our experience the best challenges are detailed and the law surrounding them is complicated.  People wishing to challenge markers have to be able to prove their innocence.

Once you have obtained a report from CIFAS, as explained above, you can assess what to do next, and although the report is unlikely to contain a great deal of detail we will need to see it to assess what has been alleged and by whom – sometimes this can be surprising.

The next step is to obtain as much information as possible from the bank.  However banks are not under a duty to provide details where they suspect fraudulent activity has taken place but they are under a duty to provide you with your bank statements.

Ideally a challenge should be made direct to the bank at this point – we always prepare these challenges as if they will be seen by an Ombudsman or even the High Court, so they have to be as detailed as possible.  Simply asking for the marker to be removed because it is not fair or it will adversely impact on your life will not be sufficient.

The institution will then issue final response.  If they refuse to remove the marker then a challenge can be made to CIFAS direct, which has a duty to respond within 14 days.

If CIFAS uphold the decision and refuse to remove the marker, a compliant can then be made with the Financial Ombudsman Service “FOS” (for banks etc) or the Communications and Internet Services Adjudication Scheme (CISAS) (for mobile phones).

If appeals to an Ombudsman fail then in certain limited circumstances it might be possible to challenge their decisions through judicial review or by way of injunction.

Other Fraud Databases: SIRA and National Hunter

These databases hold limited data including an applicant’s name, date of birth, address, phone number(s) (home and mobile) and email address which have been provided on an application.

SIRA’s members supply limited data but also an assessment: ‘clear’ or ‘refer’, the latter indicating the member believes the application requires further investigation. ‘Clear’ assessments stay on SIRA for two years and ‘refer’ assessments stay on for six years.

National Hunter, members of which are all regulated by the FCA, has similar ‘clear’ or ‘refer’ markers, but also use ‘inconsistency’ and ‘suspicious’ to describe concerns about information supplied by applicants.

The same approach to CIFAS marker removal can be taken to challenging entries on these two databases.

For more advice about CIFAS markers, We regularly produce blogs on the subject links to which can be found here: