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CIFAS markers indicate the placement of a fraud marker against an individual’s name. They can prevent applications for mortgages, credit, or even smaller services like phone contracts.
In extreme cases, they can lead to the closure of an existing bank account. CIFAS markers can last up to 6 years, but the good news is that sometimes they can be removed. Luckily, you can accomplish most of these steps without the need of a solicitor.
Changes to our CIFAS marker removal services
Once a CIFAS marker has been placed against you, it is highly unlikely that you will be successful in removing it without significant cost which will often outweigh the amount of money frozen.
For this reason, our CIFAS marker removal services are only open to company directors, partners or anyone whose business is at risk from a continued marker.
Please note that we cannot offer CIFAS marker removal services for persons without commercial interests.
What is CIFAS?
CIFAS stands for ‘Credit Industry Fraud Avoidance System‘. CIFAS is a not-for-profit fraud prevention organisation hosting a database that holds details of fraudulent activity across the UK.
Additionally, financial organisations that have a membership with CIFAS will be able to access this information to reduce the risk of fraud and financial loss for both themselves and other CIFAS members.
What is a CIFAS marker?
CIFAS place markers against a customer’s credit report if an organisation, such as a loan or insurance company, suspects that you have engaged in fraudulent activity. Other services can then also access this information to gain knowledge about you and the potential risks of lending to you.
CIFAS markers can become hugely problematic when businesses or their directors have a marker flagged under their names. In severe cases, finance organisations refuse loans, close accounts and members end up losing capital or even their jobs.
CIFAS marker types.
CIFAS prescribes 8 different types of markers for different types of fraud, lasting for various amounts of time:
- First-party fraud. When a customer has not paid owed payment for goods and has no intention of paying it. Lasts up to 6 years
- Insurance claims fraud. When you give incorrect information when making an insurance claim. Lasts up to 6 years
- Facility Takeover. When a bank account has been taken and used by someone else for unauthorised transactions. Remains for up to 6 years
- Protective Registration. A marker that you request and pay for directly to CIFAS if you believe you have been a victim of fraud, lasting for 2 years
- Victim of Impersonation. A marker filed for your protection by a lender if you have been a victim of identity fraud. Lasts up to 13 months
- Application fraud. When an application is made for credit using a correct name, but false details have been provided. Lasts up to 6 years
- Asset conversion. Issued when somebody has sold goods that have been hired, rented or leased, such as a hire car. Lasts up to 6 years
- Misuse of facility. A marker is placed when someone gains control of another person’s account for the purpose of fraudulent activity. Lasts up to 6 years
How to remove a CIFAS marker.
Though you may have suffered significant losses from the outcomes of a CIFAS maker, you can still attempt to have a marker removed. CIFAS markers can last up to 6 years and can ruin businesses, relationships and careers. Our solicitors have a proven track record of assisting clients in the removal of CIFAS markers. So, get in touch and we can help you.
However, if you are an individual with a CIFAS marker held against your name, you should take these initial steps:
Step 1. The first step in removing a CIFAS marker would be to make a Direct Subject Access Request (DSAR) directly to CIFAS, which requests details of the marker held on their database.
Step 2. Contact the organisation that had your marker issued by CIFAS and request for them to have the marker removed.
Step 3. If they deny your request to have the marker removed, contact CIFAS and request for a review, to which they must respond in 14 days.
Step 4. If your review still is not successful, we would recommend that you get in touch with one of our specialist litigation solicitors for legal assistance in this matter.
How do you get a CIFAS marker?
As discussed in the different types of markers, there are a multitude of reasons why CIFAS might put a marker next to your account. However, you might be most surprised about getting a CIFAS marker if you have been a victim of fraud. These types of markers are purely for your protection and can be easily removed with the correct guidance.
A CIFAS marker may only become known to you when you make an application for credit, such as a mortgage or insurance package.
What do CIFAS markers affect?
CIFAS markers will be shared with other financial institutions, so they will be likely to affect applications that you make from any lender, such as a bank, loan company, insurer, or mortgage broker.
These are just a few ways that a CIFAS marker might affect you:
- One of the most common impacts is struggling to have credit applications accepted such as a mortgage, car insurance, an overdraft or a mobile phone contract
- The bank declining your new account application
- You may also struggle to get a student loan as you will need a bank account; the student loans company is a member of CIFAS
- Financial institutions that become aware of your marker may close your account
- If you are employed in the financial sector, you may lose your job with a marker held against your name
Does a CIFAS marker show on a criminal record?
CIFAS markers are purely suggestive of financial misconduct and are not recorded on any criminal record. It would only be likely to feature on a criminal record if you were facing prosecution for fraud.
Can employers become aware of a CIFAS marker?
This depends on the type of employer. If the company is a CIFAS member, they can request this data as a pre-employment screening check.
Our solicitors often deal with situations where employees have lost their jobs for having a CIFAS marker held against their name. If you have had a similar experience and need legal assistance, get in touch.
Other fraud databases.
There are two other similar databases in the UK that offer similar but more limited information about individuals.
Firstly, National SIRA is regarded by many financial institutions as the default fraud detection and prevention solution association. Markers placed by National SIRA ‘clear’ or ‘refer’ your data, with the latter directing that the member requires further investigation.
National Hunter has the same clear/refer markers, also with ‘inconsistency’ and ‘suspicious’ markers to denote information supplied by organisations.
National SIRA and National Hunter markers can be removed in the same way as CIFAS markers, by challenging them directly.
Wow, great information as always Britton and Time Solicitors!