Key takeaways
- You complain to the bank or lender that filed the marker first. The Ombudsman will not usually be your first stop.
- The Ombudsman’s limit is 6 months from the date on the firm’s final response.
- It checks whether the firm had reasonable grounds and evidence that was clear, relevant and rigorous.
- If it upholds your complaint it can direct the firm to put things right, which may include compensation.
- It cannot look at complaints against Cifas itself, only about the business that reported you.
This guide covers one step in challenging a marker: the Financial Ombudsman Service. For the whole route, including your data request, Cifas’s review and the ICO, see how to get a CIFAS marker removed.
Can you complain to the Financial Ombudsman about a CIFAS marker?
Yes, if the marker was filed by a bank, lender or other financial business. The Ombudsman says it looks at complaints about the financial businesses that reported information to a fraud prevention agency. It says it cannot look at complaints against the fraud prevention agencies themselves.
So a complaint to the Ombudsman is about what the firm did: whether it was right to record the marker. It is not a complaint about Cifas or its database.
What do you have to do before going to the Ombudsman?
The Ombudsman’s process has three steps.
- Complain to the financial business. Tell it what has happened. Cifas gives the same starting point: contact the organisation that registered the warning and follow its complaints procedure.
- Wait for the final response, or for the time limit to pass. For most complaints a business has up to 8 weeks to consider a complaint and send a final response. The Ombudsman says the period is shorter for some types of complaint, such as payment services complaints (the FCA rules give 15 business days, extendable to 35 business days in exceptional circumstances). The firm’s final response will say how long you have. If you have not had a response within the time limits, the Ombudsman says you can refer your complaint to it.
- Bring your complaint to the Ombudsman. The date on the final response is the date the time limit runs from (see below).
You can also ask the filing firm for a final response in writing if you have not been given one. Cifas describes a final response as confirming that the firm has investigated and is rejecting your complaint.
How long do you have to complain to the Financial Ombudsman?
The Ombudsman says you need to complain to it within 6 months from the date on your final response.
The FCA rules that govern this (DISP 2.8.2R) say the Ombudsman cannot consider a complaint referred more than six months after the date the firm sent its final response. The FCA’s guidance says the six-month period is triggered only by a final response (or equivalent) that tells you about the time limit.
The rules also set outer limits: more than six years after the event complained of, or, if later, more than three years from when you became aware, or ought reasonably to have become aware, that you had cause to complain. The rule does not apply if you referred the complaint to the firm or to the Ombudsman within that period and have a written acknowledgement or some other record that it was received.
A late complaint can still be considered if the Ombudsman believes the delay was due to exceptional circumstances, or if the business consents.
The six months run from a final response that tells you about the limit, not from the day you found out about the marker. If you are near the limit, get advice.
What does the Financial Ombudsman look at?
The Ombudsman’s guidance lists what it considers when it looks at a fraud marker complaint:
- whether the customer met the test for recording fraud markers set by the fraud prevention agencies
- whether the firm had “reasonable grounds to believe that fraud or a financial crime had been committed or attempted”
- whether the evidence was “clear, relevant and rigorous”
- whether any mistakes were made in recording the information, and whether the entry is accurate
Published decisions apply the same test. Two of them say the firm must have more than a suspicion or a concern that the customer was involved, and that it should give the account holder an opportunity to explain what was going on. Another says that if the firm cannot meet the required standard of proof, it cannot reasonably record a marker.
The Ombudsman’s guidance for businesses also lists the evidence a business will need to provide, such as fraud reports from other banks, call recordings, account statements, the account’s terms and conditions, and online banking records.
What can the Financial Ombudsman order?
If the Ombudsman upholds a complaint, it directs the firm to put things right. Its guidance says that can include compensation for distress or inconvenience.
In one published decision (DRN-4936783) the Ombudsman directed a bank to remove the marker and pay £350 compensation. It found the bank had not shown the evidence was clear and rigorous, and noted that the chat history did not show the bank asking the customer about the payments or for evidence before recording the marker. In another (DRN-5890520) it directed removal, saying suspicion that the customer may have known what was going on was not enough.
In a third (DRN-6114852) the Ombudsman did not uphold the complaint and did not ask the bank to remove the marker, finding the customer knew the funds were fraudulent. The customer had given the bank several inconsistent explanations for a payment into their account.
Each decision turns on its own facts. These three show the same test applied to different evidence. They do not tell you how your complaint would be decided. Decisions are also put to the complainant to accept or reject.
What can’t the Financial Ombudsman do?
It cannot look at complaints against Cifas or any other fraud prevention agency. If you want to dispute the record with Cifas, Cifas says you can share the filing firm’s final response and it will carry out an independent review on your behalf, aiming to resolve investigations within one month. Cifas says it does not have the power to recommend financial awards.
The ICO deals with complaints about how an organisation has used your personal information. It recommends that in most cases you raise the concern with the organisation first and give it a chance to put things right. Our removal guide explains how data protection rights fit into the wider route.
Where can you get advice?
If your complaint is complex, or you are close to a time limit, you can find a solicitor in our directory. FraudMarkers is independent and is not affiliated with any firm listed. The Ombudsman says its own service is free and that you do not need to pay anyone to represent you.