CIFAS - Application Fraud

needalittlehelp

Hi Everyone,

Hope someone could help me out - as I been rejected for bank account and been told its something to do with records on CIFAS. I have requested data from CIFAS and the issue is with regards 'Application Fraud' when I went through mortgage application with broker.

Couple of questions:
-I have challenged the company in question about the record and they just say its nothing to do with them and I should contact the mortgage broker in question. But surely if the record is placed by the company and not the broker its their issue?

- How long does the 'Application fraud' record stay on file for? As its over a year since this record.

Any help or advice on next steps?

Thanks in advance for any replies

needalittlehelp

Thrugelmir

May be worth contacting National Hunter to see what on's your record.

http://www.nhunter.co.uk/

gunsandbanjos

Cat 03/04 are application fraud cifas markers, the chances of you getting any kind of credit with them on your file is slim!

The markers would have been loaded by the member the fraud was against.

starM

needalittlehelp wrote: »

Hi Everyone,

Hope someone could help me out - as I been rejected for bank account and been told its something to do with records on CIFAS. I have requested data from CIFAS and the issue is with regards 'Application Fraud' when I went through mortgage application with broker.

Couple of questions:
-I have challenged the company in question about the record and they just say its nothing to do with them and I should contact the mortgage broker in question. But surely if the record is placed by the company and not the broker its their issue?

- How long does the 'Application fraud' record stay on file for? As its over a year since this record.

Any help or advice on next steps?

Thanks in advance for any replies

needalittlehelp

1). First of submit a complaint to the mortgage company. It will be best to contact the mortgage broker and see what information he submitted during the application. In your complaint provide evidence that the data is true and accurate.
2). The mortgage company should write back to you with their response. The letter will state if that is a final response. Take your complaint further to CIFAS. http://www.cifas.org.uk/dispute_a_warning_can_I_get_it_amended_removed

My wife had a problem with CIFAS not very long ago for a bank account application. CIFAS entry was removed when further details was provided.

I did email CIFAS asking how long it is kept as I read someone that its 13 month. They replied back saying it use to be 13 months but its been 6 years for some time now.

Its really poor by banks to load CIFAS without informing the customer in order further evidence can be provided. Majority of people do not know anything about CIFAS. They will just obtain their credit report which will not show "Application Fraud entry". They will go ahead and apply for credit which will be declined.

Regards
MS

Buzby

Banks do not warn applicants for very obvious reasons - it would sleet the applicant that their possible scam had been discovered. The broker is your (and their) agent, so they are first port of call to discover, and hopefully rectify if a genuine issue has arisen.

pvt

If you look at your information on any credit reference agency it will show what CIFAS markers you have against you, and exactly who put them there. Noddle is free to use and will show you data held about you by CallCredit.

It is the company that put the marker there that you need to take it up with, so it is likely to be the lender and almost certainly not the broker.

The lender that put the CIFAS marker on must justify to you why they did it, and if you demostrate that they have done it incorrectly, they (and only they) should remove it.

If the lender will not agree with you, or there is a disagreement about information given, then you must first complain to the lender and follow their dispute process.

If it is still not resolved then, as StarM has said, you need the lender to provide a 'final response'. Then, and only then, you can lodge an appeal with CIFAS.

I have been through this process when a company I had had no dealings with gave me a CIFAS Cat 1 marker. They steadfastly refused to remove it, despite it being clear that it was incorrect. Only when I repeatedly demanded either a letter of deadlock or a final response did they respond - buy removing the marker.

All the advice provided above is of course contingent on the marker being incorrect. You haven't indicated the circumstances around why they put it there. I am guessing here that the lender found that something on the application was wrong, or that fake supporting documentation was submitted with it.

Tell us more about the circumstances and we may be able to help further.

Tillytwopaws

I have a cat 4 CIFAS marker and am currently considering taking action against the lender which involves a forensic accountant and solicitor.

A lender placed the marker after I applied for a remortgage. I submitted my company accounts covering one year, 6 months payslips and contracts whilst working under an umbrella company and also an income projection. The lender asked for permission to approach HMRC for the SA302 document which I had no objection to. A couple of days later the marker was applied. The figures on the SA302 did not line up with my company accounts which they never would as my accounts do not line up with the tax year.
My company accounts are reported to the FCA so I cannot and would not risk my livelihood within the financial services sector. The worst thing is that even if the lender did not want to take my company accounts, the remortgage would have been within their affordability criteria if the figures from the SA302 were used. None of the documents I supplied I support of the application were generated by me, ie copies of contracts declaring my day rate, accounts from the accountant, HMRC documents - nothing generated by myself.

The action of placing the marker against me is totally unwarranted, at no time did the lender seek to clarify any aspect of my income or application. I know I have not been treated in accordance with other cases submitted to this particular lender.

I now cannot remortgage, I have no access to loans, and the only way I can get rid of the marker is if the lender chooses to remove it. CIFAS were not interested in whether it had been placed correctly and fairly. The marker is also recorded on National Hunter. This whole experience is stressful, frustrating and annoying and that to sort it out all it would take is one person to understand the basic details of the case. The letters I've received I response to my CEO complaints highlight the fact that the complaint handler does not understand the case. He even admitted he did not know what impact a CIFAS marker would have upon a person's life, when I read that I almost cried. I'm a complaint handler and would never admit to a customer that I did not know my facts because I'd make sure I did!!

I've even considered going to the press, but I daren't put my head above the parapet! In all the searches I've done the internet I've yet to find someone that has successfully had a Cat4 removed.

Tixy

Tillytwopaws wrote: »

This whole experience is stressful, frustrating and annoying and that to sort it out all it would take is one person to understand the basic details of the case. The letters I've received I response to my CEO complaints highlight the fact that the complaint handler does not understand the case. He even admitted he did not know what impact a CIFAS marker would have upon a person's life, when I read that I almost cried. I'm a complaint handler and would never admit to a customer that I did not know my facts because I'd make sure I did!!

So you've made a formal complaint to the lender who added the marker?
Is it in response to this that you have received a letter that say states the part in bold above? Does that letter from them say they will investigate further or what action they intend to take?

If not how have you replied to that letter?

If/when you have exhausted their complaints procedure then I would make a complaint about the lender to the ICO.

Tillytwopaws

Hi Tixy, I've replied to every letter the lender has sent me, the information provided to me is sparse with a repeated requests for three year's SA302s which at the time I could not provide. Now that the marker has been in place since November 2012 I have got the three year's worth.

I see it that I have one strike to get this sorted out now, and so far I've been advised to get my accounts and SA302s looked at by a forensic accountant so a letter can be provided to confirm that my earnings and expenses, accounts etc all tally up. That's together with a solicitor and a barrister at an additional cost of £1500 to write me a further letter. I'm not seeing the point in a barrister as I can't afford to take it to court. I've also been advised by a solicitor that used to work on behalf of lenders that the lender will fight me because there's a danger of a precedent being set.

I've already had my accounts certified, and provided proof to the lender that I've paid a corporation tax bill on the amount stated in the accounts that I provided with the original application.

Sorry Needalittlehelp, I didn't mean to hijack your thread, I just threw this in there in that hope that something I say may help someone, or someone has a great idea.... And I'm not being mean but I feel a bit better knowing it's not just me with this problem! :-)

Tixy, why do you think the ICO would be able to help?

pvt

Tillytwopaws,

You should have started your own thread, not just hijacked this one.

The procedure to follow is to formally dispute this with the company that applied the CIFAS marker. If they will not remove it and you believe it is incorrectly applied, you have to exhaust their complaints procedure and get a letter of deadlock or final decision letter from them.

When you have this, and only when you have this, you can contact CIFAS and follow their disputes procedure.

I'm curious what exactly the lender is citing as the grounds for application fraud, have they made that clear to you?

[Deleted User]

Tillytwopaws wrote: »

Tixy, why do you think the ICO would be able to help?

Presumably because of principle 4 of the DPA.