CIFAS CAT3 marker

[Swino19]

Good afternoon

I’ve been accused of conducting fraudulent activity on a persons bank account, the person that is accusing me has said that he has no knowledge of me and that he never gave me permission to use his bank account or set it up. As a result of his complaint to the bank, my accounts have been closed down and a CAT3 CIFAS market placed against my name.

In June 2016, myself and the accuser set up an agreement to do matched betting. The accuser is a family members best friend which I’ve known for 10 years. I would perform the transactions for him and we agreed to this in full (I have full proof of all this through Facebook chat logs). He was having trouble opening an account online so I offered to do it for him with his permission if he sent me his details, which he did and was happy to do. Initially he made money form the method and payment was made.

Over the last few years I’ve sporadically used the bank account but didn’t make any money from it due to the risk nature of the betting, I believe the accuser thinks I’ve made money without his knowledge. This i believe is the reason for him lying and saying I’ve committed fraud on his account.

I went into the bank to try to explain the situation as I have full proof of him sending me;

A) his full permission to open the bank account along with all details
B) his full permission to use the bank account, as the bank card and everything went to his home address I have proof of him sending me his card and details
C) reviving payment from me for the agreed arrangement

I need to know what my rights are and if I can dispute the CIFAS marker, the bank said the only way they can discuss this further is if the account owner goes into branch and admits everything. However he won’t speak to me and has said verbally he doesn’t care what happens to me.

Is there any advice or help you can give me on this matter, do I have a case to take this further and dispute the marker. I understand that the accounts are closed as it may breach the terms of the account, however when I’ve looked through he terms it states;

Bank account conditions;

2.2 - not let anyone give instructions or access information on your accounts unless they have a separate arrangement with us or you have authorised them to operate your account for you

You must contact us when

2.3 - think someone has access to your account without authority or has discovered your details

Can someone else operate your account

16.1 - if you want or need someone to operate your account, you must generally either sign a form we give you or sign a power of attorney, signed by you, which authorises them to use the account.

To point 2.2 and 2.3, the accuser knowingly and with permission provided me their details.

To point 16.1, the word generally surely does not cover all situations?

I’d really appreciate any help or advice you can give me. I’ve contacted a number of different solicitors who have said it isn’t their area.

Thanks for your time

[des8]

Have you lodged a written appeal with your bank, explaining exactly what happened,
You won't get this resolved over a phone, or even in branch.
It will need to be reviewed by their fraud dept and will probably take weeks, possibly months,

Your recourse against the "family friend" is probably an action for defamation, but be warned this has to be lodged in High Court, is expensive and even if you win will he be able to meet your costs?

[Swino19]

Thanks for your response and your help.

I’ve submitted my complaint against the marker with the bank. Im waiting to hear back exactly what the accusation is.

Do you think I have a case to have this overturned? I’ve tried scouring the internet but can’t find any info on it. I did open the bank account up for him however it was with full permission and he sent me his details. The guy in branch I spoke to said it happens all the time in situations such as;

a) people that can’t speak english, so their friends open an account
b) people opening accounts up for elderly family members

the difference being they don’t tend to have the person the account was opened for accuse them of fraud. However surely it should work in my favour I have documented proof of him sending the information to me?

[des8]

On the basis of what you have said, and with documentary evidence to back it, the bank should reverse their decision and remove the marker.
However the banks are extremely jittery about fraud, and it is not possible to second guess what their decision will be.

I'm afraid I doubt there is little you can do until you receive their final decision

[Swino19]

Thank you again for your help, I really appreciate it.

If anyone at all has any advice or guidance they could provide I’d be extremely grateful.

Thanks again

[Swino19]

I received a final response from the bank over the phone and they're not prepared to remove the marker as 'they have followed all the guidelines'. I will have to try take this to the ombudsman and try to get it overturned.

Does anyone have any experience of CIFAS markers through the ombudsman?

Thanks

[des8]

If you plough through the attached (https://www.financial-ombudsman.org....6/issue139.pdf) you'll find some examples of FO & CIFAS markers.

You have nothing to lose by lodging a complaint with FO

[Swino19]

Update

I submitted my complaint to CIFAS who stated that they rejected my complaint.

Further information that I’ve found;

‘The bank have stated that I opened an account in another individuals name without their permission’

CIFAS state that they only look at whether the business has enough information to make a filing. Clearly not that I have significant proof that not only did I have the persons permission, but that they asked me to open the account.

The conversation that I have documented proof of is;

Me – Let me know when you’re doing it, if you need any help

Accuser – Will do mate, tired it other week but page just kept refreshing because of the internet

Me – If you’re having problems Ill open one for you, let me know

Accuser – Thanks, will do

Accuser – Ill box it off soon as I’m home. Be sorted later today

The accuser then sends through screen shots of his application form (that he was unable to submit due to an issue) with fully completed details.

Accuser – Details there mate

The accuser stays online whilst I complete the application form based on the application form he sent through to me. I tell him its completed and everything will go to his address. He thanks me for doing it and tells me he’ll be in touch.

This is all fully documented with conversations saved. I’ve taken my complaint now to the financial ombudsman and am now waiting for a response from them.

Based on the above does anyone have an opinion on how successful I will be?

Its listed under a CAT3 marker, but anything I try to research doesn’t apply to this.

[des8]

How will FOS react?
No one knows. Sometimes you think they are as much use as a chocolate fireguard, other times they surprise you!

I'm afraid you'll just have to wait and see

[Swino19]

Just for info, following an investigation by FOS. My complaint was upheld;

*- It is clear from this that Mr XXX instructed Mr XXX to open the account for him, and that he was fully complicit in the situation
*- On balance, in light of all of the above, I believe this account was set up with Mr XXX
knowledge and authority.


conclusion
For the reasons explained, I don’t believe Halifax have acted fairly and reasonably in this matter. I recommend the complaint be upheld. In settlement of the complaint, I recommend that Halifax do the following:
 Remove the CIFAS marker in Mr XXX name;
 Pay Mr XX the sum of £250 compensation for the trouble and upset caused.


They have until the 30th Jan to appeal the decision from their side. Should they not, i could not be happier with the outcome!

*