Homebuyer with Cifas marker fights mortgage fraud claim – The Crusader
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Now in a battle to clear his name, he is in a dreadful bind because of the marker registered with Cifas. The independent fraud prevention database is the one that UK organisations check and contribute to.
The service unequivocally provides essential protection, but the fraud and conduct risk marker lasts for six years and without question has a big impact on lives.
Organisations must give “clear and compelling” reasons why they have applied one, says Cifas.
Anyone who disputes theirs, then finds the lender who put it on refuses to remove it, can ultimately appeal to the Financial Ombudsman.
Lockdown has heightened awareness of the Cifas system, as some individuals and business owners, in the course of seeking Government loans, have been rejected, only learning afterwards it was because of a marker.
As well as lenders’ concerns arising from account and credit vetting, other factors such as identity theft and changed addresses can prove stumbling blocks.
Crusader has received scores of protests from people, some more understandable than others.
Samir’s predicament encapsulates many of the complications and misfortunes befalling people.
Like many others Samir, who has a clean credit history, has two jobs, one in accounting and another as a self-employed taxi driver.
He used a broker for his mortgage applications, but was not given the chance to see the form before it was sent off, nor did he think to ask. “I just trusted the expert,” he explains.
When the first application to a bank was declined, his focus was on moving on and trying another lender, not finding out exactly why he had been rejected.
In fact the information about his income that was submitted triggered concerns and the bank flagged those.
This though was just a flag and did not scupper his chance with another lender. It did though go on his record.
The second application by the broker, to Santander, mistakenly only included one of his jobs.
A correction was submitted and accepted.
Separately however the tax information submitted by Samir’s accountant failed to include his student loan.
An amendment sent subsequently was accepted by HMRC and Samir settled that bill.
However Santander was also doing its checks with HMRC around the time of the amendment being submitted and changed.
That may have contributed to the Inland Revenue saying it could not verify Samir’s information.
That led to the Cifas marker being applied which Samir found out about when a third lender rejected him.
Santander said: “In this instance, the applicant’s declared second income was not confirmed by HMRC. Based on this and other existing industry markers against the customer’s profile, we were unwilling to proceed with his mortgage application. The subsequent marker placed by Santander was done so in accordance with industry practice.”
Bad timing, mitigating circumstances – however Samir’s case is viewed, the slips by professionals who benefitted from his custom have not helped.
Piecing together the events has been difficult.
Thanking Crusader for its help trying to clarify matters, Samir said: “The unintentional discrepancies on my record do not equate to having something as serious as a Cifas marker pinned on them, a six-year sentence.
“This is not fair and I will do all I can to prove I am honest. When the shock of this first hit me I did not know where to turn. Help reviewing all the factors means I feel more able now to go to the Ombudsman.”
Looking to borrow? Tread carefully
- However unintentional discrepancies in your application, far better to avoid them appearing in the first place.
- Go over everything with a fine tooth comb – prevention is always better than cure.
- Getting a mortgage is about satisfying overall affordability criteria as well as showing you can meet monthly repayments
- Check any mortgage application submitted in your name.
- Is everything correct – your personal details, any tax statements?
- Be especially careful if you have income from more than one source.
- Check any accounts submitted, are they consistent and all details correct with no contradictions?
- Before applying, stage your own verification test on your sources of income, are they all provable?
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