Individuals are turning to the ombudsman for help after being wrongly flagged as money launderers and shut out of their bank accounts, our investigation has found.
But having your account closed is just the start. We've found how an effective bank blacklist can leave you unable to get a bank account, mortgage or even a mobile phone contract for up to six years.
The bank accounts run by fraudsters
Find out more:Account shutdown
Blacklisted?
In most cases, Cifas markers are applied correctly and prevent scammers simply resuming their antics with a new provider.
But if you’re among the small number where they are unjustly applied, the results can be catastrophic, leaving you unable to get new bank accounts, mortgages or even phone contracts for the six-year life of the marker (unless it’s challenged).
Perhaps the most extraordinary aspect of Cifas markers is that your provider doesn’t have to tell you if it’s recording one. This means you may only discover its existence after having applications to other firms declined. And this in itself can dent your credit score.
Cifas is able to behave in this way because it’s a membership body for the financial industry. It has no statutory footing and little oversight beyond the FOS, which mainly scrutinises individual decisions.
The numbers are shocking:
70,000375,0001,155
Racial Profiling
Banks and Cifas respond
What to do if your account is closed
Make alternative arrangements:Complain: Look for Cifas markers:Challenge markers:Be careful with applications:Speak to providers:undefinedsource https://www.which.co.uk/news/article/locked-out-how-your-bank-could-shut-down-your-financial-life-aKeMd1g3G2XH