Not upheld: Unfair registration of Cifas fraud marker for misuse of facility complaint against National Westminster Bank Public Limited Company trading as Mettle

Decision detail

Summary

Mr M complained that Mettle unfairly registered a Cifas fraud marker against him after he received three fraudulent payments totalling £2,000 from a client (B) between November 2024 and January 2025. When Mettle contacted him in April 2025 requesting explanation and evidence, Mr M did not respond, later claiming he was dealing with harassment from an ex-business partner. Mr M subsequently provided two invoices claiming the payments were for legitimate marketing services, but the invoices did not match the payment amounts or align with his business type. The ombudsman found Mettle had reasonable grounds to register the marker based on confirmed fraudulent funds entering the account and Mr M's failure to respond to requests for explanation, combined with credibility concerns about the invoices provided.

The Ombudsman's reasoning

The ombudsman applied the Cifas standard requiring reasonable grounds to believe fraud occurred and clear, relevant, rigorous evidence of deliberate complicity. The ombudsman found that Mettle had established fraudulent funds entered the account and that Mr M's failure to respond to multiple requests for explanation, combined with invoices that did not align with his business type or match payment amounts, suggested deliberate involvement rather than innocent receipt. The ombudsman found Mr M's explanation about harassment credible as a reason for non-response but not credible as a complete explanation for the transaction discrepancies, particularly given he did not proactively provide information when first contacted despite the serious implications.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website