Not upheld: CIFAS marker recording / alleged misuse of facility complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr O complained that HSBC unfairly recorded a CIFAS marker against his account following a review of suspicious activity in April 2024. Mr O claimed a third-party had used his account to receive and transfer funds without his knowledge or involvement. The ombudsman found HSBC's decision was fair because the bank had sufficient evidence meeting CIFAS requirements, Mr O's explanation was implausible (particularly as funds were transferred to accounts in his own name), and he failed to corroborate his version of events or respond to HSBC's review inquiry. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that HSBC met the evidential threshold required by CIFAS to record a misuse of facility marker. Mr O's claim that a third-party carried out the transactions without his knowledge was not plausible, particularly given that over half the funds were transferred to another account in Mr O's own name. Mr O failed to provide corroboration for his version of events, could not explain how a third-party compromised his account, and did not respond to HSBC's review inquiry, all of which supported HSBC's decision to record the marker.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website