Not upheld: Cifas fraud marker registration; misuse of facility complaint against TSB Bank Plc

Decision detail

Summary

Mr A complained that TSB Bank Plc unfairly registered a Cifas fraud marker against his account after he received a £424.08 payment that was reported as fraudulent. Mr A claimed the funds were from a friend to help clear his overdraft but then spent the money on gambling. When TSB questioned him, Mr A could not immediately provide his friend's name, and when he did, it did not match the account sender. The ombudsman found that TSB had reasonable grounds to believe fraud had occurred and that the evidence was clear, relevant and rigorous, meeting the legal requirements for registering a 'misuse of facility' marker. The complaint was not upheld and no remedy was ordered.

The Ombudsman's reasoning

The ombudsman found that TSB had reasonable grounds to believe fraud had been committed as the payment was reported as fraudulent. The evidence was clear, relevant and rigorous because: Mr A could not immediately provide the name of his friend despite claiming recent contact; the name provided did not match the account sender; Mr A could not explain why he spent funds intended for overdraft clearance on gambling; and Mr A's testimony did not corroborate with the account activity. The ombudsman rejected Mr A's argument that TSB failed procedurally by not requesting evidence at the time, noting that Mr A himself acknowledged missing the opportunity to provide documentation.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website