Not upheld: fraud prevention database reporting; submission of altered documentation complaint against Charter Court Financial Services Limited trading as Precise Mortgages

Decision detail

Summary

Mr L applied for a £450,000 bridging loan and submitted a tax year overview document to evidence he had cleared an outstanding tax liability. The document was altered and Precise identified it as false. When Precise requested further evidence of tax payment, the application was withdrawn. Precise reported Mr L to Cifas fraud prevention database. Mr L complained that this was unfair, claiming the alteration was illustrative only and accidentally submitted. The ombudsman rejected this complaint, finding Precise had clear evidence of false documentation being submitted and that Mr L's explanation was unconvincing. The marker should remain on the database as the standard for reporting continues to be met.

The Ombudsman's reasoning

The ombudsman found that Precise had clear, relevant and rigorous evidence to support a reasonable suspicion of fraud. An altered document was submitted in response to a specific request for evidence of tax payment. When Precise asked for additional evidence (such as a bank statement), the application was withdrawn rather than evidence being provided. The fact that the document may have reflected Mr L's actual tax position is irrelevant; the document itself was false. The ombudsman found Mr L's explanation (that the alteration was illustrative only and accidentally sent) unconvincing given the circumstances, particularly that he could have simply explained the HMRC delay or provided a bank statement instead. The marker should remain as the standard for reporting continues to be met.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website