Bank Transfer Claims
Did Your Bank Do Enough To Protect You ?
On 23 September 2016 Which? made a super-complaint to the Payment Services Regulator and the Financial Conduct Authority, setting out concerns about the protection available to victims of Authorised Push Payment (APP) fraud. They said there are insufficient protections for consumers who are victims of APP fraud.
UK Finance data on APP fraud show there were 43,875 cases of APP fraud and total losses of £236 million in 2017, with an increase to £355 million in the first six months of 2021.
What Is Authorised Push Payment Fraud ?
APP is where a payer, often an individual consumer, instructs their Payment Service Provider to send money from their account to another account. These payments are typically executed by the Clearing House Automated Payment System (CHAPS) and Faster Payment Service (FPS). APP fraud is where a fraudster tricks a payer into making an APP to an account controlled by that fraudster. This is different from other kinds of fraud. For example, a fraudster steals money from an account without the account owner knowing. In APP, the account owner authorises the payment, albeit under false pretences.
1 . The Customer intended to transfer funds to another person but was instead deceived into transferring the funds to a different person.
2. The Customer transferred funds to another person for what they believed were legitimate purposes but which were, in fact, fraudulent.
In November 2017, the Payment Services Regulator highlighted a range of developing industry initiatives that should help better prevent and respond to APP fraud if used by PSPs. The Payment Services Regulator also consulted on introducing a contingent reimbursement model code developed by the industry and consumer representatives for Payment Services Providers who have sent or received funds to follow when resolving complaints about alleged APP fraud.
The voluntary Contingent Reimbursement Model (CRM) Code was introduced in May 2019, which is meant to give victims the chance of fairer and more consistent redress. However, not all banks have signed up. And even more worryingly, they are not adhering to the guidelines.
It is common knowledge within the financial industry that banks will often make claiming back your money problematic. With many consumers losing out on what is rightfully theirs.
Our company are experts in financial claims and consumer law, and beating the banks is what we do! If you have become a victim of fraud and would like to make a claim, get in touch.