The UK’s Payment Systems Regulator (PSR) intends to establish a maximum reimbursement limit of £415,000 for victims of authorized push payment (APP) fraud. This measure follows the PSR’s recent final stance on addressing APP fraud, aiming to ensure that most victims receive reimbursement within five days of reporting the fraud to their bank.
Before these new regulations take effect next year, the PSR is seeking feedback on various aspects, including the maximum reimbursement level, claim excess, and the consumer standard of caution.
Regarding the latter, customers are expected to pay attention to their bank’s warnings about potential scam attempts, inform their bank within 13 months of the last fraudulent payment, and provide the necessary information for a reimbursement claim. Reimbursement might be denied if a consumer is deemed “grossly negligent” in meeting these requirements. However, this standard is set quite high and is expected to apply in only a minority of cases, particularly not in situations where a victim’s vulnerability contributes to their fraud.
The PSR is also soliciting opinions on structuring a claim excess, to be imposed on the sending bank. This could be a fixed amount similar to an insurance claim excess or a percentage of the reimbursement claim amount.
The PSR suggests aligning the maximum reimbursement limit with the existing Financial Ombudsman Service cap of £415,000 per claim, which encompasses approximately 98% of APP fraud cases. The regulator is also consulting on whether this maximum level should be extended to cover vulnerable consumers.
Stakeholders have until September 12 to provide their input on the consultation, with the new reimbursement requirement set to become effective in 2024.
By FCCT Editorial Team
, an independent military force, and allied militias in Sudan raped several dozen women and girls in West Darfur’s capital, El Geneina, and those fleeing to Chad between late April and late June 2023, Human Rights Watch said today. The assailants appear to have targeted people because of their Massalit ethnicity and, in some cases, because they were known activists.){kind=link}