UK Treasury Payment Scam Redress

On May 10, UK Treasury issued statement on scam reimbursement.

  • UK Treasury published a statement setting out how UK GVT and UK PSR intend to improve the reimbursement of all the authorized push payment (APP) scam victims.
  • Follows UK PSR Nov. 2021 published consultation preventing APP scams, see #121713.
  • Statement
  • UK GVT understands there is a voluntary contingent reimbursement model (CRM) code in place already, but the reimbursement to victims of APP scams remains inconsistent.
  • UK GVT intends to legislate in Financial Services and Markets Bill to enable regulatory action by UK PSR to require banks and other service providers to reimburse all losses.
  • This will ensure that victims are not left paying for fraud through no fault of their own.
  • UK GVT will also place a duty on UK PSR which will require it to take regulatory action within a prescribed timescale, and that this duty will then include two main elements.
  • The duty will first require that UK PSR publishes for consultation, a draft regulatory requirement, to be issued within 2 months of these provisions due to come into force.
  • Also, to impose regulatory requirement within 6 months of rules coming into force.
  • Next Steps
  • UK PSR has confirmed that it now intends to publish a consultation, on its preferred approach to APP scam reimbursement process, sometime during the autumn of 2022.

Regulators UK GVT; UK PSR; UK Treasury
Entity Types Bank; BS; CNSM; CU; MSB
Reference PS, PR, 5/10/2022
Functions Advertising; Complaints; Compliance; C-Suite; Financial; Fraud; Legal; Operations; Privacy; Reporting; Risk; Settlement; Technology; Treasury
Countries United Kingdom
Products Banking; Cards; Clearing; Deposits; Payments
Regions EMEA
Rule Type Proposed
Rule Date 5/10/2022
Effective Date 5/10/2022
Rule Id 137427
Linked to Rule :121713
Reg. Last Update 5/10/2022
Report Section UK

Last substantive update on 05/11/2022