Not upheld: scam reimbursement / extortion claim complaint against Nationwide Building Society

Decision detail

Summary

Mr H complained that Nationwide Building Society unfairly refused to refund £800 he paid following threatening calls and messages demanding money under threat of violence. Mr H argued the payment resulted from an APP scam covered by mandatory reimbursement rules introduced in October 2024, claiming the threats constituted a recognized form of scam and that the incident was part of a mass text campaign using compromised data. The ombudsman rejected this argument, finding the incident constituted criminal extortion rather than a scam, as the perpetrator obtained money through threats of violence rather than deception. The ombudsman noted inconsistencies in Mr H's account of events and found insufficient evidence that this was a typical APP scam scenario. Nationwide's refusal to reimburse was therefore upheld as fair and reasonable.

The Ombudsman's reasoning

The ombudsman distinguished between a scam (which involves deception where a person believes they are paying a genuine recipient) and extortion (where money is obtained through threats of violence). The evidence, particularly Mr H's initial description of the incident as extortion and inconsistencies in his account regarding police contact timing, supported the conclusion that this was extortion rather than an APP scam. While the police report indicated the messages could be part of a mass incident, there was insufficient evidence that Mr H's specific number was on a compromised list or that this constituted a typical APP scam scenario covered by the reimbursement rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website