Not upheld: Authorised Push Payment (APP) Scam / Fraud claim rejection complaint against Metro Bank PLC

Decision detail

Summary

Mr I engaged a tradesman (M) to carry out building works for £18,000 and made two faster payments of £5,000 and £1,000 in May 2025. After works began, M failed to complete the job and Mr I lost contact with him. Mr I claimed he had fallen victim to an APP scam and requested reimbursement from Metro Bank PLC. Metro rejected the claim as a civil dispute rather than fraud. The ombudsman upheld Metro's decision, finding that the circumstances did not meet the definition of an APP scam under the Faster Payments Reimbursement Rules, as Mr I paid the intended recipient for the intended purpose, and the evidence showed a relationship breakdown rather than deliberate criminal deception.

The Ombudsman's reasoning

The ombudsman applied the Faster Payments Reimbursement Rules definition of an APP scam, which requires either that the recipient is not who the consumer intended to pay, or the payment is not for the purpose the consumer intended. The ombudsman found that Mr I paid the account details provided by M (so the recipient was as intended) and both parties' purposes matched (M to provide building services, Mr I to receive them). The ombudsman concluded the evidence showed a breakdown in the relationship between the parties regarding payment methods, work quality, and completion timelines, rather than evidence of deliberate criminal deception. The ombudsman noted that incomplete or unsatisfactory work does not constitute an APP scam under the Reimbursement Rules, which specifically exclude private civil disputes.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website