Not upheld: Authorised Push Payment (APP) Scam Reimbursement claim complaint against Santander UK Plc

Decision detail

Summary

Miss B lent £10,000 to K, whom she met in a club and developed a relationship with over several months, after he claimed he needed funds for stamp duty on a property purchase. After transferring the money, K became distant and eventually refused to repay the loan. Miss B subsequently discovered K was not a property developer and had lied about his circumstances. She complained to Santander seeking reimbursement under the APP Scam Reimbursement Rules, but the bank refused. The ombudsman upheld Santander's decision, finding that while K was dishonest, the evidence does not establish he took the money with criminal intent from the outset, as the messages consistently referred to it as a loan with an intention to repay, K used his real identity and was traceable, and the beneficiary bank confirmed the account holder acknowledged knowing Miss B. The ombudsman concluded this was a private civil dispute rather than an APP scam and should be resolved through civil legal proceedings.

The Ombudsman's reasoning

The ombudsman found that while K may have been dishonest about his property developer status, the evidence does not establish that he took the money with criminal intent from the outset. The messages consistently refer to the money as a loan with an intention to repay, K used his real identity and was traceable, and the beneficiary bank confirmed the account holder acknowledged knowing Miss B and the repayment arrangement. The failure to repay does not necessarily establish criminal fraud, as there could be other reasons for non-repayment. This constitutes a private civil dispute between identifiable parties rather than an APP scam, which should be resolved through civil legal channels.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website