Not upheld: fraud reimbursement claim - APP scam vs private civil dispute complaint against Lloyds Bank PLC

Decision detail

Summary

Miss G purchased a vehicle online for £2,150 after viewing it, but subsequently discovered faults and requested a refund from the seller, who refused. Miss G reported the matter to Lloyds as fraud and requested reimbursement, but Lloyds rejected the claim after investigating. The ombudsman upheld Lloyds' decision, finding that the circumstances constituted a private civil dispute rather than an authorised push payment (APP) scam under the Reimbursement Rules. Although the seller displayed unprofessional behaviour and refused to honour a promised warranty, there was no substantive evidence of fraudulent misrepresentation prior to the sale, and Miss G had viewed the vehicle before purchase.

The Ombudsman's reasoning

The ombudsman applied the Reimbursement Rules which came into force on 7 October 2024, requiring firms to reimburse authorised push payments where the payer was a victim of an APP scam. An APP scam requires fraudulent or dishonest conduct to manipulate, deceive or persuade a consumer into transferring funds. The ombudsman found that Miss G viewed the vehicle before purchase and bought it in the condition she had seen it. There was no substantive evidence of false representations made prior to sale. The faults and disputes arose after purchase, constituting a private civil dispute rather than an APP scam. While some seller behaviour was unprofessional and combative, this did not amount to fraudulent conduct.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website