Not upheld: APP scam reimbursement claim / application of claim excess complaint against The Royal Bank of Scotland Plc (RBS)

Decision detail

Summary

Mr F paid £78 to a seller for collectable coins via faster payment but never received the coins or a refund. RBS initially treated it as a civil dispute rather than an APP scam. The ombudsman concluded Mr F was likely the victim of an APP scam covered by the Faster Payment Scheme Reimbursement Rules. However, RBS is entitled to apply a claim excess of up to £100, meaning no reimbursement is due since the payment amount is less than the excess. Although RBS failed to contact the beneficiary bank, this would not have enabled fund recovery as the money had already been withdrawn.

The Ombudsman's reasoning

Although Mr F was likely the victim of an APP scam covered by the Reimbursement Rules, the payment amount of £78 is less than the £100 claim excess that RBS is entitled to deduct under the rules. Therefore, no reimbursement is due. Additionally, even though RBS failed to contact the beneficiary bank when it should have, this would not have resulted in fund recovery as the funds had already been withdrawn before Mr F reported the matter.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website