Not upheld: APP scam reimbursement claim and account closure complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr A complained that Barclays should reimburse £150 in payments he made to two individuals (B and D) for companionship services that were not provided, claiming he was the victim of a scam. Mr A also complained about poor customer service and the closure of his account. Barclays declined to reimburse, citing a civil dispute with B and gross negligence regarding D. The ombudsman found that the payments did not meet the definition of an APP scam under the Faster Payments Scheme Reimbursement Rules because there was insufficient evidence of criminal deception and the full context of what was agreed between the parties could not be established. The ombudsman also upheld Barclays' right to close the account in line with its terms and conditions and regulatory obligations. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman concluded that the payments did not meet the definition of an APP scam under the Faster Payments Scheme Reimbursement Rules because: (1) the recipients were who Mr A intended to pay; (2) there was insufficient evidence that B or D criminally deceived Mr A or that the purpose of the payments differed from what was intended; (3) the available message snippets did not show what services were offered, what price was agreed, or what expectations existed; (4) the screenshot from B did not constitute a confession of fraud; and (5) the payments were not unusual or out of character for Mr A's account activity. The ombudsman also found that Barclays was entitled to close the account in line with its terms and conditions and regulatory obligations, and that the account closure was not unlawful or unfair.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website