Not upheld: scam reimbursement claim - authorised push payment (APP) scam complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr and Mrs M complained that Barclays refused to reimburse them for payments made to a builder who subsequently failed to complete work to an acceptable standard. Mrs M initially raised a fraud claim for the £10,000 payment but cancelled it after the builder returned and completed work, stating she was satisfied. When issues with workmanship emerged later, Barclays declined to reopen the claim. The ombudsman found the complaint was not upheld because the situation constituted a civil dispute over service quality rather than an authorised push payment scam under the CRM Code, as both parties had the same purpose in mind at the time of payment and substantial work was completed.

The Ombudsman's reasoning

The ombudsman determined that whilst the payments were authorised, the CRM Code definition of an APP scam was not met. The builder and Mr and Mrs M had the same purpose in mind at the time of payment (completion of building works), and much of the work was completed. The subsequent issues with workmanship and incomplete items constitute a civil dispute between customer and supplier, which is explicitly excluded from CRM Code protection. Barclays acted reasonably in allowing Mrs M to withdraw her scam claim after she confirmed the work had been completed to her satisfaction, and there was nothing more the bank should have done.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website