Upheld: Authorised Push Payment (APP) scam - failure to reimburse under CRM Code complaint against Bank of Scotland plc trading as Halifax
Financial Ombudsman decision DRN-6124142 of 2026-05-29T00:00:00+00:00. Authorised Push Payment (APP) scam - failure to reimburse under CRM Code complaint against Bank of Scotland plc trading as Halifax. Outcome: Upheld.
Decision detail
| Reference | DRN-6124142 |
|---|---|
| Decision date | 2026-05-29T00:00:00+00:00 |
| Firm | Bank of Scotland plc trading as Halifax |
| Product | current account |
| Claim type | Authorised Push Payment (APP) scam - failure to reimburse under CRM Code |
| Outcome | Upheld |
| Remedy | Refund of £301,770.32 (outstanding loss) plus 8% simple interest per year calculated from the date Halifax declined the CRM Code claim to the date of settlement. Halifax is entitled to take assignment of rights to future distributions from the administration process to prevent double recovery. |
Summary
Mrs L invested £374,874.32 with company G between October 2021 and September 2024, believing it was a legitimate investment in air conditioning units for a hotel chain contract. G misled investors about insurance protection, inflated contract revenues, and misused funds for personal loans and unrelated activities. When G went into administration, Mrs L suffered a loss of £301,770.32. Halifax declined her fraud claim, but the ombudsman upheld her complaint, finding she was the victim of an APP scam under the CRM Code and ordering Halifax to refund the outstanding loss plus interest.
The Ombudsman's reasoning
The ombudsman determined that Mrs L's payments met the definition of an APP scam under the CRM Code because G obtained the funds by dishonest deception, with the funds not being used for the intended investment purpose. The evidence showed G systematically misled investors about insurance protection, contract revenues, and the use of funds. Halifax could not rely on exceptions to reimbursement as they had no evidence of effective warnings and Mrs L had a reasonable basis for belief given the information presented to her by G. The ombudsman proceeded to determine the complaint despite ongoing police investigations, applying the balance of probabilities standard rather than waiting for criminal proceedings requiring a higher standard of proof.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Bank of Scotland plc trading as Halifax, all decisions | 117 | 8% |
Source
Read the original decision on the Financial Ombudsman Service website