Not upheld: Authorised Push Payment (APP) scam - reimbursement claim under FPS Reimbursement Rules complaint against Starling Bank Limited

Decision detail

Summary

Miss G and Mr S complained that Starling Bank Limited should refund £50 lost in an APP scam. Mr S attempted to purchase an item online but was later told he needed a prescription and asked to pay a £500 cancellation fee, which he refused. The ombudsman confirmed this was indeed an APP scam and that Starling was wrong to initially classify it as a civil dispute. However, the complaint was not upheld because the £50 payment fell within Starling's applied excess under the FPS Reimbursement Rules, and Mr S's personal vulnerabilities did not materially affect his ability to protect himself from this particular scam, as he was able to engage effectively with the scammer and ultimately identify and report the fraud quickly.

The Ombudsman's reasoning

Although the ombudsman confirmed Mr S was victim of an APP scam and that Starling was wrong to classify it as a civil dispute, the complaint was not upheld because: (1) the payment amount of £50 fell within Starling's £50 excess under the FPS Reimbursement Rules; (2) while Mr S met some characteristics of vulnerability, his vulnerability did not materially affect his ability to protect himself from this particular scam, as he was able to identify warning signs and report the matter quickly; and (3) Starling had no duty to prevent the payment based on its nature and value within the customer's spending patterns.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website