Not upheld: scam/fraud claim - Authorised Push Payment (APP) reimbursement complaint against Barclays Bank UK PLC

Decision detail

Summary

Miss M purchased a second-hand car in October 2024 from a known tradesperson, paying £2,500 via three transfers. After experiencing problems with the car and the seller becoming unresponsive, she reported the matter to Barclays as a scam, alleging the seller had misrepresented the vehicle's condition and history. Barclays declined to refund under the FPS Reimbursement Rules. The ombudsman upheld Barclays' decision, finding that although Miss M alleged misrepresentation about the car, the payments did not meet the APP scam definition because she knew who she was paying and the payment purpose was aligned between both parties. The dispute was determined to be a private civil matter regarding product quality rather than fraud.

The Ombudsman's reasoning

The ombudsman applied the FPS Reimbursement Rules definition of an APP scam, which requires either that the recipient is not who the consumer intended to pay, or the payment is not for the purpose intended. Miss M knew who she was paying and the purpose of the payments (to purchase a car) aligned between both parties. Although Miss M alleged misrepresentation about the car's condition, this constitutes a private civil dispute about product quality rather than fraud meeting the APP scam definition. The ombudsman found insufficient evidence of the specific misrepresentations alleged and noted Miss M's prior relationship with the seller.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website