Not upheld: fraud claim - scam payment complaint against Lloyds Bank PLC

Decision detail

Summary

Company A, represented by its director Mrs K, complained that Lloyds Bank PLC failed to reimburse £9,675 lost to a scam involving fraudulent work permit documents for Mrs K's niece. Mrs K had paid company Z from company A's account but later confirmed the payment was for her personal benefit and the funds were to be treated as income owed to her by the company. The ombudsman found that company A had not suffered a loss as the money belonged to Mrs K personally, not the company, and therefore could not direct Lloyds to reimburse the company. The complaint was not upheld.

The Ombudsman's reasoning

Although the payments were made from company A's account, Mrs K confirmed they were for her personal benefit and the funds belonged to her, not the company. Therefore, company A has not suffered a loss from the fraud; Mrs K has. The ombudsman cannot direct Lloyds to reimburse a loss that the company has not suffered. Additionally, Mrs K cannot bring a personal complaint to the FOS as she is a separate legal entity from the company.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website