Not upheld: scam reimbursement / authorised push payment (APP) scam claim complaint against Starling Bank Limited

Decision detail

Summary

Mr B paid £760.11 to Company T for foreign currency exchange but cancelled the order after finding their identity verification requests excessive. Company T issued a partial refund of £715.52, which Mr B disputed, believing Company T had acted fraudulently. Mr B requested Starling Bank reimburse the difference, but Starling declined. The ombudsman found no evidence of fraud or APP scam, determining instead that this was a private civil dispute regarding contractual terms between Mr B and Company T. Accordingly, the complaint was not upheld and no reimbursement obligation arose for Starling Bank.

The Ombudsman's reasoning

The ombudsman applied the Faster Payments Scheme definition of an APP scam, which requires that a person uses fraudulent or dishonest conduct to manipulate, deceive or persuade a consumer into transferring funds where the recipient is not who the consumer intended to pay or the payment is not for the intended purpose. The ombudsman found no evidence of fraud by Company T, which appeared to be a legitimate provider requesting documentation for regulatory compliance. The ombudsman concluded this was a private civil dispute regarding contractual terms and refund calculations, not an APP scam, and therefore no reimbursement obligation arose.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website