Not upheld: APP scam reimbursement - claim excess application complaint against Bank of Scotland plc, trading as Halifax

Decision detail

Summary

Mr C complained that Halifax unfairly applied a £100 claim excess when reimbursing him for a £110 APP purchase scam, resulting in only a £10 reimbursement. Halifax relied on the Faster Payment Scheme and CHAPS Reimbursement Rules, which permit a claim excess of up to £100 for non-vulnerable consumers. The ombudsman upheld Halifax's position, finding that the Reimbursement Rules explicitly allow such deductions and that Mr C did not meet the definition of a vulnerable consumer. While acknowledging Mr C's frustration that his payment fell just above the excess threshold, the ombudsman concluded Halifax acted fairly and within its entitlements under the applicable rules.

The Ombudsman's reasoning

The Reimbursement Rules explicitly permit payment service providers to deduct a claim excess of up to £100 from APP scam reimbursements, unless the consumer is deemed vulnerable. Halifax was entitled to apply this excess as there was no evidence Mr C should have been classified as vulnerable. While the ombudsman acknowledged Mr C's frustration that his £110 payment fell just above the £100 excess threshold, the rules do not require individual fairness assessments beyond the vulnerability consideration. Halifax also acted appropriately by not conducting additional checks on the payment amount and by promptly attempting fund recovery through the beneficiary bank.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website