Not upheld: scam refund claim complaint against Monzo Bank Limited

Decision detail

Summary

Miss D complained to Monzo Bank Limited claiming she was the victim of a scam and sought refunds for payments totalling £7,927.36 made to a pawnbroker, alleging she did not receive jewellery she paid for. Monzo rejected the complaint, and the ombudsman upheld that decision. The ombudsman found that the pawnbroker was a legitimate, FCA-authorised business, and evidence suggested the payments were made to repay loans against items Miss D had pledged rather than for jewellery purchases. Although the ombudsman acknowledged Miss D may have been taken advantage of in some way, there was insufficient evidence to establish that a scam had occurred or that Monzo bore responsibility for refunding the payments.

The Ombudsman's reasoning

The ombudsman concluded that while Miss D may have been coerced or taken advantage of in some way, the payments themselves were not scam payments. The payments appear to have been made to pay off loans against items Miss D had pledged with a legitimate, FCA-authorised pawnbroker. The ombudsman found insufficient evidence to establish that a scam had taken place or that Monzo bore responsibility for refunding the money. Even if a chargeback had been attempted in time, it would not have been successful given the nature of the transactions.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website