Not upheld: Fraud reimbursement (APP scams) complaint against TSB Bank plc

Decision detail

Summary

Mr F transferred over £13,000 to an individual (Mr S) for purported immigration legal services between December 2023 and April 2024. When services were not delivered and Mr S ceased communication, Mr F reported the matter as a scam to TSB. TSB initially reimbursed £6,000 under its Fraud Refund Guarantee but later declined a second claim for additional payments and reversed the initial refund, characterising the matter as a civil dispute. The Ombudsman did not uphold Mr F's complaint, finding insufficient evidence of fraud or intent to deceive by Mr S, placing the burden of proof on Mr F rather than TSB to disprove the scam allegation. The Ombudsman noted that TSB's offer to reconsider if police confirmed fraud was fair in the circumstances.

The Ombudsman's reasoning

The Ombudsman found that while Mr F's recollection was corroborated by witnesses, he failed to provide sufficient evidence demonstrating that Mr S acted with intent to deceive. Failure to deliver a service does not automatically constitute fraud. The burden of proof rests with Mr F to demonstrate fraud occurred, not with TSB to disprove it. The ambiguities in the evidence (payment references, lack of documentary agreement, unclear recovery attempts) meant a safe conclusion could not be reached about what was agreed or why services were not delivered. Since fraud was not sufficiently evidenced, TSB did not act unreasonably in refusing reimbursement under its Fraud Refund Guarantee.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website