Partially upheld: scam / APP fraud claim / chargeback handling complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Ms A paid approximately £20,000 to travel agency H for 20 flight tickets to Nigeria, with most payments made via faster payment instalments between February and June 2025. Despite repeated promises, Ms A claims no tickets were issued and H subsequently refused further communication, though she did receive a partial refund of £5,006. Ms A complained to NatWest, which rejected her claim as a civil dispute. The ombudsman found that while Ms A did not receive the service paid for, the evidence did not support that H was operating a scam under the Payment Systems Regulator's APP reimbursement rules, as the payment went to the intended recipient and H's behaviour was inconsistent with typical scam operations. The complaint was partially upheld, with NatWest ordered to pay £150 compensation for delays in handling Ms A's chargeback claim, which was ultimately successful.

The Ombudsman's reasoning

The ombudsman applied the Payment Systems Regulator's Authorised Push Payment (APP) scam reimbursement rules, which exclude private civil disputes. The key question was whether this constituted an APP scam or a civil dispute. The ombudsman found that while Ms A did not receive the service paid for, the payment went to the intended recipient (H/U), and there was no evidence of deception regarding payment purpose. The ombudsman noted that the actions observed (accepting instalments, providing partial refund, continuing engagement) were inconsistent with typical scam behaviour. The successful chargeback outcome further supported the civil dispute classification. However, the ombudsman found NatWest should compensate for delays in handling the chargeback claim.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website