Not upheld: scam claim and refund request - APP fraud determination complaint against TSB Bank plc

Decision detail

Summary

Mr W purchased a cockapoo puppy online for £570 based on the seller's claims that it was vaccinated and microchipped. After veterinary examination revealed the vaccination card was fake and the puppy was not microchipped, Mr W incurred additional costs of over £150 for proper vaccinations and microchipping. When the seller became uncontactable, Mr W requested a refund from TSB, claiming he was a victim of a scam. TSB declined, characterizing the matter as a civil dispute. The ombudsman upheld TSB's decision, finding that although the seller likely misled Mr W about the puppy's condition, Mr W received the goods he intended to purchase, making this a private civil dispute over product quality rather than an APP scam under regulatory definitions.

The Ombudsman's reasoning

The ombudsman applied the FPS rules definition of APP scam, which requires that a consumer be deceived about the purpose of the payment itself. Although the seller likely misled Mr W about the puppy's vaccination and microchip status, Mr W received the goods he intended to purchase (a cockapoo puppy), meaning the purpose of the payment was fulfilled. Misrepresentation about the condition or attributes of goods constitutes a civil dispute over the quality of goods sold, not an APP scam. The Payment Systems Regulator's guidance explicitly excludes such disputes from APP fraud coverage, as consumer rights are protected under the Consumer Rights Act through civil remedies.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website