Not upheld: Fraud reimbursement (APP scams) complaint against Royal Bank of Scotland Public Limited Company (RBS)

Decision detail

Summary

Ms E paid £5,000 to Company C for an alleged IT job placement and UK visa sponsorship arrangement. After Company C failed to secure a suitable role and Ms E became concerned about legitimacy, she requested a refund. RBS declined to reimburse her, and Ms E complained to the FOS. The ombudsman found that although Ms E authorised the payment and Company C failed to deliver services, the circumstances did not meet the definition of an Authorised Push Payment (APP) scam under the Faster Payments reimbursement rules. The ombudsman concluded the evidence did not establish fraudulent intent at the outset, noting Company C's legitimate business status and ongoing engagement. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the civil standard of proof to determine whether the circumstances constituted an APP scam as defined in the Faster Payments reimbursement rules. An APP scam requires evidence of fraudulent or dishonest conduct with intent to deceive. The ombudsman found insufficient evidence to establish on the balance of probabilities that Company C acted with dishonest intent at the outset. Company C's registration at Companies House, active status, government authorisation, evidence of past successful sponsorships, and ongoing engagement with Ms E (including partial refund payments) all made it difficult to conclude fraud occurred. The ombudsman distinguished this from a private civil dispute, which falls outside the reimbursement rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website