Not upheld: scam reimbursement / Authorised Push Payment (APP) scam claim complaint against Monzo Bank Limited

Decision detail

Summary

Mr G purchased a car through an online marketplace, paying £5,500 by bank transfer after part-exchanging his own vehicle. After taking ownership, he discovered issues with the car's condition and claimed he had been scammed. Monzo declined to reimburse him, treating the matter as a civil dispute. The ombudsman upheld Monzo's decision, finding that the transaction does not constitute an APP scam under the Reimbursement Rules because the seller was the intended recipient, the payment was for the intended purpose, and Mr G received the car he purchased. The dispute concerns product quality, which falls within private civil disputes excluded from APP scam coverage.

The Ombudsman's reasoning

The ombudsman determined that the transaction does not constitute an APP scam under the Reimbursement Rules because: (1) the seller was the intended recipient and received the funds; (2) the payment was for the intended purpose of purchasing a specific car, which Mr G received; and (3) the dispute concerns the quality and condition of goods received, which is specifically excluded from APP scam coverage and falls within the definition of a private civil dispute. The ombudsman noted that concerns about misrepresentation of the car's condition are matters for civil law and consumer rights protections, not APP scam reimbursement.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website