Not upheld: scam reimbursement - Authorised Push Payment (APP) scam claim complaint against NATIONAL WESTMINSTER BANK PUBLIC LIMITED COMPANY

Decision detail

Summary

Mrs M and Mr M paid a builder (Company A) to carry out work on their property but claimed they were scammed when the work was not completed and was of poor quality. They requested NatWest reimburse the payments, which NatWest declined as a civil dispute. The ombudsman examined whether the payments met the Faster Payments Scheme reimbursement rules definition of an Authorised Push Payment (APP) scam. Although Company A failed to complete the work and did poor quality work, the evidence did not demonstrate that Company A lacked the intention to carry out the work at the time the payments were made. The ombudsman concluded this was a civil contractual dispute rather than an APP scam and upheld NatWest's decision not to reimburse.

The Ombudsman's reasoning

The ombudsman applied the FPS reimbursement rules definition of an APP scam, which requires either the recipient not being who the consumer intended to pay, or the payment not being for the purpose intended. While Company A failed to complete work to satisfactory standards, the evidence does not demonstrate that Company A lacked the intention to carry out the work at the time payments were made. Misrepresentations about ability and false promises do not change Company A's stated intention. The fact that Company A was dissolved does not necessarily indicate fraudulent intent. Therefore, the payments constitute a civil dispute rather than an APP scam, and NatWest correctly released the funds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website