Not upheld: Authorised Push Payment (APP) Scam - Reimbursement Claim complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mr M engaged Company I to refurbish a garage and paid £2,500 for bifold doors and £950 for asbestos removal. Despite these payments, minimal progress was made and the director became unresponsive. Mr M reported the matter to NatWest as a potential scam, but NatWest classified it as a private civil dispute and refused reimbursement. The ombudsman upheld NatWest's decision, finding that although Company I's performance was inadequate and some work was incomplete, the evidence did not demonstrate fraudulent intent sufficient to meet the definition of an APP scam under the Faster Payments Scheme reimbursement rules. The ombudsman concluded it was more likely a case of poor management than deliberate fraud.

The Ombudsman's reasoning

The ombudsman applied the civil standard of proof (balance of probabilities) to determine whether an APP scam occurred. While some work was commenced and a portion of the roof was removed, this supported the conclusion that the matter was a private civil dispute regarding poor workmanship rather than fraud. The ombudsman found that although Company I's performance was inadequate and the hazardous waste certificate contained errors, the evidence did not demonstrate that Company I set out with dishonest intention to defraud Mr M from the outset. The possibility that Company I was poorly managed and failed to deliver was more likely than the alternative that it was a deliberate scam.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website