Not upheld: Authorised Push Payment (APP) scam claim / refund denial complaint against TSB Bank Plc

Decision detail

Summary

Mrs A paid a contractor M £5,300 for boundary wall construction work after an initial £3,700 deposit. When M failed to complete the work as promised, Mrs A claimed she was victim of a scam and requested TSB refund the £5,300. TSB declined, classifying it as a civil dispute. The ombudsman upheld TSB's decision, finding that although M failed to deliver the services, the evidence showed M was an established legitimate business with positive reviews and no indicators of fraudulent intent, making this a civil matter rather than an APP scam covered by reimbursement rules.

The Ombudsman's reasoning

The ombudsman applied the APP scam definition under FPS and CHAPS reimbursement rules, which requires criminal deception. Mrs A paid the intended recipient (M) for the intended purpose (construction work). While M failed to complete the work, the evidence showed M was an established legitimate business with positive reviews, no concerns from its bank provider, and attempts to contact Mrs A about the work. The failure to complete work, while disappointing, does not constitute criminal fraud or dishonesty. The situation was a civil dispute between Mrs A and M rather than an APP scam, and therefore fell outside the scope of TSB's reimbursement obligations.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website