Not upheld: Fraud reimbursement (APP scams) complaint against Lloyds Bank PLC

Decision detail

Summary

Mrs T complained that Lloyds Bank PLC refused to refund £302.49 she lost to a car purchase scam. She had sent the money via a money transfer service rather than directly to the seller. The ombudsman found that this payment method broke the debtor-creditor-supplier agreement required for Section 75 Consumer Credit Act claims, and that the payment was consistent with Mrs T's usual spending patterns, so Lloyds was not obligated to stop it. The ombudsman concluded Lloyds acted fairly and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that because Mrs T used a money transfer service to send funds, the debtor-creditor-supplier agreement was broken, preventing a valid Section 75 claim. The money transfer service confirmed no breach occurred on its part. Additionally, the payment was not sufficiently suspicious given Mrs T's usual spending patterns, so Lloyds was not obligated to intervene. Credit card payments are not covered under PSR automatic refund rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website