Not upheld: APP scam reimbursement claim / Reimbursement Rules application complaint against Nationwide Building Society

Decision detail

Summary

Mr B paid £800 to M for carpet fitting work that was never completed and sought reimbursement from Nationwide under the Reimbursement Rules as an APP scam victim. Nationwide declined reimbursement, concluding the situation was a private civil dispute rather than an APP scam, and offered £175 compensation for misleading advice. The ombudsman upheld Nationwide's decision, finding that although M demonstrated poor business practices and failed to complete the work, the evidence did not support a finding of criminal deception or fraudulent intent at the time of payment. The ombudsman noted that M had completed some LVT flooring work, used a traceable personal account, and engaged with court proceedings, all inconsistent with fraudulent behavior. The complaint was not upheld and the £175 compensation was deemed fair.

The Ombudsman's reasoning

The ombudsman applied the Reimbursement Rules definition of APP scam, which requires criminal deception where the recipient is not who the consumer intended to pay or the payment is not for the intended purpose. The ombudsman found that Mr B paid the intended recipient (M) and that while M failed to complete the carpet work, this does not constitute criminal deception with intent to scam. The evidence showed M had ordered and started the LVT flooring work, used his personal traceable account, engaged with the CCJ, and the account showed legitimate flooring work for other customers. The ombudsman concluded this was a private civil dispute over poor workmanship and non-completion, not a fraud.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website