Not upheld: scam reimbursement claim complaint against Monzo Bank Limited

Decision detail

Summary

Mr O lent £1,300 to an acquaintance in September 2024 who has not repaid the money. Mr O claims he was scammed, alleging the stated purpose (property purchase) was fabricated and documents were fake. Monzo declined to refund him, characterising it as a civil matter. The Ombudsman upheld Monzo's decision, finding that while the CRM Code requires reimbursement for certain scams, it explicitly excludes private civil disputes. Without evidence that Mr O was deceived about the true nature of the payment from the outset, the transaction constituted an unpaid loan rather than a scam, and therefore fell outside the scope of the CRM Code.

The Ombudsman's reasoning

The Ombudsman found that while the CRM Code requires firms to reimburse victims of certain scams, it explicitly excludes private civil disputes. Although Mr O claims the documents were fabricated, the Ombudsman could not verify this and therefore could only conclude that Mr O lent money that was not repaid, which constitutes a civil dispute rather than a scam. The transaction was authorised by Mr O, and without evidence of deception about the true nature of the payment from the outset, the CRM Code does not apply.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website