Not upheld: authorised push payment (APP) scam - refund claim complaint against Starling Bank Limited

Decision detail

Summary

Mr T complained to Starling Bank after losing £5,221 to individuals who offered spiritual healing services between November 2025 and January 2026. He claimed he was targeted due to vulnerability and manipulated for financial gain. Starling and the FOS investigator did not uphold the complaint. The ombudsman decided not to uphold the complaint because the payments did not meet the definition of an APP scam under the Faster Payments Reimbursement Rules, as the evidence could not prove the recipients intended to defraud Mr T without providing any service, and the case fell into the category of a private civil dispute rather than criminal fraud.

The Ombudsman's reasoning

The ombudsman applied the Faster Payments Reimbursement Rules and found that the payments did not constitute an APP scam as defined in the Rules. The key issue was that Mr T intended to pay the individuals and knew the purpose of the payments (spiritual healing and prayers). While the individuals may have been dishonest, the evidence was insufficient to prove they intended to defraud Mr T without providing any service. The payments fell into the category of a private civil dispute rather than criminal fraud, as the individuals may have genuinely believed in the spiritual services they were providing. Therefore, Starling had no obligation to reimburse under the Rules or on fairness grounds.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website