Not upheld: scam reimbursement - authorised push payment (APP) scam claim complaint against Santander UK Plc

Decision detail

Summary

Mrs C paid Company A for electrical work on her property in September and October 2024. Company A failed to complete the work and what was completed was of poor standard. Mrs C claimed this was a scam and requested reimbursement from Santander. The ombudsman considered whether the payments met the definition of an authorised push payment (APP) scam under the CRM Code and FPS reimbursement rules. Although sympathising with Mrs C's situation, the ombudsman found that the evidence did not demonstrate Company A lacked the intention to carry out the work at the time of payment, as some work was completed and a later dispute may have caused the breakdown. Therefore, the complaint was not upheld and Santander was not required to reimburse Mrs C.

The Ombudsman's reasoning

The ombudsman applied the definitions of APP scams under both the CRM Code and FPS reimbursement rules, which require a significant difference between the payment purpose intended by the consumer and the actual purpose, resulting from fraud or dishonest deception. Although Company A failed to complete the work to a satisfactory standard, the evidence does not demonstrate that Company A lacked the intention to carry out the agreed work at the time payments were made. The fact that Company A did carry out some work, combined with evidence of a later dispute that may have caused the breakdown, suggests Company A initially intended to perform the services. Misrepresentations about the scope of work or professional registration do not change the company's intention to carry out the work and therefore do not constitute an APP scam. Santander could not have identified fraud risk based on available evidence at the time of payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website