Not upheld: Fraud reimbursement (APP scams) complaint against HSBC UK Bank Plc

Decision detail

Summary

Mr A purchased a vehicle via digital auction marketplace and paid £17,199 plus £840 delivery via faster payments on 22 August 2025. He subsequently claimed the transaction was a scam and requested HSBC refund the payments. HSBC declined, determining it was a civil dispute rather than a scam. The ombudsman upheld HSBC's decision, finding that the payments went to the intended recipient and both parties intended the payments for vehicle purchase at the time they were made. Although the seller exhibited poor business practices including using a virtual office, insisting on bank transfer payment, and concealing terms, these did not evidence fraudulent intent or deception required for an APP scam under FPS reimbursement rules.

The Ombudsman's reasoning

The ombudsman applied the FPS reimbursement rules definition of an APP scam, which requires either that the recipient is not who the consumer intended to pay, or the payment is not for the purpose intended. The ombudsman found that the payments went to the company Mr A intended to pay and that both parties intended the payments for vehicle purchase and delivery at the time they were made. The ombudsman concluded the issues raised by Mr A evidenced poor business practices rather than fraudulent intent or deception, and that the matter constituted a civil dispute between consumer and payee rather than criminal fraud.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website