Not upheld: Authorised Push Payment (APP) scam reimbursement claim complaint against TSB Bank plc

Decision detail

Summary

Mr P complained that TSB refused to reimburse him for £8,000 (£820 deposit plus £7,180 balance) he paid for a car that was never delivered, claiming he was a victim of an APP scam. TSB argued this was a private civil dispute not covered by the PSR Reimbursement Rules. The ombudsman found insufficient evidence that Mr P fell victim to an APP scam as defined in the Reimbursement Rules. Based on the timing of the final payment (16:05 on 15 December, shortly after the seller's estimated 3:55 arrival time), the lack of messages expressing delivery concerns on the expected date, and Mr P's failure to immediately contact the seller, the ombudsman concluded on the balance of probabilities that the car was likely delivered and any subsequent dispute was a private civil matter. The complaint was not upheld, and TSB was not required to reimburse Mr P.

The Ombudsman's reasoning

The ombudsman applied the PSR Reimbursement Rules definition of an APP scam, which requires that the recipient is not who the consumer intended to pay, or the payment is not for the purpose intended. The ombudsman found that Mr P paid the party he intended to pay and that the crux of the matter was whether Mr P received the car. On the balance of probabilities, the ombudsman concluded it was more likely the car was delivered based on: (1) the timing of the final payment at 16:05, shortly after the seller's estimated 3:55 arrival time, which would be illogical if the car hadn't arrived; (2) the lack of any messages on the delivery date expressing concern about non-delivery; (3) Mr P's failure to contact the seller immediately if the car didn't arrive, despite having exchanged messages for three days and paid a significant sum; (4) Mr P's prior scam education; and (5) Mr P blocking the seller rather than the seller blocking Mr P. The ombudsman treated this as a private civil dispute rather than an APP scam, which falls outside the Reimbursement Rules.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website