Not upheld: Fraud reimbursement (APP scams) complaint against Admiral Financial Services Limited

Decision detail

Summary

Mr R complained that Admiral Financial Services Limited was pursuing him for a £10,000 loan he claimed he did not apply for, alleging that an old friend had fraudulently accessed his device to apply for it. Admiral maintained it had completed necessary checks and paid the funds into Mr R's bank account. The ombudsman found that despite the use of different contact details on the application, Mr R's subsequent conduct—including regular online banking payments, transfers of half the loan funds to a third party, use of funds to pay his credit card, and ability to report his card missing—demonstrated he was aware of the loan. The ombudsman concluded that Mr R was aware of the application and Admiral could reasonably hold him liable for the debt, and therefore did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that despite the different contact details used, Mr R's subsequent conduct demonstrated awareness of the loan. The regular online banking payments, continued transfers to a third party, use of funds to pay off his credit card, and ability to report his card missing all indicated Mr R had capacity to report the loan as fraudulent at the time but chose not to. The ombudsman was not persuaded by Mr R's testimony that he was unaware of the application, particularly given his own admission of a prior conversation with his friend about obtaining money.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website