Not upheld: scam loss - alleged unauthorised payment complaint against Lloyds Bank PLC

Decision detail

Summary

Mr M complained that Lloyds Bank PLC should refund £700 he paid to a money remittance service in January 2026, which he subsequently sent abroad and claimed was lost to a scam involving illicit vehicle-related services. Lloyds refused to refund the money. The ombudsman found insufficient evidence of a scam based on the limited screenshots provided and determined that even if a scam had occurred, Mr M authorised the payment and bore liability under Payment Services Regulations. The ombudsman concluded Lloyds had no obligation to intervene as the payment was not out of character for the account and went to a regulated firm in Mr M's own name. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found insufficient evidence that the money was actually lost to a scam, as the screenshots did not show substantial conversation, what was agreed, or evidence of non-provision of services or cessation of contact. Even if a scam had occurred, Mr M authorised the payment and is liable in the first instance under Payment Services Regulations. Lloyds had no obligation to intervene as the payment was not out of character, was a single payment to a regulated firm in Mr M's own name, and Lloyds had no visibility of external influence on Mr M. Recovery was not possible as funds were already sent abroad, and no chargeback reason was appropriate.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website