Not upheld: Fraud reimbursement (APP scams) complaint against Zempler Bank Limited

Decision detail

Summary

Mr I sent £11,500 to a recipient account held with Zempler Bank in August 2023 for household appliances that were never received. He later complained to Zempler Bank alleging authorised push payment (APP) fraud and requested a refund. Zempler Bank rejected the complaint, and Mr I referred the matter to the Financial Ombudsman Service. The ombudsman found no failing by Zempler Bank in account opening procedures, ongoing account monitoring, or response to the fraud notification that could be linked to Mr I's loss. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that even if APP fraud had occurred, Zempler Bank did not fail to do something reasonably expected of it that would have materially prevented the loss. Account opening procedures were compliant with regulatory standards. Account monitoring showed no basis to refuse instructions without a fraud report, as there was no beneficiary name mismatch and the explanation provided aligned with what the account holder would have given. The delayed fraud notification (over one year later) meant no funds remained for recovery. The ombudsman rejected the argument that lack of physical branches hindered reporting, as alternative reporting channels were available.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website