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

Decision detail

Summary

Mr O paid £100 to a seller on social media for clothing items in November 2025 but did not receive the goods. He claimed this was a scam and requested a refund from Santander. Santander declined, classifying it as a private civil dispute rather than an Authorised Push Payment (APP) scam. The FOS Investigator agreed with Santander, and Mr O appealed to the Ombudsman. The Ombudsman upheld the decision, finding that the seller's proactive contact attempts and refund offer were inconsistent with typical scam behaviour, and that fraud could not be established as the most probable explanation based on available evidence. The Ombudsman also noted that even if fraud had been proven, the £100 claim would have been subject to the £100 excess under Payment Services Regulations, resulting in no refund.

The Ombudsman's reasoning

The ombudsman applied the legal definition of an APP scam, which requires fraudulent or dishonest conduct to manipulate or deceive a consumer. The ombudsman found that while Mr O did not receive the goods, the seller's proactive attempts to contact Mr O and offer a refund were inconsistent with typical scam behaviour. The ombudsman noted that fraud requires a high threshold of proof (balance of probabilities) and that the seller's unprofessional conduct, delays, and eventual blocking could indicate incompetence or poor organisation rather than intentional fraud. Without direct evidence of the seller's intent to defraud, and given the seller's attempts at contact, the ombudsman could not conclude that fraud was the most probable explanation. Additionally, even if fraud had been established, the £100 claim amount would have been subject to the £100 excess under PSR rules, resulting in no refund.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website