Not upheld: scam refund claim - civil dispute complaint against Barclays Bank UK PLC

Decision detail

Summary

Mr and Mrs C paid £11,579 to a kitchen installation business (F) which completed only partial work before entering administration. They requested a refund from Barclays, claiming they were victims of a scam, but Barclays declined on the basis it was a civil dispute. The ombudsman upheld Barclays' decision, finding that although Mr and Mrs C suffered a financial loss, the matter falls outside the definition of an APP scam under the Reimbursement Rules as it involves a legitimate business that failed financially rather than fraudulent deception. The ombudsman acknowledged Mr and Mrs C's legitimate grievance but confirmed Barclays had no obligation to refund them.

The Ombudsman's reasoning

The Reimbursement Rules specifically exclude civil disputes from the definition of APP scams. Although Mr and Mrs C did not receive the completed service, this constitutes a civil dispute between consumer and supplier rather than criminal fraud or dishonesty. The business was legitimate, began work, and likely failed due to financial difficulties rather than intentional deception. The ombudsman found no evidence that F set out to defraud Mr and Mrs C or knew it would be unable to complete the work at the time of payment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website