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

Decision detail

Summary

Mr A lost £2,600 to an APP scam when making faster payments for rental accommodation that turned out to be fraudulently offered. The genuine property owners subsequently settled with Mr A's mother for £3,400 in full and final settlement. Mr A claimed reimbursement from Santander under the Reimbursement Rules, but Santander declined, characterising it as a civil dispute. The ombudsman found that while Mr A was indeed an APP scam victim, the settlement agreement would have accounted for his £2,600 loss, meaning he was not out of pocket. Therefore, reimbursement by Santander would be unfair and result in betterment, and the complaint was not upheld.

The Ombudsman's reasoning

While Mr A was the victim of an APP scam and the Reimbursement Rules require firms to reimburse such payments, the ombudsman found it would not be fair and reasonable for Santander to reimburse him. The goodwill settlement of £3,400 accepted by Mr A's mother in full and final settlement would have taken into account the £2,600 Mr A paid to the scammers, among other factors. Therefore, Mr A is not out of pocket, and reimbursement by Santander would result in betterment. The ombudsman found no other grounds on which Santander should fairly bear responsibility for refunding Mr A.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website