Not upheld: Fraud reimbursement (APP scams) complaint against National Westminster Bank Public Limited Company (NatWest)

Decision detail

Summary

Mrs S purchased a designer bag for £505 via bank transfer from an online marketplace seller after reviewing photographs and a video. When the bag arrived with a broken zip and worn metallic coating, Mrs S requested a refund, which the seller refused. Mrs S then complained to NatWest claiming she was a victim of a scam. NatWest declined the complaint, characterizing it as a private civil dispute. The ombudsman upheld NatWest's decision, finding that although the bag's condition may have been misrepresented, Mrs S received the item she intended to purchase, meaning no APP scam occurred under the Faster Payments Scheme definition. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman applied the Faster Payments Scheme definition of APP scam, which requires that a consumer be deceived into transferring funds for a purpose not intended. Here, Mrs S received the designer bag she intended to purchase; the dispute concerns only the condition of the goods. While the seller may have misrepresented the bag's condition, this constitutes a private civil dispute over goods quality, not a scam involving deception about the payment's purpose. The ombudsman found no evidence the seller requested bank transfer payment to defraud Mrs S, and NatWest had no obligation to intervene in what appeared to be an informal private sale.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website