Not upheld: Fraud reimbursement (APP scams) complaint against Brent Shrine Credit Union Limited (trading as My Community Bank)

Decision detail

Summary

Miss B complained that Brent Shrine held her liable for a £5,000 loan she claimed was taken out fraudulently in her name as part of an investment scam. She alleged scammers obtained the loan and transferred most of the funds to a third party, though she retained over £1,000. The ombudsman found Miss B's testimony was substantially contradictory and contradicted by technical evidence showing she used her own biometrics and device to handle the funds. All loan communications were sent to her correct contact details, the funds went to her genuine account, and she spent or saved significant portions herself. Without substantiating evidence of fraud, the ombudsman concluded Miss B consented to the loan and fairly remained liable for it.

The Ombudsman's reasoning

The ombudsman found that Miss B's testimony was substantially contradictory and contradicted by direct evidence, particularly regarding whether she used remote access or her own biometrics to handle the funds. The evidence strongly indicated Miss B consented to the loan, either by taking it out herself or knowingly allowing a third party to apply on her behalf. She received all loan communications at her correct contact details, the funds went to her genuine account, and she spent or saved a significant portion herself. No substantiating evidence of fraud was provided despite the ombudsman specifying what evidence was needed. The circumstances (lack of detected remote access, Miss B retaining substantial funds, delayed reporting) were inconsistent with the alleged scam.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website