Not upheld: Fraud reimbursement (APP scams) complaint against Plata Finance Limited (trading as Plata)

Decision detail

Summary

Mrs P complained that Plata Finance Limited was holding her liable for a £10,000 loan she claimed she neither applied for nor knew about. She had been contacted by a scammer on social media who convinced her to invest in cryptocurrency, and the loan was taken out without her knowledge. However, the ombudsman found that Mrs P actively participated in the loan application by providing a live selfie, signing the loan agreement, and receiving scam warnings on her verified contact details. Although Mrs P was a victim of fraud, she knowingly applied for the loan and used the funds for what she believed was a genuine investment. The complaint was not upheld, and Plata was not required to write off the debt.

The Ombudsman's reasoning

The ombudsman concluded that Mrs P knew about and participated in the loan application based on multiple pieces of evidence: the application used her genuine details, she provided a live selfie and banking ID, she signed the loan agreement, scam warnings were sent to her verified contacts, and monthly repayments were taken from her account. Although Mrs P was a victim of a cryptocurrency investment scam, she actively participated in the loan application process and used the funds for what she believed was a genuine investment. Therefore, Plata was not responsible for the loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website