Banks to be forced to compensate victims of financial fraud under new Government proposals
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MSE_Sophie
Posts: 123 MSE Staff
Victims of authorised push payment (APP) scams could soon be guaranteed refunds from their bank as part of new rules to better protect consumers from financial fraud.
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For anyone interested in the detail, the PSR consultation paper is published at https://www.psr.org.uk/media/kg0bx5v3/psr-cp21-10-app-scams-consultation-paper-nov-2021.pdf
Seems hard to argue with the fundamental principles of mandatory participation by all PSPs, better scam prevention, and greater transparency via published reimbursement rates per bank, but as ever the devil will be in the detail, and chances are that tightening of controls will be unpopular with many customers, while if there's any sense that customer charges are increased to fund these measures then that would inevitably lead to understandable accusations that the careful would be subsidising the careless....1 -
This will almost certainly mean
- more attempts by fraudsters and would-be fraudsters to fill their boots
- much more stringent checks on payments, with potential delays, for everybody
- increased costs, for everybody
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eskbanker said:while if there's any sense that customer charges are increased to fund these measures then that would inevitably lead to understandable accusations that the careful would be subsidising the careless....2
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Daliah said:This will almost certainly mean
- more attempts by fraudsters and would-be fraudsters to fill their boots
- much more stringent checks on payments, with potential delays, for everybody
- increased costs, for everybody
This will be the feckless being funded by the non-feckless who will suffer higher debit interest rates and lower credit interest rates. And since people now have no reason to not engage with these APP scams, and the Police clearly don't care about stopping them, the scams will become more profitable, and then more numerous, and more profitable etc etc.
People like Martin or this site don't particularly care as they're sat on their pot of gold and are happy to say whatever makes them more money. Everyone else who isn't a multi-millionaire suffers.
But hey, consumer rights!0 -
I suspect we will see more posts complaining about banks taking security seriously.
And probably that night out where someone spends more than they expected will suddenly become more stories of being 'hacked' or 'scammed'.Past caring about first world problems.2 -
Can only see a increase in complaints from customers about the number or questions asked when setting up a payment.. Many moan now when you ask simply are are you sure the details are correct & where did you get them from.
Should be a case for refunds if a customers says they are happy they are the correct details, then they have lost any chance of a refund.
Or banking takes a step back to the 3 day payments. Which will mean more chance of money not going to the fraudsters.Life in the slow lane1 -
As well as now having a credit report, will there be a scamability report and the previously scammed find it hard to get accounts or have a very low limit on any transactions they make?
But a banker, engaged at enormous expense,Had the whole of their cash in his care.
Lewis Carroll2 -
eskbanker said:while if there's any sense that customer charges are increased to fund these measures then that would inevitably lead to understandable accusations that the careful would be subsidising the careless....
Yeah, my first thought was "who do people think REALLY pay for these refunds?"
Certainly won't be the banks.
Personally, I do not agree with them (the new proposals). If people wish to ignore the umpteen warnings and still give their money away, that's up to them. I really do not see what more the banks can do. There are already multiple obstacles to moving our money.
Waiting now for the scores of posts that disagree with my view!
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born_again said:
Or banking takes a step back to the 3 day payments. Which will mean more chance of money not going to the fraudsters.
But I do think there will be a lot more restrictions imposed by the banks on people legitimately moving their money around.
Rumour has it one well known building society is already thinking of changing its max £10k per FP transaction to a maximum total of £10k per day per customer. Which, when you take into account for example the annual ISA allowance is £20k, is just going to make life more difficult for people with a genuine need to move their money to a different financial institution.
I think the regulations should provide scope for financial institutions to apply different rules to 'trusted' accounts vs other payments - i.e. that if you have a payee you've been using for some length of time (or the payee is verified as one of your own accounts elsewhere) then (optional) higher limits should apply, but with no right to compensation if the transfer is in some way linked to a scam.
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wiseonesomeofthetime said:.
Waiting now for the scores of posts that disagree with my view!0
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