New APP scam protection code comes into force
A new industry code designed to protect victims of Authorised Push Payment (APP) scams comes into force today (28 May) with the support of 17 banks, reports Jane Connolly.
Driven by the Payment Systems Regulator (PSR) and developed by consumer groups and the industry, the code offers more protection than ever before for those exploited by criminals.
APP scams occur when consumers are tricked into making an authorised payment to a fraudster.
From now on, participating banks will decide whether to reimburse the victim within 15 working days. Unsatisfied customers can refer the matter to the Financial Ombudsman Service, regardless of whether their bank has signed up to the code.
“APP scams can have a devastating impact on the people who fall victim to them,” says Chris Hemsley, co-managing director of the PSR.
“The code is a major step-up in protections and it reflects our strong belief that if somebody has done everything they can reasonably do to protect themselves, they should be reimbursed. I welcome the commitment that these banks have made to their customers.”
Banks that have signed up to the code include Barclays, HSBC, First Direct, M&S Bank, Lloyds Banking Group – including Lloyds Bank, Halifax, Bank of Scotland and Intelligent Finance – Metro Bank, Nationwide, RBS, NatWest, Ulster Bank, Santander and Starling Bank.