Page 17 - PA_Enterprise_November-2024

PAE
making their claim, with the new rules seeing
over 99% of claims by volume covered.
• People will be covered up to £85,000 as
standard, but banks and payment firms can
still reimburse above that amount. Firms may
also choose to apply an optional excess of
up to £100, though this cannot be applied to
vulnerable consumers.
• Anyone who suffers a loss exceeding
£85,000 can still raise their case with
their payment provider and if they remain
unsatisfied, they can take their case to
the Financial Ombudsman Service. The
Ombudsman is independent and looks at
each case on its own individual merits.
• The protections will apply to payments made
on or after 7 October 2024.
While these new measures are now in force,
consumers should still make payments with
care and the PSR is keen to make sure
everyone understands some of the instances
where a claim for reimbursement under the
new APP scams reimbursement requirements
may not happen.
This includes where consumers are found to
have been complicit in the fraud or grossly
negligent. Gross negligence is set at a
high bar and this exception does not apply
to vulnerable consumers. The onus is on
banks and payment firms to prove where
customers have acted with gross negligence,
through ignoring specific, tailored warnings
or not responding to reasonable requests for
information, for example.
Consumers should also take steps to
protect themselves:
Criminals are experts at impersonating people
and organisations. It’s important that everyone
November 2024
exercises caution, acts with vigilance and
stays alert to warnings from their bank or
payment provider. Consumers should use
Confirmation of Payee (CoP) which is an
account name checking service designed to
make sure people are sending the payment
to the right person or business. There’s
widespread adoption of this service, with over
two billion CoP checks having already been
made this year. Over 350 more firms will join
CoP by the end of October following PSR
action.
If someone thinks they have fallen victim to
an APP scam, they should report it to their
account provider as soon as possible, and
within 13 months of making the fraudulent
payment. Their payment provider will be able
to advise and support them on the claim
process. Throughout the process, consumers
should:
• Respond to any requests for information
from their bank promptly – after checking
that the request is genuine.
• Report the details to the police or consent to
their provider reporting to the police on their
behalf.
If a victim of an APP scam is unhappy with
the way their payment firm has responded
to their claim, they can raise their case with
the Financial Ombudsman Service for a
review. The Ombudsman, which can make
rulings up to £430,000, looks at each case on
its own individual merits.
For more information on how to stay safe, the
national Take Five to Stop Fraud campaign
has useful advice and guidance.
www.psr.org.uk
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