FCA introduces new rules on handling complaints about Authorised Push Payment fraud

[Legal Beagles]

The Financial Conduct Authority (FCA) has today published new rules allowing victims of Authorised Push Payment (APP) fraud to complain to the payment services provider (PSP) receiving their payment.

https://www.fca.org.uk/news/press-re...-payment-fraud


Comes into force on 31 January 2019

authorised push
payment fraud DEFINITION

a transfer of funds by person A to person B, other than a transfer
initiated by or through person B, where:

(1) A intended to transfer the funds to a person other than B but
was instead deceived into transferring the funds to B; or

(2) A transferred funds to B for what they believed were legitimate
purposes but which were in fact fraudulent.

In this definition, “initiated” should be construed in the context of the
way it is used in the Payment Services Regulations (so that, for
example, funds transferred by credit transfer would be included but
not where they have been transferred by direct debit or debit card or
credit card via a merchant).

[Amethyst]

Part 1: Comes into force on 14 December 2018

2 Jurisdiction of the Financial Ombudsman Service
…
2.7 Is the complainant eligible?
…
2.7.6 R To be an eligible complainant a person must also have a complaint which
arises from matters relevant to one or more of the following relationships
with the respondent:
…
(2A) the complainant is (or was) a payer in a payment transaction in
relation to which the respondent is (or was) the payee’s payment
service provider, provided the complaint relates to the respondent’s
obligations under regulation 90(3) of the Payment Services
Regulations;




Part 2: Comes into force on 31 January 2019

NOTE ( DISP 2.7.6R(2B) applies in
relation to a complaint
concerning an act or
omission which occurs on
or after 31 January 2019. )


2 Jurisdiction of the Financial Ombudsman Service
…
2.7 Is the complainant eligible?
…
2.7.6 R To be an eligible complainant a person must also have a complaint which
arises from matters relevant to one or more of the following relationships
with the respondent:
…
(2A) the complainant is (or was) a payer in a payment transaction in
relation to which the respondent is (or was) the payee’s payment
service provider, provided the complaint relates to the respondent’s
obligations under regulation 90(3) of the Payment Services
Regulations;
(2B) the complainant is a person that has transferred funds as a result of
an alleged authorised push payment fraud and both:
(a) the respondent is (or was) involved in the transfer of the
funds; and
(b) the complaint is not a PSD complaint;
…
2.7.7 G (1) DISP 2.7.6R(5) and DISP 2.7.6R(6) include, for example, employees
covered by a group permanent health policy taken out by an
employer, which provides in the insurance contract that the policy
was taken out for the benefit of the employee.
(2) DISP 2.7.6R(2B) includes any complaint that the respondent did not
do enough to prevent, or respond to, an alleged authorised push
payment fraud.
…