New PSR Rules Grant Mandatory Reimbursement Rights to APP Fraud Victims
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New PSR Rules Grant Mandatory Reimbursement Rights to APP Fraud Victims

Victims of authorized push payment (APP) fraud will soon have the right to full reimbursement under new proposals from the Payment Systems Regulator (PSR). Currently, more than three-quarters of bank customers have been unable to secure refunds after falling victim to APP fraud, despite a voluntary code that promises reimbursement in cases deemed “no blame.”

The PSR’s latest proposals aim to establish mandatory reimbursement for online and mobile payments “in all but exceptional circumstances.” Additionally, the regulator seeks to enhance protections for APP scam victims and encourage banks and building societies to take proactive measures against these scams.

The PSR is eager to implement mandatory reimbursement requirements for consumers “as soon as possible,” pending the passage of legislative changes under the Government’s Financial Services and Markets Bill.

Chris Hemsley, managing director at the PSR, emphasizes the urgency of the issue, stating: “Fraudsters have continued to devastate the lives of innocent victims through APP scams. We want to see all banks, building societies, and other payment providers doing more to prevent APP scams from occurring in the first place. These proposals will ensure that everyone has increased protection from scams. Our proposed rules will benefit all consumers, regardless of their banking institution.”