Regulatory Outlook

Consumer credit and payments | UK Regulatory Outlook October 2022

Published on 26th Oct 2022

PSR's consultation on authorised push payment (APP) scams 

PSR's consultation on authorised push payment (APP) scams

On 29 September 2022, the Payment Systems Regulator (PSR) published a consultation paper on authorised push payment (APP) scams and mandatory reimbursement, under which banks will be required to reimburse anyone who loses more than £100 to bank transfer or payment fraud.

The regulator proposes new measures which would:

  • protect consumers from APP scams by requiring reimbursement for the victims of APP scams by payment service providers (PSPs), with only limited exceptions, and by improvement of such victims' protection;
  • ensure banks settle all fraud claims within 13 months;
  • change liability to be split between the sending and receiving banks; and
  • incentivise banks and building societies to prevent APP scams.
  • The proposed view of the PSR is that the sending PSP has to reimburse the victim as soon as possible, but no more than 48 hours after the fraud being reported. The exceptions include the victim being involved in the scam themselves or acting with gross negligence.

Comments are to be made by 25 November 2022.


* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

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