UK Payment Systems Regulator To Proceed With Plans To Reimburse Payment Scam Victims
The U.K. Payment Systems Regulator has published the outcome of the consultation it launched in November 2017 on a contingent reimbursement model for the victims of so-called “authorized push payment” scams. That consultation, which closed on January 12, 2018, outlined high level principles for the CRM and requested input from stakeholders on how the model should be further developed, implemented and administered.
Taking into account responses to the consultation, the PSR proposes to proceed with the CRM model and will establish a dedicated steering group to develop it, in the form of an industry code for reimbursement of APP scam victims. The steering group will be comprised of representatives from key stakeholder groups, particularly consumer representatives and PSPs, with oversight and support from the PSR. Other relevant regulatory and governmental bodies will also be involved as observers.
The PSR intends that the steering group should produce an interim code by September 2018. The Financial Ombudsman Service will then start taking into account the code when determining consumer complaints about APP scams. There will then be a further round of consultation, after which the final industry code is expected to be in place in early 2019.