One in three fraud victims ‘could miss out on refunds’, charities and consumer groups have warned
Protections for fraud victims risk being watered down and delayed, charities and consumer groups warned today.
A new compensation system for victims tricked into transferring money to fraudsters is due to come into effect next year.
The scheme, overseen by the Payment Systems Regulator (PSR), is designed to require banks to reimburse victims in all but the most exceptional cases.
But today consumer group Which?, charities Age UK and Victim Support and the National Trading Standards Fraud Team are sending an open letter to the PSR to express concern that the planned changes to the scheme ‘mark a significant step backwards from previous proposals forward’.
Among the concerns is a proposal that could allow banks to refuse to reimburse a fraud victim if they can prove they ignored a warning.
Protection: A new compensation system for fraud victims overseen by the payments regulator is due to come into force next year
And it wants PSR to scrap plans for a £100 excess to be covered by fraud victims. It noted that a third of victims would not be eligible for a refund if the excess was applied because they were under £100.
It also urges the regulator not to delay the implementation of the new mandatory reimbursement scheme from April to October 2024.
Rocio Concha, what? director of policy and advocacy, says: “The new proposals from the payments regulator could be a game-changer for victims who have too often faced an uphill battle trying to convince their banks that they are not at fault.
“However, we are seriously concerned that more recent proposals from the regulator on how to introduce a new reimbursement scheme could leave victims with less protection than they currently have.”
Caroline Abrahams, charity director at Age UK, said: “We are deeply disappointed by PSR’s weak proposals for mandatory reimbursement, which will leave consumers picking up too much of the tab if they fall victim to authorized directed payment fraud .
If the proposals are ratified, many elderly people will lose out and some will be left completely devastated. PSR needs to think again.
r.rickardstraus@dailymail.co.uk