The Treasury Committee has published a report criticising both the “painfully slow” implementation of mandatory reimbursement for fraud victims and the PSR’s proposals that banks and building societies full reimburse victims of APP fraud within 2 days of the fraud being reported. The Committee is not happy that the PSR plans to hand responsibility for policing this to Pay.UK, as it thinks Pay.UK, which is funded by industry, will have an inherent conflict – and some of its guarantors are fundamentally opposed to the plan. it is also concerned that Pay.UK will lack the necessary powers to ensure compliance.
The FSM Bill will require the PSR to establish a mandatory reimbursement system for APP fraud over Faster Payments, which the Committee says should be fully implemented by the end of the year.
The sub-committee on financial services regulations has, separately, written to the BoE, FCA, PSR and FOS on other aspects of fraud.
- it has asked the BoE why high-value transactions made through CHAPs are not included in the PSR’s proposals;
- it has asked FCA whether transactions within the same bank will miss out on the protection;
- it has asked the PSR why scams under £100 will not be refunded; and
- it has asked FOS whether its slow resolution of reimbursement disputes could undermine the proposals.
The PSR’s response says it will carefully consider all feedback received and will publish its final position in May.