Emma RadmoreThe PSR is consulting urgently on a proposal to lower the maximum level of reimbursement for Faster Payments APP scam claims to £85,000. This is a significant reduction, bringing it down from the previously agreed £415,000 (which was the FOS maximum at the time the figure was set) to the FSCS maximum.
The PSR has had feedback on the risks and impacts of the larger maximum level, not least the prudential concerns of some smaller firms. It has decided that a reduction in the level will help effective implementation and thinks the new limit is in line with the PSR’s work on the incidence and impact of high level scams. It says this figure should ensure that it and the industry can deliver timely and effective consumer protections which would address the vast majority of scams, while mitigating some of the concerns of firms.
Consultation closes at lunchtime on 18 September and the PSR proposes to put the changes in place for the 7 October start of the new rules.