Regulators herald APP scam reimbursement requirement

The PSR and other regulators have welcomed the effective date of the APP scam reimbursement requirement, applicable to payments made over FPS and CHAPS between UK bank accounts. The PSR stressed that:

• over 99% of claims by volume will be covered;
• although the standard maximum reimbursement limit is now £85,000, firms can reimburse more if they want, and any person who loses more than the maximum can complain to the FOS; but
• regardless of the new protections customers should take steps to protect themselves by being vigilant and using CoP wherever possible. It also reminds consumers of the duty to report APP scams as soon as possible and at least within 13 months, and of the requirements of the consumer standard of care.

The FCA is still planning to issue its guidance by the end of the year on how firms can reasonably delay payment when investigating suspicions under new law expected to take effect by the end of October.