You are here: Home - Saving-Banking - News -

‘Super-complaint’ launched over banks’ treatment of fraud victims

0
Written by: Paloma Kubiak
23/09/2016
A ‘super-complaint’ has been submitted to the financial regulators calling on them to ensure banks better protect consumers who are tricked into transferring money to a fraudster.

We now make over 70 million bank transfers, known as ‘push payments’ a month, compared with just over 100 million per year a decade ago, but campaign group Which? said the consumer protections “have not kept up”.

There are protections available for consumers who fall victim to direct debit, debit card and credit card fraud but currently, those conned into transferring money by bank transfer to a scammer have no legal right to get their money back.

As scams become ever-more sophisticated, consumers can’t be expected to detect complex scams pressuring them to transfer money and Which? said banks should shoulder more responsibility for money lost to tricksters in this way.

As a result, it’s submitted a ‘super-complaint’ – allowing certain bodies legal powers to complain when they’re concerned consumer interests are significantly harmed – to the Payment Systems Regulator (PSR) and the Financial Conduct Authority (FCA).

Which? is calling for the regulators to:

  • Formally investigate the scale of bank transfer fraud and how much it is costing consumers.
  • Take action and propose new measures and greater liability for banks to ensure consumers are better protected when they have been tricked into making a bank transfer.

Alex Neill, director of policy and campaigns at Which?, said: “We all now regularly use bank transfers to pay for things, but what most of us don’t realise is that if you’re conned into paying out money to a fraudster you stand to lose all of your money, unlike when you use your credit or debit card.

“With scams on the rise, consumers can only protect themselves so far and we believe that banks must do more to tackle bank transfer fraud and safeguard their customers from scams.”

The FCA and PSR now have 90 days to investigate and respond to the concerns raised by Which?.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week