The Financial Ombudsman Service is free, independent, and can award more than a firm might voluntarily offer — but knowing the mandatory reimbursement rules before you complain changes how fast you get paid.
What changed on 7 October 2024
Before October 2024, getting reimbursed for an authorised push payment (APP) scam — where you were tricked into sending money yourself, rather than having it stolen without your knowledge — depended on a voluntary code that banks could interpret loosely. Since 7 October 2024, the Payment Systems Regulator's (PSR) mandatory reimbursement rules require virtually all UK payment service providers to reimburse victims of most APP scams sent over Faster Payments or CHAPS, as a matter of legal obligation rather than goodwill.
How the cost is split, and the excess that applies
Under the PSR's rules, the cost of reimbursement is split 50/50 between the sending payment service provider (your bank) and the receiving payment service provider (the bank the scammer's account was held at). Firms can apply a standard excess of up to £100 per claim — but this excess cannot be applied to vulnerable customers, and firms must have a way to identify vulnerability at the point a claim is made.
The cap, and the claim window
Reimbursement under the mandatory scheme is capped at £85,000 per claim. You generally have 13 months from the date of the payment to bring a claim, so this isn't something that needs to be resolved in a panic within days — but earlier reporting still gives your bank a better chance of recovering funds before they're moved on.
The reimbursement timeline your bank must meet
- Within 5 business days of you reporting the scam, your bank must reimburse you in most cases.
- Up to 35 business days is allowed only in specific circumstances — for example, where the bank needs more time to establish whether you acted with gross negligence, or to investigate a claim it reasonably suspects is fraudulent.
When a bank can refuse: the gross negligence standard
A bank can decline to reimburse you if it can show you acted with gross negligence — a considerably higher bar than simply "you should have been more careful." Ignoring a specific, clear warning your bank gave you at the time of the payment is the kind of scenario that can meet this standard; general carelessness typically does not. If your bank refuses on this basis, ask it to state in writing exactly which specific warning it says you ignored.
What this means practically
- Report the scam to your bank as soon as you realise — you have up to 13 months, but earlier reporting improves recovery odds.
- Expect reimbursement within 5 business days in most cases; 35 days only applies in specific, justified circumstances.
- If your bank cites gross negligence, ask exactly which warning it says you ignored — a vague refusal is not a valid one.
- If refused or delayed unreasonably, escalate to the Financial Ombudsman Service, which can award up to £455,000.
Related Kibbo Tools
Sources
- Payment Systems Regulator — PS24/7 policy statement on APP scam reimbursement. psr.org.uk
- Financial Ombudsman Service — escalating an unresolved payment fraud complaint. financial-ombudsman.org.uk