New Lloyds, Barclays, Santander, Nationwide rules mean 'less cash' for customers
A big change to bank rules has been confirmed across the UK within days - as payouts are slashed for fraud victims. Customers who unwittingly transfer cash to con artists had been due to receive reimbursement of up to £415,000 under new rules coming in days.
Fraud victims will see compensation lowered to £85,000. Payouts have been given a ceiling of £85,000 when rules take effect on October 7, the Payment Systems Regulator (PSR) confirmed today. The biggest banks in the UK include Lloyds and HSBC as well as Barclays, NatWest, Santander and Nationwide.
The change comes after a “lobbying campaign" from some firms in the payments industry,” according to Rocio Concha, director of policy and advocacy at consumer group Which?. She added: "People don't fall victim to scams because they're careless, but because they're ruthlessly manipulated.
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"As the disastrous consequences of this decision for scam victims become apparent, the regulator must carefully monitor its impact and be ready to intervene with better protections for victims along with stronger financial incentives for banks and payments firms to tackle fraud."
In a statement the PSR said new requirements will provide "world-leading protections" to people who fall victim to scams. The body added: "This was a carefully balanced decision – which provides significant protection to fraud victims and strikes an appropriate balance having regard to the PSR’s innovation and competition objectives and making sure that payment systems work well for everyone."
Most High Street banks and payment companies voluntarily compensate customers who are tricked into sending money to scammers. But in a world first, these refunds will become mandatory from 7 October, the Payment Systems Regulator (PSR) has announced.
Carol Alexander, a lecturer in Financial Markets, was tricked into downloading software that gave fraudsters access to two of her bank accounts. They then stole nearly £80,000. “They emptied everything that they had transferred from Santander and everything from Tide," she told the BBC.
"I collapsed, it was so awful. I felt I had colluded. It was like some sort of coercive control thing, it was horrible,” she said.