Charities and consumer groups warn that one in three fraud victims are “missing out on a refund”.
Charities and consumer groups will today warn that protection for fraud victims may be watered down and delayed.
A new compensation scheme for victims tricked into transferring money to fraudsters is set to come into force next year.
The system, overseen by the Payment Systems Regulator (PSR), requires banks to reimburse victims in all exceptional cases.
But today consumer group Which?, charities Age UK and Victim Support and the National Trading Standards Scams Team are sending an open letter to the PSR to express concerns that planned changes to the system “represent a significant step backwards from proposals put forward previously”. . forward’.
Concerns include a proposal that could allow banks to refuse to refund a fraud victim if they can prove they ignored a warning.
Protection: A new redress scheme for fraud victims, overseen by the Payments Systems Regulator, is set to come into force next year
And she wants the PSR to scrap plans to require fraud victims to cover a £100 excess. It notes that a third of victims would not be eligible for reimbursement if the excess were applied because they weigh less than £100.
It also urges the regulator not to delay the implementation of the new mandatory reimbursement system from April to October 2024.
Rocio Concha, which one? The director of policy and advocacy says: “New proposals from the payments regulator could be crucial for victims who have all too often faced an uphill battle to convince their banks that they are not to blame.”
“However, we are seriously concerned that recent proposals from the regulator to introduce a new reimbursement system could result in victims receiving weaker protection than they currently have.”
Caroline Abrahams, charity director at Age UK, said: “We are deeply disappointed by the PSR’s poor mandatory refund proposals, which would leave consumers overpaying if they fall victim to an authorized push payment scam.”
If the proposals are ratified, many older people will be left behind and some will be completely ruined. “The PSR needs to think again.”