Following on from our previous article on the mandatory reimbursement framework for victims of authorised push payment fraud (APP), the Payment Systems Regulator (PSR) announced on 4 September that they are now consulting on a new cap for the maximum level of reimbursement for victims of APP fraud.
Specifically, following additional evidence provided by the industry and the FCA, the PSR have now proposed that the maximum liability amount is set at £85,000. If confirmed, this would bring the cap in line with the Financial Services Compensation Scheme (FSCS) limit. This represents a significant change in the proposed cap amount as the previous maximum reimbursement value had been set at £415,000, in line with the Financial Ombudsman maximum reimbursement limit at that time.
According to the information seen by the PSR, the newly proposed cap will still see over 99% of claims (by volume) covered as the PSR have produced evidence showing that in 2023, out of over 250,000 cases of APP f
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