UK Finance and the LSB have responded to the PSR’s urgent consultation on lowering the maximum level of reimbursement for Faster Payments APP scams to £85,000, a significant reduction from the previously agreed £415,000 (which had been the FOS maximum at the time it was set) to the FSCS maximum.
UK Finance’s response, while acknowledging the risks of a high maximum reimbursement level, remains focussed on the creation of a more effective Consumer Standard of Caution model. It notes that the PSR’s current standard focuses largely on actions consumers must take to secure reimbursement, rather than providing basic steps for consumers to protect themselves from fraud risk.
It states that if the PSR pursue the proposed approach, it is the preference of UK Finance that the level is regularly monitored and reviewed against industry fraud levels and average case values. Conversely, it does not support the proposal that the level shall be adjusted in line with any future changes to the
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