How much could you get back from your bank if you were tricked by a scammer?
Some account providers have said they will waive an optional excess of up to £100 on reimbursements and go beyond the new rules.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A new scams safety net is now in place – but whether or not bank transfer fraud victims receive the full amount they lost may partly depend on who they bank with.
Rules have come into force making reimbursement mandatory in cases where people have been tricked into transferring money to a fraudster.
Some account providers have indicated they may go above and beyond the new rules on a case-by-case basis.
Reimbursement is mandatory up to the value of £85,000 under the rules set by the Payment Systems Regulator (PSR) and firms can also opt to apply an excess of up to £100.
Some account providers have pledged to waive the excess – and some may also choose to consider claims for more than £85,000.
Some banks have argued that by applying the £100 excess, this could help to prevent customers taking unnecessary risks with lower value payments.
The £100 excess cannot be applied to vulnerable consumers under the PSR’s rules.
Here is a look at what some of the main account providers have said:
– Nationwide Building Society
Jim Winters, director of protect at Nationwide, said: “We’ve decided not to charge our customers the £100 excess if they are victims of fraud or scams.
“We will also continue to review on a case-by-case basis any claims for £85,000 and over.
“It is vital we support victims of crime in their time of need while identifying ways to crack down and prevent fraud and scams before they take place, stopping organised crime and gangs in their tracks.”
– Virgin Money
Virgin Money said it is not planning to apply the voluntary excess, including claims under £100.
– TSB
TSB, which has been operating its own fraud refund guarantee since April 2019, has pledged to waive the £100 excess.
The bank said it will also continue to review claims outside the scope of the rules on a case-by-case basis.
Nicola Bannister, customer support director, TSB, said: “We welcome these new rules that should prove a game changer to consumers.”
– Starling Bank
Starling said that, as it believes the fight against fraud is a shared responsibility, it will assess each case, and it may apply a £50 excess per claim.
– NatWest (includes RBS and Ulster Bank)
A NatWest spokesperson said: “We’re continuing to invest in our people and processes to better protect our customers from the criminals who target them.
“Under these new regulations from the PSR, we may apply a fixed excess of £100 to the total amount reimbursed to a customer. This is assessed on a case-by-case basis and with regard to the specific circumstances of each customer.”
– Barclays
Customers may be required to pay an excess of £100 as part of their claim and the bank will assess claims on a case-by-case basis.
A Barclays spokesperson said: “The protection of our customers’ funds and data is our highest priority.”
The bank said its “continued investment in robust security systems” and ongoing efforts to educate customers on scams help to keep scam rates down.
– Lloyds Banking Group (includes Lloyds, Halifax and Bank of Scotland)
Lloyds Banking Group customers may be required to pay a £100 excess.
The bank has said it recognises there may be extenuating circumstances in some cases.
– Santander UK
The bank has said if a reimbursement is made, it may charge a £100 excess and this will be assessed on a case-by-case basis.
– HSBC UK and First Direct
The banks will be applying the £100 excess and said they remain supportive of a reimbursement model for consumers.
An HSBC UK spokesperson said: “All of us have a role to play in preventing fraud and scams.
“We want to encourage customer caution, particularly when it comes to lower value purchases made online. This is why we will be applying the excess to the total amount reimbursed to customers, while taking into account the specific circumstances of each customer where appropriate.”
– Monzo
Monzo will be implementing the £100 excess on fraud claims on a case-by-case basis.