Wed Sep 04 15:29:00 UTC 2024: – New plans to reduce maximum reimbursement banks must provide to customers scammed into transferring money to fraudsters
– Mandatory rules effective from October 7, obliging banks to refund victims unless gross negligence shown
– Maximum reimbursement value to be reduced from £415,000 to £85,000
– Consumer group Which? criticizes move as “outrageous” and warns of financial and emotional harm to victims
– Payment Systems Regulator (PSR) launches consultation on proposed cap, aligning with Financial Services Compensation Scheme (FSCS) limit
– PSR reassures that new cap will still cover over 99 percent of scam claims based on volume of cases
– Consultation period set to close on September 18, final approach to be confirmed before end of September
– Financial Ombudsman Service reports highest level of complaints related to scams since at least early 2018
– Lending Standards Board (LSB) emphasizes existing voluntary code’s consumer protections against APP fraud and prevention and detection measures
– Payment service providers urged to focus on prevention and detection as sector adapts to new framework

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