Banks charging £100 for scam victims under new rules including Monzo, HSBC and Barclays

New rules have been introduced for banks from today and if you are they "must" refund you in most cases.

The new rules - which have been implemented by the Payment Systems Regulator - and building societies need to reimburse people who fall victim to up to £85,000 of an APP scam. The new rules also apply to e-money firms which include prepaid card providers and savings providers

APP scams happen when someone is tricked into sending money to a fraudster posing as a genuine payee. This type of scam has quickly become one of the most "significant" types of fraud in the UK accounting for nearly £460million in losses last year according to UK Finance.

However, there is a huge catch to the new rules. Banks can now choose to include an "excess" fee of up to £100 to your claim. So £100 could be deducted from your reimbursement, so in essence, you're "charged" £100 to get your money back. The £100 excess cannot be applied to vulnerable consumers under the PSR’s rules.

The excess fee is optional so banks and building societies don't have to add it, with some account providers pledging to waive the fee altogether. While others potentially will add one on a "case by case" basis. Some banks have argued that applying the £100 excess could help to prevent customers from taking unnecessary risks with lower value payments.

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Nationwide Building Society

Nationwide said the firm would not charge customers £100 excess and would "review" claims on a case-by-case basis in regard to the maximum amount of £85,000 - this means if you lose more than this amount to a scam you could poentially be covered. Jim Winters, director of protection at the Building Society said: "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 confirmed that the £100 excess could be applied to a claim and this would be decided on a case-by-case basis. They said: "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

Barclays has also confirmed it may charge the £100 excess as part of a claim but again on a case-by-case basis. A Barclays spokesperson said “the protection of our customers’ funds and data is our highest priority" and 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 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.

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