The Financial Conduct Authority (FCA) of the UK on Tuesday (June 26) announced it is proposing changes to complaint handling rules to help victims of authorized push payment (APP) fraud.
In a press release, the Financial Conduct Authority said that authorized push payment fraud happens when a consumer or micro-business is tricked into instructing their payment service providers, including banks, to send money to an account of a fraudster.
According to the Financial Conduct Authority, in the U.K., there were 43,875 cases of authorized push payment fraud, amounting to total losses of £236 million in 2017. Victims of the scam can’t present a complaint to payment service providers, making it hard for them to remedy the situation. The FCA wants to require firms to handle the complaints in line with the complaint handling rules laid out in the FCA handbook.
Additionally, the FCA said it is proposing that eligible complaints are allowed to be referred to the Financial Ombudsman Service if they aren’t happy with the outcome by the payment service provider or if they have not received a response to the complaint.
Full Content: FCA
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