A PYMNTS Company

UK: FCA proposes changes to complaint handling rules

By  |  June 27, 2018

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.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.