PSR has announced a new reimbursement cap for victims of Authorised Push Payment (APP) scams, setting the maximum limit at £85,000.
This decision, effective from 7 October, aims to cover over 99% of APP scam claims, ensuring substantial protection for individuals affected by such frauds. The cap is part of the PSR’s initiative to bolster fraud prevention measures across payment systems while fostering innovation and competition within the financial sector.
The PSR highlighted that this cap would not only safeguard consumers but also motivate firms to enhance their anti-fraud controls. This balance of consumer protection and industry improvement aligns with the PSR’s broader objectives to ensure that payment systems remain efficient and trustworthy for all users. A detailed policy statement is expected to be released next week, which will further clarify the rationale behind this pivotal decision.
Additionally, the Bank of England has mirrored this approach in its management of the CHAPS payment system. After a thorough review of consultation feedback, it has also set the reimbursement limit for CHAPS at £85,000. This consistency across different payment systems is intended to benefit both consumers and the industry, with a promise to reevaluate this limit within the next 12 months.
The regulator’s swift announcement prior to the policy’s implementation in October is aimed at providing clear guidance to both consumers and firms, ensuring they are well-prepared for the upcoming changes.
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