UK Payment Systems Regulator Publishes Policy Statement and Guidance on the Identification of Authorized Push Payment Scams and Civil Disputes

The U.K. Payment Systems Regulator has published a policy statement and draft guidance to support payment service providers in assessing whether an authorized push payment scam claim raised by a consumer is not reimbursable under the Faster Payments Scheme and CHAPS reimbursement rules because it is a private civil dispute. By private civil dispute the rules mean a dispute between a consumer and payee which is a private matter between them for resolution in the civil courts, rather than involving criminal fraud or dishonesty. The guidance sets out five high-level factors that PSPs should consider when determining whether a claim is a reimbursable APP scam or a civil dispute.

PSPs should consider all high-level factors and the information provided by the consumer or third party when assessing a claim. Changes to the draft guidance as consulted on include: (i) clarification that the guidance does not set any expectations on consumers; (ii) broadening the guidance where possible to include more detail on peer-to-peer disputes; and (iii) clarification on how to use information from Companies House, as an unverified source of information. The PSR consulted on the draft guidance in July this year.

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