Banks must refund fraud cases up to £850000
In a world first, Banks must refund fraud cases up to £85000 within 5 working days. These refunds will become mandatory from 7 October, the Payment Systems Regulator (PSR) has announced. Which means the banks can no longer fob you off when you have been scammed by fraudsters.
What the PSR has done is they have held both banks responsible, Refunds will be split 50-50 between sending and receiving firms in the past only your bank would provide a discretionary compensation. The scammers bank got away scot-free. Banking Apps like Revolut and Chase will become more stringent in clearing large payments.
What this means for you, is that you have some security based on online payments. However, as a downside, banks will now find ways to forcibly close ‘high-risk’ customer bank accounts to avoid losses.
Be wary, if your bank starts sending you letters asking for more information etc, respond and chase them up, because they will use a loophole to close your account if you don’t respond.