BANKS including Nationwide and RBS are now charging a new £100 fee amid a major rule change.
New rules, which came in earlier this week, mean banks must now reimburse authorised push payment (APP) fraud victims.
A reimbursement limit of £85,000 has been applied under the rules, although banks can choose to go further than this and repay higher amounts.
But banks now have the power to impose a £100 excess fee when settling claims, a policy that five banks have now adopted.
So, if your claim is for a payment of £100 or less, trying to recover the money may not be of any benefit.
Excess fees will not apply to vulnerable consumers due to guidelines by the Payment Systems Regulator.
THE FIVE BANKS CHARGING THE FEE
The five banks implementing this fee are HSBC, First Direct, Lloyds, Halifax and Bank of Scotland.
A HSBC spokesperson told The Sun: “All of us have a role to play in preventing fraud and scams – we want to encourage customer caution, particularly when it comes to lower value purchases made online.”
The Sun reached out to the other banks mentioned above for comment, and we will update readers if we get any further responses.
Liz Edwards, a money expert at Finder previously told The Sun: “£100 is a lot of money to many people.
“Based on 2023 fraud figures, more than 58,000 cases would have resulted in no refund if all companies had applied the excess, and now only four of the major providers have confirmed they won’t.”
THE BANKS WHICH ‘MIGHT’ CHARGE THE FEE
Others have said they ‘may’ apply an excess or judge each case independently.
For example, Starling Bank has said it may apply an excess of £50 rather than £100.
A Natwest spokesperson also confirmed that they would assess claimants on a case-by-case basis and with regard to the specific circumstances of each customer.
The only way to avoid this caveat is to switch to one of the four banks which have pledged not to apply these charges.
THE BANKS NOT CHARGING THE FEE
Meanwhile, Nationwide, Virgin Money, TSB and AIB have said they will not implement the excess fee.
A Virgin Media spokesperson said: “Where customer circumstances result in a reimbursement under the rules, we are not planning to apply the voluntary excess, and this includes claims under £100.”
While a TSB said that the bank is “prioritising fraud protection for customers”.
They said: “Charging £100 could exclude a third of all victims from claiming refunds – and it’s not right to penalise people for scams that take place largely due to weaknesses on social media platforms.”
Last year there were 232,429 cases of APP fraud in the UK – a 12% jump since the year before.
Overall, £459.70 million was lost in 2023 to this type of scam.
Two-thirds of the total APP cases in 2023 were also down to purchase scams – which is when someone pays for goods or services which are never received.
This usually happens when purchasing off social media, as more than three-quarters of authorised fraud starts online.
Banks such as TSB emphasise that these scams are not the fault of the customer, while HSBC claims that by implementing the excess it will encourage shoppers to exercise more caution.
Shoppers should now be extra wary of dodgy deals when browsing online.
What to do if you think you’ve been scammed
IF you’ve lost money in a scam, contact Action Fraud on 0300 123 2040 or by visiting Actionfraud.police.uk.
You should also contact your bank or credit card provider immediatley to see if they can stop or trace the cash.
If you don’t think your bank has managed your complaint correctly, or if you’re unhappy with the verdict it gives on your case you can complain to the free Financial Ombudsman Service.
Also monitor your credit report in the months following the fraud to ensure crooks don’t make further attempts to steal your cash.
HOW CAN I PROTECT MYSELF FROM SCAMMERS?
When shopping online, always be cautious about where you’re buying from and what you’re buying.
If a price looks too good to be true, sometimes it actually is.
It’s much safer to stick to reputable websites where you know people in the UK usually shop from.
If you’re not sure about a website, it’s worth googling customer reviews and asking friends for their experiences.
Fraud cases which begin through phone conversations or emails are typically less common, but can lead to scammers getting hold of larger amounts of your cash.
Always check the source of the phone call by googling the number, or making sure the email is from an official domain.
Scammers can pose as banks and other trusted sources to get the information from you which they need to enter your bank account.
Always be sceptical not to provide any personal details over the phone – do not give away your PIN or full password as your bank will not need this and you are likely being scammed.
If you’re unsure, end the call and ring the trusted number of the organisation so that you definitely know you’re talking to the right people.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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