In September 2016, Which? made its first super-complaint to the Payment System Regulator (“PSR”) in relation to push payments.
Which? reports that the number of consumers using bank transfers is on the increase with over 70 million bank transfers taking place every month. Despite this protection, standards have not kept pace. Consumers conned into transferring money by bank transfer to a scammer currently have no legal right to get their money back, unlike when a credit or debit card is used.
This issue is not new to us. We represented Tidal Energy in its case against Bank of Scotland regarding failures to check account names when processing CHAPS payments (which was settled at Supreme Court level).
The deadline for PSR’s response is 22 December 2016. Watch this space…
Which?’s super-complaint We received the super-complaint, ‘Consumer safeguards in the market for push payments’, on 22 September 2016. Which? is concerned that when consumers are tricked into transferring money to a fraudster via a ‘push’ payment (such as when the consumer instructs their bank to send money) there is not an appropriate level of protection compared to other types of payment. Specifically, Which? believes an investigation is needed to address the following: The extent to which banks could change their conduct to reduce consumer harm from scams that trick people into authorising push payments to a fraudster. Possible changes to legislation or regulation, to change the incentives on banks and payment system operators, and to ensure that more is done to manage the risks from these types of scams and to protect consumers from harm.